FDI characteristics, industry homogeneity, and audit fees in Japanese multinationals

IF 2.9 3区经济学 Q2 BUSINESS, FINANCE

Journal of Multinational Financial Management Pub Date : 2021-09-01 DOI:10.1016/j.mulfin.2021.100678

Junjian Gu

引用次数: 3

Abstract

We examine the effects of FDI characteristics on audit fees and the influence of industry homogeneity on these effects. Taking a sample of Japanese firms, we find that companies investing in a relatively high number of common law countries and developing countries exhibit relatively high audit fees. The more the total geographical distance between the client’s home and host countries, the higher the audit fees. Client industry homogeneity moderates these relationships. Cross-sectional analyses show that the relations are affected by audit scandals, financial and natural disasters, audit firm size, and client subsidiaries. The findings are robust to several sensitivity tests. Overall, we find that auditors charge audit fees based on their clients’ FDI characteristics. Our results help enrich our understanding of the determinants of audit fees, and lead to useful implications for auditors, regulators, and stakeholders.

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外商直接投资特征、行业同质化与日本跨国公司的审计费用

我们考察了FDI特征对审计费用的影响以及行业同质性对这些影响的影响。以日本公司为样本，我们发现在英美法系国家和发展中国家投资的公司审计费用相对较高。客户所在国家与东道国之间的总地理距离越大，审计费用就越高。客户行业的同质性调节了这些关系。横断面分析表明，审计丑闻、金融灾害和自然灾害、审计事务所规模和客户子公司等因素均对二者的关系产生影响。这些发现在几项敏感性测试中都是可靠的。总体而言，我们发现审计师根据客户的FDI特征收取审计费用。我们的研究结果有助于丰富我们对审计费用决定因素的理解，并为审计师、监管机构和利益相关者带来有用的启示。

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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来源期刊

Journal of Multinational Financial Management BUSINESS, FINANCE-

CiteScore

7.30

自引率

4.80%

发文量

审稿时长

30 days

期刊介绍： International trade, financing and investments have grown at an extremely rapid pace in recent years, and the operations of corporations have become increasingly multinationalized. Corporate executives buying and selling goods and services, and making financing and investment decisions across national boundaries, have developed policies and procedures for managing cash flows denominated in foreign currencies. These policies and procedures, and the related managerial actions of executives, change as new relevant information becomes available. The purpose of the Journal of Multinational Financial Management is to publish rigorous, original articles dealing with the management of the multinational enterprise. Theoretical, conceptual, and empirical papers providing meaningful insights into the subject areas will be considered. The following topic areas, although not exhaustive, are representative of the coverage in this Journal. • Foreign exchange risk management • International capital budgeting • Forecasting exchange rates • Foreign direct investment • Hedging strategies • Cost of capital • Managing transaction exposure • Political risk assessment • International working capital management • International financial planning • International tax management • International diversification • Transfer pricing strategies • International liability management • International mergers.