Auditor's Gender and Audit Fees

Ittonen, Kim; Peni, Emilia

doi:10.1111/j.1099-1123.2011.00438.x

Cited by 120 publications

(73 citation statements)

References 46 publications

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“…The findings are somewhat consistent with our prediction that the presence of women directors on firms' board of directors is less likely to utilise accretive share buyback to manage EPS. The result is also slightly consistent with the argument that women are more conservative and less risk tolerance than a man in making decisions related to managing earnings (Ittonen & Peni, 2012;Krishnan & Parsons, 2008;Peni & Vähämaa, 2010). Practically, the results of this ISSN 1946-052X 2017 paper support the policy of the Malaysian government to increase the presence of women in decision-making positions to become 30 percent in both public and private sectors.…”

Section: Multivariate Analysissupporting

confidence: 77%

Women in Board of Directors and Real Earnings Management: Accretive Share Buyback in Malaysia

Alquhaif¹,

Latif²,

Chandren³

2017

AJFA

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Gender diversity of boards and reporting of earnings are two most debated issues in the Asian Journal of Finance & Accounting ISSN 1946-052X 2017 ajfa.macrothink.org 49 corporate world. In this context, the paper explores how the presence of women directors on the corporate board influence real earnings management through accretive buyback programs. Using a sample of 601 firms' observations that engage in accretive share buyback from 2010-2015, the findings reveal that existence of women directors on the board is associated with less engagement in accretive share buyback activities. We further find that firms with a higher number of independent directors are less likely to practice real earnings management through accretive buyback programs. Our paper contributes to the debate on gender diversity on boards and its influence on the utilisation of accretive buyback programs as a tool to real earnings management.

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Section: Multivariate Analysissupporting

confidence: 77%

Women in Board of Directors and Real Earnings Management: Accretive Share Buyback in Malaysia

Alquhaif¹,

Latif²,

Chandren³

2017

AJFA

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“…Ittonen and Peni (2012) found that female auditors in Denmark, Sweden and Finland charged a higher price for audit services than male auditors. We also expect that auditors with longer experience of the audit profession could charge a higher price than less experienced auditors.…”

Section: Audit and Non-audit Feesmentioning

confidence: 96%

“…The effect of AIC characteristics on audit quality has recently received substantial attention in the audit literature (Goodwin, 2012;Ittonen and Peni, 2012;Gul et al, 2013;Ittonen et al, 2013;Sundgren and Svanström, 2014). Ittonen and Peni (2012) found that female auditors in Denmark, Sweden and Finland charged a higher price for audit services than male auditors.…”

Section: Audit and Non-audit Feesmentioning

confidence: 99%

The impact of the global financial crisis on audit and non-audit fees

Alexeyeva

Svanström

2015

Managerial Auditing Journal

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Purpose – The paper aims to investigate audit and non-audit fees during the global financial crisis (GFC) in an environment that is relatively sparsely regulated with regard to the provision of non-audit services. Design/methodology/approach – Audit and non-audit fees were studied during pre-GFC (2006-2007), GFC (2008-2009) and post-GFC (2010-2011) periods. Findings – During the GFC, Swedish companies benefited from an increase in sales and total assets, although return on assets decreased. In this setting, the auditors charged higher audit fees compared with the pre-GFC period, despite the absence of increased audit reporting lags. A significant increase in audit fees continued during the post-crisis periods with auditors paying more attention to companies’ leverage and whether they report losses. At the same time, the companies spent less on non-audit services. Research limitations/implications – This study is limited to companies from Sweden, which was less affected by the GFC. Practical implications – GFC auditors are able to charge higher audit fees to public companies including those that are well-performing during financial crises, and they are also able to increase the audit fees in the post-crisis period. This implies that auditors put in extra audit effort to compensate for higher risk, or that they are good at negotiating prices with their clients. However, non-audit fees decreased during the same period, implying that the demand for these services drops under financial instability. Originality/value – The study highlights auditors’ behavior in the liberal economic environment and it studies both audit fees and non-audit fees before GFC, during GFC and after the GFC. The GFC appears to have provided audit firms the opportunity to extract higher audit fees. Our findings are of interest to managers, auditors and regulators.

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“…Two relevant studies investigating companies in Belgium and in three Nordic countries found that women audit partners earn higher audit fees, perhaps due to higher independence (Hardies, Breesch, & Branson, 2010), better diligence, and less overconfidence (Ittonen and Peni, 2012). These findings suggest that sex stereotypes may vary across cultures and that discrimination against women in the workplace is less severe in Northern European countries as compared to Taiwan, where Confucianism advocates the masculine social value that women should stay at home and be responsible for the household, while men are the breadwinners and leaders of the family (Chan et al, 2002;Yang et al, 2013).…”

Section: Resultsmentioning

confidence: 99%

Lower audit fees for women audit partners in Taiwan and why

Huang

Chiou

Huang

et al. 2015

Asia Pacific Management Review

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a b s t r a c tWe investigate whether women audit partners earn lower audit fees than their men colleagues. By examining 2002e2011 fee data for audit engagements in Taiwan, where the names of signing audit partners are disclosed, we find that audit engagements with women audit partners are related to significantly lower audit fees than those with men counterparts. Furthermore, we document that such fee difference is aggravated in the industries with fewer women audit partners, cannot be explained by the differences in audit quality and audit reporting lags, and is robust to controlling for firm fixed effects.Our finding provides evidence to support the existence of fee discrimination against women audit partners in Taiwan's auditing industry. Our results should be of interests to audit firms with regard to human resource decisions.

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Auditor's Gender and Audit Fees

Cited by 120 publications

References 46 publications

Women in Board of Directors and Real Earnings Management: Accretive Share Buyback in Malaysia

Women in Board of Directors and Real Earnings Management: Accretive Share Buyback in Malaysia

The impact of the global financial crisis on audit and non-audit fees

Lower audit fees for women audit partners in Taiwan and why

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