Abstract
This paper examines the impact of family control on audit effort and audit risk as proxied by audit fees, the relation between the quality of the audit committee (AC) and audit fees, and how family control influences the association between AC quality and audit fees. Using a sample of Hong Kong companies from the 2005/06 fiscal year, we find that family-controlled firms have lower audit fees. The results also show a positive association between AC quality and audit fees in Hong Kong. Moreover, the association of higher AC quality with higher audit fees is stronger in family-controlled firms than in non-family-controlled firms. Collectively, our findings suggest that audit committees in family-controlled firms require a higher degree of external audit effort than do those in non-familycontrolled firms.
| Original language | English |
|---|---|
| Pages (from-to) | 73-85 |
| Journal | Corporate Ownership and Control |
| Volume | 7 |
| Issue number | 3 A |
| DOIs | |
| Publication status | Published - 2010 |
Research Keywords
- Audit committee
- Audit fees
- Audit risk
- Family control
- Hong Kong market
Publisher's Copyright Statement
- This is an open access journal which means that all content is freely available without charge to the user or his/her institution. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles, or use them for any other lawful purpose, without asking prior permission from the publisher or the author. This is in accordance with the BOAI definition of open access.
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