Political connections: A threat to auditor independence?
Purpose: The purpose of this paper is to examine whether political connections further impair auditor independence by investigating the relationship between non-audit fees and audit fees and as to whether political connections moderate such relationship. Design/methodology/approach: This study emplo...
| Main Authors: | , , |
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| Format: | Journal Article |
| Published: |
Emerald
2015
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| Online Access: | http://hdl.handle.net/20.500.11937/45797 |
| _version_ | 1848757384754757632 |
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| author | Abdul Wahab, Effiezal Aswadi Jain, M. Rahman, A. |
| author_facet | Abdul Wahab, Effiezal Aswadi Jain, M. Rahman, A. |
| author_sort | Abdul Wahab, Effiezal Aswadi |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | Purpose: The purpose of this paper is to examine whether political connections further impair auditor independence by investigating the relationship between non-audit fees and audit fees and as to whether political connections moderate such relationship. Design/methodology/approach: This study employs panel regression analysis. The panel data set consists of 379 firm-year observations for three years from year 2001 to 2003. Findings: Based on 379 firm-year observations for the period of 2001-2003, grounded on two proxies of political connections namely politically connected firms and the proportion of Bumiputras directors, the authors find a positive and significant relationship between non-audit fees and audit fees, and the relationship becomes weaker, only for Bumiputra-dominated firms connected firms. Originality/value: This study contributes to the extant literature by examining the role of political connections in the context of auditor independence. In addition, this study is conducted in Malaysia, which provides a unique institutional environment with the existence of political connections that is built on ethnic grounds. |
| first_indexed | 2025-11-14T09:27:15Z |
| format | Journal Article |
| id | curtin-20.500.11937-45797 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T09:27:15Z |
| publishDate | 2015 |
| publisher | Emerald |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-457972017-12-13T01:39:36Z Political connections: A threat to auditor independence? Abdul Wahab, Effiezal Aswadi Jain, M. Rahman, A. Purpose: The purpose of this paper is to examine whether political connections further impair auditor independence by investigating the relationship between non-audit fees and audit fees and as to whether political connections moderate such relationship. Design/methodology/approach: This study employs panel regression analysis. The panel data set consists of 379 firm-year observations for three years from year 2001 to 2003. Findings: Based on 379 firm-year observations for the period of 2001-2003, grounded on two proxies of political connections namely politically connected firms and the proportion of Bumiputras directors, the authors find a positive and significant relationship between non-audit fees and audit fees, and the relationship becomes weaker, only for Bumiputra-dominated firms connected firms. Originality/value: This study contributes to the extant literature by examining the role of political connections in the context of auditor independence. In addition, this study is conducted in Malaysia, which provides a unique institutional environment with the existence of political connections that is built on ethnic grounds. 2015 Journal Article http://hdl.handle.net/20.500.11937/45797 10.1108/JAEE-03-2012-0013 Emerald fulltext |
| spellingShingle | Abdul Wahab, Effiezal Aswadi Jain, M. Rahman, A. Political connections: A threat to auditor independence? |
| title | Political connections: A threat to auditor independence? |
| title_full | Political connections: A threat to auditor independence? |
| title_fullStr | Political connections: A threat to auditor independence? |
| title_full_unstemmed | Political connections: A threat to auditor independence? |
| title_short | Political connections: A threat to auditor independence? |
| title_sort | political connections: a threat to auditor independence? |
| url | http://hdl.handle.net/20.500.11937/45797 |