Work

Does municipal ownership affect audit fees?

Year: 2018

Type: article

Abstract: This study analyses whether municipal ownership affects and determines audit fees. Our model of the determinants of audit fees was tested on data from 249 Swedish municipal and 240 private corporations within the real estate industry, thus extending the study of audit fees to hybrid organizations. The statistical analysis was followed up with interviews of five partners from five different audit firms. The result of the study shows that municipal corporations are paying significantly lower audit fees than equivalent private corporations. This finding is primarily explained by lower perceived business risk and by the fact that municipalities are able to push prices by coordinating procurements of audit services.

Source: Journal of Management & Governance

DOI: 10.1007/s10997-018-9438-4

Authors: Linus Axén, Torbjörn Tagesson, Denis Shcherbinin, Azra Custovic, Anna Ojdanic

Institution: Linköping University

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $3,290