Research ArticleOpen AccessGoogle Scholar indexed
Chairman’s Cultural Background Characteristics and Audit Fees: Based on Chinese Listed Companies
Accounting Department, Management School, Jinan University, Guangzhou, China
- 1 Accounting Department, Management School, Jinan University, Guangzhou, China
Open Journal of Accounting·Volume 07 (2018)·Pages 107–124·Published 1 March 2018·DOI10.4236/ojacct.2018.72008
Copy link · social · email
Abstract
Based on the panel data of Chinese listed companies spanning the period 1999-2015, this paper investigates the effects of Chairman’s cultural background characteristics on audit fees. The results show that Chairman’s cultural background characteristics significantly affect the company’s audit fees, the Chairman with the nomadic culture background compared with who with cultivation culture background tends to pay lower audit fees, and the relationship above is enhanced when the company’s Chairman and CEO is the same person. Furthermore, this paper finds that the bigger the board size, or the longer the Chairman’s tenure, the lower the audit fees the company whose Chairman has the nomadic culture background will pay.
KeywordsCultural Background CharacteristicsAudit FeesChairman and CEO DualityBoard sizeTenure
- Hambrick, D.C. and Mason, P.A. (1984) Upper Echelons: Organization as a Reflection of Its Managers. Academy Management Review, 9, 193-206.
- Malmendier, U. and Tate, G. (2005) Does Overconfidence Affect Corporate Investment? CEO Overconfidence Measures Revisited. European Financial Management, 11, 649-659. https://doi.org/10.1111/j.1354-7798.2005.00302.x
- Chen, J. and Zhou, F. (2016) Executive’s Background Characteristics, Internal Control and Audit Fees. Journal of Shanxi Finance and Economics University, 6, 88-100.
- Simunic, A.D. (1980) The Pricing of Audit Services: Theory and Evidence. Journal of Accounting Research, 18, 161-190. https://doi.org/10.2307/2490397
- Bertrand, M. and Schoar, A. (2003) Managing with Style: The Effect of Managers on Firm Policies. Quarterly Journal of Economics, 118, 1169-1208. https://doi.org/10.1162/003355303322552775
- North, D.C. (1990) Institutions, Institutional Change and Economic Performance. Cambridge University Press, Cambridge, 151-155. https://doi.org/10.1017/CBO9780511808678
- Sekely, W.S. and Collins, J.M. (1988) Cultural Influences on International Capital Structure. Journal of International Business Studies, 19, 87-100. https://doi.org/10.1057/palgrave.jibs.8490376
- Aggarwal, R. and Goodell, J.W. (2009) Markets and Institutions in Financial Intermediation: National Characteristics as Determinants. Journal of Banking & Finance, 33, 1770-1780. https://doi.org/10.1016/j.jbankfin.2009.03.004
- Ji, L.J., Nisbett, R.E. and Su, Y. (2001) Culture, Change, and Prediction. Psychological Science, 12, 450. https://doi.org/10.1111/1467-9280.00384
- Ferris, S.P., Jayaraman, N. and Sabherwal, S. (2013) CEO Overconfidence and International Merger and Acquisition Activity. Journal of Financial and Quantitative Analysis, 48, 137-164. https://doi.org/10.1017/S0022109013000069
- Kanagaretnam, K., Lim, C.Y. and Lobo, G.J. (2014) Influence of National Culture on Accounting Conservatism and Risk-Taking in the Banking Industry. Accounting Review, 89, 1115-1149. https://doi.org/10.2308/accr-50682
- He, W. and Liu, W. (2015) Enterprise Manager’s Ability and Audit Fees. Accounting Research, 1, 89-97.
- Næss, M.W. (2003) Living with Risk and Uncertainty: The Case of the Nomadic Pastoralists in the Aru Basin, Tibet. Experimental & Applied Acarology, 56, 391-401.