Audit fees in Malaysia: does corporate governance matter?

Wahab, Effiezal Aswadi Abdul and Zain, Mazlina Mat and James, Kieran (2011) Audit fees in Malaysia: does corporate governance matter? Asian Academy of Management Journal of Accounting and Finance, 7 (1). pp. 1-27. ISSN 1823-4992

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Abstract

This study examines the relationship between corporate governance and audit fees during the period before and after the enactment of the Malaysian Code of Corporate Governance (MCCG). Our panel analysis of 379 firms during the 1999-2002 period reveals a significant and positive relationship between corporate governance and audit fees. However, the relationship becomes weaker after 2001, suggesting that the MCCG reduced firms' control and inherent risk, thus ultimately contributing to reduced audit effort in Malaysia. Our findings remain viable after we control for political connections unique to Malaysia's capital market.

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Item Type:	Article (Commonwealth Reporting Category C)
Refereed:	Yes
Item Status:	Live Archive
Additional Information:	Authors retain the following rights:... (iii) make any version of the Contribution available on digital repositories; provided in each case PENERBIT USM (and Publication) is cited as the first/forthcoming publisher of the Contribution and the Author(s) accurately distinguish any modified version of the Contribution from that published or to be published by PENERBIT USM.
Faculty/School / Institute/Centre:	Historic - Faculty of Business and Law - School of Accounting, Economics and Finance (1 Jan 2011 - 30 Jun 2013)
Faculty/School / Institute/Centre:	Historic - Faculty of Business and Law - School of Accounting, Economics and Finance (1 Jan 2011 - 30 Jun 2013)
Date Deposited:	12 Jan 2012 06:17
Last Modified:	26 Aug 2014 03:37
Uncontrolled Keywords:	audit fees; corporate governance; corporate governance reform; MCCG; political connection
Fields of Research (2008):	22 Philosophy and Religious Studies > 2201 Applied Ethics > 220102 Business Ethics 16 Studies in Human Society > 1606 Political Science > 160609 Political Theory and Political Philosophy 15 Commerce, Management, Tourism and Services > 1501 Accounting, Auditing and Accountability > 150102 Auditing and Accountability
Fields of Research (2020):	50 PHILOSOPHY AND RELIGIOUS STUDIES > 5001 Applied ethics > 500102 Business ethics 44 HUMAN SOCIETY > 4408 Political science > 440811 Political theory and political philosophy 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3501 Accounting, auditing and accountability > 350102 Auditing and accountability
Socio-Economic Objectives (2008):	B Economic Development > 91 Economic Framework > 9102 Microeconomics > 910209 Preference, Behaviour and Welfare
URI:	http://eprints.usq.edu.au/id/eprint/20002

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