Governance structure and external audit price: evidence from an emerging economy

This study provides new evidence on the relationship between external audit price and corporate governance of the largest (based on market capitalization) 100 listed firms on both the main and second board of the Bursa Malaysia (BMB) (previously known as the Kuala Lumpur Stock Exchange). The finding...

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Main Authors: Muhamad Sori, Zulkarnain, Mohamad, Shamsher
Format: Article
Language:English
Published: Faculty of Economics and Management, Universiti Putra Malaysia 2008
Online Access:http://psasir.upm.edu.my/id/eprint/39434/
http://psasir.upm.edu.my/id/eprint/39434/1/39434.pdf
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author Muhamad Sori, Zulkarnain
Mohamad, Shamsher
author_facet Muhamad Sori, Zulkarnain
Mohamad, Shamsher
author_sort Muhamad Sori, Zulkarnain
building UPM Institutional Repository
collection Online Access
description This study provides new evidence on the relationship between external audit price and corporate governance of the largest (based on market capitalization) 100 listed firms on both the main and second board of the Bursa Malaysia (BMB) (previously known as the Kuala Lumpur Stock Exchange). The findings show that for main board companies, external audit price is positively and significantly associated with corporate size, complexity and internal governance variable (i.e. director’s remuneration). For the second board firms, complexity, corporate size and internal governance variables (i.e. proportion of non-executive directors to total directors) were important determinants of external audit pricing. External audit price had a significant negative relationship with individual shareholders ownership for both main and second board companies, and companies’ age for companies listed on the second board.
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spelling upm-394342015-08-03T03:55:52Z http://psasir.upm.edu.my/id/eprint/39434/ Governance structure and external audit price: evidence from an emerging economy Muhamad Sori, Zulkarnain Mohamad, Shamsher This study provides new evidence on the relationship between external audit price and corporate governance of the largest (based on market capitalization) 100 listed firms on both the main and second board of the Bursa Malaysia (BMB) (previously known as the Kuala Lumpur Stock Exchange). The findings show that for main board companies, external audit price is positively and significantly associated with corporate size, complexity and internal governance variable (i.e. director’s remuneration). For the second board firms, complexity, corporate size and internal governance variables (i.e. proportion of non-executive directors to total directors) were important determinants of external audit pricing. External audit price had a significant negative relationship with individual shareholders ownership for both main and second board companies, and companies’ age for companies listed on the second board. Faculty of Economics and Management, Universiti Putra Malaysia 2008-12 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/39434/1/39434.pdf Muhamad Sori, Zulkarnain and Mohamad, Shamsher (2008) Governance structure and external audit price: evidence from an emerging economy. International Journal of Economics and Management, 2 (2). pp. 259-279. ISSN 1823-836X http://econ.upm.edu.my/ijem/vol2_no2.htm
spellingShingle Muhamad Sori, Zulkarnain
Mohamad, Shamsher
Governance structure and external audit price: evidence from an emerging economy
title Governance structure and external audit price: evidence from an emerging economy
title_full Governance structure and external audit price: evidence from an emerging economy
title_fullStr Governance structure and external audit price: evidence from an emerging economy
title_full_unstemmed Governance structure and external audit price: evidence from an emerging economy
title_short Governance structure and external audit price: evidence from an emerging economy
title_sort governance structure and external audit price: evidence from an emerging economy
url http://psasir.upm.edu.my/id/eprint/39434/
http://psasir.upm.edu.my/id/eprint/39434/
http://psasir.upm.edu.my/id/eprint/39434/1/39434.pdf