FDI characteristics, industry homogeneity, and audit fees in Japanese multinationals
| Autor: | Junjian Gu |
|---|---|
| Rok vydání: | 2021 |
| Předmět: |
040101 forestry
Economics and Econometrics 050208 finance business.industry Common law 05 social sciences Subsidiary Developing country Accounting Sample (statistics) 04 agricultural and veterinary sciences Audit Foreign direct investment Geographical distance health services administration 0502 economics and business 0401 agriculture forestry and fisheries Natural disaster business Finance |
| Zdroj: | Journal of Multinational Financial Management. 61:100678 |
| ISSN: | 1042-444X |
| DOI: | 10.1016/j.mulfin.2021.100678 |
| Popis: | 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. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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