State-owned enterprises' board characteristics and audit fees: an international perspective in view of economic freedom, political democracy and protection of minority shareholders

IF 2.3 Q2 BUSINESS, FINANCE

Asian Review of Accounting Pub Date : 2023-02-28 DOI:10.1108/ara-09-2022-0206

Iman Shaat, Husam Aldamen, Kim Kercher, Keith Duncan

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引用次数: 0

Abstract

PurposeThe paper examines the relationship between board effectiveness and audit fees for state-owned enterprises (SOEs). Furthermore, given the unique nature of SOEs, the paper assesses country-level influences, such as economic freedom, political democracy and protection of minority shareholders, which can impact board effectiveness and audit fees.Design/methodology/approachA combination of two-stage and ordinary least squares regression is used to examine the board characteristics-audit fee relationship for SOEs in a multinational setting during the period from 2016 to 2018.FindingsThe results indicate that board characteristics that represent a high level of effectiveness are associated with higher audit fees in SOEs. Furthermore, the findings suggest SOE's operating in countries evidencing medium levels of democracy and economic freedom and medium to high levels of protection of minority shareholders may be motivated to reduce agency conflicts by promoting accountability and transparency, thereby demanding increasing levels of corporate governance, monitoring and audit quality, thereby increasing audit fees.Practical implicationsThe results provide further support for the OECD (2015) guidelines promoting the use of high-quality external audits in SOEs.Originality/valueAs a result of the scarceness of research in this area, the current study extends the literature by examining the role of corporate governance and audit fees in SOEs, while examining the influence of economic freedom, political democracy and protection of minority shareholders.

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国有企业董事会特征与审计费用:经济自由、政治民主与中小股东保护视角下的国际视野

目的研究国有企业董事会效率与审计费用的关系。此外，鉴于国有企业的独特性质，本文评估了国家层面的影响，如经济自由、政治民主和对少数股东的保护，这些影响可能会影响董事会的有效性和审计费用。设计/方法/方法使用两阶段和普通最小二乘回归相结合的方法来检验2016年至2018年期间跨国环境中国有企业董事会特征审计费用关系。结果表明，代表高水平有效性的董事会特征与国有企业较高的审计费用有关。此外，研究结果表明，国有企业在民主和经济自由程度中等、对少数股东保护程度中等至较高的国家运营，可能是为了通过促进问责制和透明度来减少机构冲突，从而要求提高公司治理、监督和审计质量，从而提高审计费用。实际含义这些结果为经合组织（2015）促进在国有企业中使用高质量外部审计的指导方针提供了进一步的支持。原始性/价值由于该领域的研究很少，目前的研究通过考察公司治理和审计费用在国有企业的作用来扩展文献，同时考察经济自由的影响，政治民主和保护少数股东。

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来源期刊

Asian Review of Accounting BUSINESS, FINANCE-

CiteScore

3.20

自引率

25.00%

发文量

期刊介绍： Covering various fields of accounting, Asian Review of Accounting publishes research papers, commentary notes, review papers and practitioner oriented articles that address significant international issues as well as those that focus on Asia Pacific in particular.Coverage includes but is not limited to: -Financial accounting -Managerial accounting -Auditing -Taxation -Accounting information systems -Social and environmental accounting -Accounting education Perspectives or viewpoints arising from regional, national or international focus, a private or public sector information need, or a market-perspective or social and environmental perspective are greatly welcomed. Manuscripts that present viewpoints should address issues of wide interest among accounting scholars internationally and those in Asia Pacific in particular.