Institutional investors, political connection and audit quality in Malaysia
Purpose – The purpose of this paper is to extend the audit pricing literature by examining whetherinstitutional investors and political connection are associated with higher audit fees.Design/methodology/approach – Both descriptive and multivariate analyses are employed toaddress the research object...
| Main Authors: | , , , |
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| Format: | Journal Article |
| Published: |
Emerald
2009
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| Online Access: | http://hdl.handle.net/20.500.11937/31214 |
| _version_ | 1848753314875834368 |
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| author | Abdul Wahab, Effiezal Aswadi Zain, M. James, K. Haron, H. |
| author_facet | Abdul Wahab, Effiezal Aswadi Zain, M. James, K. Haron, H. |
| author_sort | Abdul Wahab, Effiezal Aswadi |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Purpose – The purpose of this paper is to extend the audit pricing literature by examining whetherinstitutional investors and political connection are associated with higher audit fees.Design/methodology/approach – Both descriptive and multivariate analyses are employed toaddress the research objectives. In addition, the authors use panel data to control for bothheterocedasticity and contemporaneous correlations in each cross-section.Findings – Based on a panel analysis of 390 Malaysian firms from 1999 to 2003, a positiverelationship between institutional ownership and audit fees is found, although the economic impact isminimal. Further, the authors find that audit fees are higher for politically connected firms.Research limitations/implications – A thorough examination on the role of political connection ismuch warranted to provide a better understanding on such connection influences the audit market.Originality/value – This paper provides an alternative view on the role of political connection, andon how they influence the audit market |
| first_indexed | 2025-11-14T08:22:33Z |
| format | Journal Article |
| id | curtin-20.500.11937-31214 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T08:22:33Z |
| publishDate | 2009 |
| publisher | Emerald |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-312142017-02-28T01:38:22Z Institutional investors, political connection and audit quality in Malaysia Abdul Wahab, Effiezal Aswadi Zain, M. James, K. Haron, H. Purpose – The purpose of this paper is to extend the audit pricing literature by examining whetherinstitutional investors and political connection are associated with higher audit fees.Design/methodology/approach – Both descriptive and multivariate analyses are employed toaddress the research objectives. In addition, the authors use panel data to control for bothheterocedasticity and contemporaneous correlations in each cross-section.Findings – Based on a panel analysis of 390 Malaysian firms from 1999 to 2003, a positiverelationship between institutional ownership and audit fees is found, although the economic impact isminimal. Further, the authors find that audit fees are higher for politically connected firms.Research limitations/implications – A thorough examination on the role of political connection ismuch warranted to provide a better understanding on such connection influences the audit market.Originality/value – This paper provides an alternative view on the role of political connection, andon how they influence the audit market 2009 Journal Article http://hdl.handle.net/20.500.11937/31214 Emerald restricted |
| spellingShingle | Abdul Wahab, Effiezal Aswadi Zain, M. James, K. Haron, H. Institutional investors, political connection and audit quality in Malaysia |
| title | Institutional investors, political connection and audit quality in Malaysia |
| title_full | Institutional investors, political connection and audit quality in Malaysia |
| title_fullStr | Institutional investors, political connection and audit quality in Malaysia |
| title_full_unstemmed | Institutional investors, political connection and audit quality in Malaysia |
| title_short | Institutional investors, political connection and audit quality in Malaysia |
| title_sort | institutional investors, political connection and audit quality in malaysia |
| url | http://hdl.handle.net/20.500.11937/31214 |