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Do political connections affect the role of independent audit committees and CEO Duality? Some evidence from Malaysian audit pricing

journal contribution
posted on 2011-12-01, 00:00 authored by M Bliss, Ferdinand Gul, A Majid
This study examines whether political connection to firms affects the association between audit committee independence and demand for higher quality audits. In line with Carcello et al. (2002), our findings show that there is a positive association between audit committee independence and audit fees thus supporting the hypothesis that more independent audit committees demand higher audit quality. However, we find that this relationship is weaker for politically connected (PCON) firms suggesting that the independence of audit committees in Malaysian PCON firms may be compromised. Additionally, we provide evidence that PCON firms that have CEO duality are perceived by audit firms as being of higher risk than CEO duality firms without political connection.

History

Journal

Journal of contemporary accounting and economics

Volume

7

Issue

2

Pagination

82 - 98

Publisher

Elsevier

Location

Amsterdam, The Netherlands

ISSN

1815-5669

eISSN

2352-3298

Language

eng

Publication classification

C1.1 Refereed article in a scholarly journal; C Journal article

Copyright notice

2011, Elsevier

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