Determinants of Audit Fees and Non-audit Fees for Listed UK Companies

This study mainly examines the characteristics of financial distress, earnings management, executive remuneration and low balling simultaneously determine audit and non-audit fees. Single-equation models are utilized in this research for both audit and non-audit fee models by using a sample of liste...

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Bibliographic Details
Main Author: Zhu, Yan
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2010
Online Access:https://eprints.nottingham.ac.uk/23686/
Description
Summary:This study mainly examines the characteristics of financial distress, earnings management, executive remuneration and low balling simultaneously determine audit and non-audit fees. Single-equation models are utilized in this research for both audit and non-audit fee models by using a sample of listed UK companies in FTSE for the period 2001-2010. The empirical results reveal that financial distress has negative association with non-audit fees, and cannot fully explain audit fee model; earnings management is negatively related to the audit and non-audit fees; executive remuneration is significantly and positively associated with audit fees, but fails to explain the non-audit fee model; low balling is significantly and negatively corresponding with both audit and non-audit fees. Keywords: Audit Fees; Non-audit Fees; Financial Distress; Earnings Management; Executive Remuneration; Low Balling