Climate risk and audit fees : An international study
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
Original language | English |
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Pages (from-to) | 4989-5025 |
Number of pages | 37 |
Journal / Publication | Accounting and Finance |
Volume | 63 |
Issue number | 5 |
Online published | 2 Jun 2023 |
Publication status | Published - Dec 2023 |
Link(s)
Abstract
Using a comprehensive global sample, we find that climate risk positively relates to audit fees. Specifically, auditors charge higher fee premiums when firms are located in countries with more stringent auditing regulations, higher information opacity and less adaptive capacity for climate risk. Audit fee premiums are also higher when firms are incentivised to manipulate earnings, less important to auditors, and audited by short-tenured and industry-specialised auditors. Our study provides worldwide evidence that climate risk induces more earnings management and increases the efforts of auditors in the auditing process, resulting in higher audit fees. © 2023 Accounting and Finance Association of Australia and New Zealand.
Research Area(s)
- audit fees, climate risk, international evidence
Citation Format(s)
Climate risk and audit fees: An international study. / Yu, Minfeng; Si, Yi; Tian, Gaoliang et al.
In: Accounting and Finance, Vol. 63, No. 5, 12.2023, p. 4989-5025.
In: Accounting and Finance, Vol. 63, No. 5, 12.2023, p. 4989-5025.
Research output: Journal Publications and Reviews › RGC 21 - Publication in refereed journal › peer-review