No dia 17 de abril, James Kohlmeyer iii apresenta o estudo “Audit pricing and the Turnover of Board Members and Executives“.
Entrada livre.
Abstract:
Purpose – This study examines the association between audit fees and the turnover of board members and executives. In so doing, we seek to provide insights into the risk perceptions of auditors.
Design/Method – We develop a regression model of audit fees that includes board and executive turnover as explanatory variables. We use a large sample of firms with data collected over several years to estimate the parameters in the model.
Findings – We find that voluntary resignations of board members, and not other types of board departures, are associated with higher audit fees. Regarding CEO turnover, forced departures, and not other types of turnover, are associated with larger audit fees. CFO turnovers exhibit the same pattern. We argue that, for auditors, voluntary board turnover and forced executive turnover are signs of increased business risk of the client, which, in turn, leads to greater concerns regarding audit risk
Practical – We argue that a better understanding of auditor risk perceptions may benefit several groups: investors; professional rule making bodies; and regulators. Originality – The association between different types of board departures and audit fees has not been previously examined to our knowledge. While a prior study has investigated the association between forced CEO turnover and audit fees, no studies, to our knowledge, have examined forced CFO departures. Further, we find that forced CFO turnover has a greater association with audit fees than does forced CEO turnover.