The Relationship Between CEO Power, Audit Fees and Corporate Growth Opportunities

New Challenges in Accounting and Finance Pub Date : 2022-08-01 DOI:10.32038/ncaf.2022.07.02

M. Nikbakht, Mehran Jahandoust Marghoub, Soraya Weysihesar

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Abstract

One of the most important goals of companies is to create value and increase the wealth of shareholders in the long run and the increase in wealth will be achieved only as a result of the desired performance of the company and the desired performance will be achieved with proper management of the company. In this regard, company managers and especially the CEO play an important role in running the company. Therefore, various decisions in the company are influenced by the power and influence of the CEO. Also, the impact of the CEO's power and influence on the company's outcomes depends on the comparative advantage of benefits and costs. Therefore, in this study, the relationship between CEO power, audit fees and corporate growth opportunities has been investigated. The statistical population of the research is the companies listed on the Tehran Stock Exchange and the research period is from 2011 to 2020. To test the research hypotheses, 77 companies were selected by systematic elimination method. To test the hypotheses, panel data were used and the relationship between variables was estimated using multivariate regression. The results show that there is a negative (positive) and significant relationship between CEO power (audit fee) and corporate growth opportunities. Also, CEO power has a significant moderating effect on the relationship between audit fees and corporate growth opportunities. The research findings could cover the research gap in this area and be useful for managers, investors, and capital market lawmakers in decision making.

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CEO权力、审计费用与企业成长机会的关系

公司最重要的目标之一是为股东创造价值和增加财富，从长远来看，财富的增加只有在公司达到预期业绩的情况下才能实现，而预期业绩的实现需要公司的妥善管理。在这方面，公司管理者，尤其是CEO在公司的运营中起着重要的作用。因此，公司的各种决策都受到CEO权力和影响力的影响。此外，CEO的权力和影响力对公司业绩的影响取决于收益和成本的比较优势。因此，本研究对CEO权力、审计费用与企业成长机会之间的关系进行了研究。本研究的统计对象为德黑兰证券交易所上市公司，研究期为2011年至2020年。为了检验研究假设，采用系统淘汰法选取了77家企业。为了检验假设，使用面板数据，并使用多元回归估计变量之间的关系。结果表明，CEO权力(审计费用)与企业成长机会之间存在负(正)向显著关系。此外，CEO权力对审计费用与企业成长机会之间的关系具有显著的调节作用。研究结果可以弥补这一领域的研究空白，对管理者、投资者和资本市场立法者的决策有一定的参考价值。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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New Challenges in Accounting and Finance

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