Audit Pricing and Corporate Whistleblower Governance: Evidence from Australian Financial Firms

Audit Pricing and Corporate Whistleblower Governance: Evidence from Australian Financial Firms

We investigate the relationship between firm whistleblower governance and audit pricing of Australian listed financial firms over the 2008–2018 period. Consistent with agency and organisational justice theoretical tenets, we find that firms that exhibit stronger whistleblower governance incur lower...

Full description

Bibliographic Details
Main Authors: Eulaiwi, Baban, Al-Hadi, Ahmed, Duong, Lien, Clark, Keira, Taylor, Grantley, Perrin, Brian
Format: Journal Article
Published: Wiley-Blackwell 2021
Online Access:http://hdl.handle.net/20.500.11937/86769
Description
Summary:We investigate the relationship between firm whistleblower governance and audit pricing of Australian listed financial firms over the 2008–2018 period. Consistent with agency and organisational justice theoretical tenets, we find that firms that exhibit stronger whistleblower governance incur lower audit fees. We find that the negative association between strength in whistleblower governance and firms' audit fees is more pronounced for firms that are exposed to increased litigation risk, and for firms having an anti-fraud policy. Our results are robust to endogeneity tests including difference-in-difference (DID), two-stage least squares (2SLS) and propensity score matching (PSM) analyses.

Similar Items