Abdulmalik, Olarinoye Salau and Che Ahmad, Ayoib (2016) The effect of board composition on auditor's risk assessment in Nigeria. Asia-Pacific Management Accounting Journal, 11 (2). pp. 107-127. ISSN 1675-3194
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Abstract
This study examines the link between outside directors and audit fees.The study used data from 94 non-financial-listed companies on the Nigerian Stock Exchange from 2008 to 2013.The study used cross-sectional time-series feasible generalized least squares (FGLS) regression, which explains heteroscedasticity and autocorrelation in testing the effect of non-independent non-executive directors and independent non-executive directors on auditor pricing decisions in Nigeria.Our result indicates that the proportion of non-independent non-executive directors on boards has a negative relationship with audit fees, whereas the proportion of independent non-executive directors has a positive relationship with audit fees. Further analysis reveals that block shareholding moderates the effect between outside directors and audit fees. These findings have both policy and practical implications on corporate governance. For instance, future regulatory reforms can consider collaborative board models instead of the insistence on more independent director presence in the boardroom.Copyright of Asia-Pacific Management Accounting Journal is the property of Universiti Teknologi Mara Represented by Accounting Research Institute and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.
Item Type: | Article |
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Uncontrolled Keywords: | grey director, independent director, audit fees, corporate governance, Nigeria |
Subjects: | H Social Sciences > HF Commerce > HF5601 Accounting |
Divisions: | Tunku Puteri Intan Safinaz School of Accountancy (TISSA) |
Depositing User: | Mrs. Norazmilah Yaakub |
Date Deposited: | 15 Mar 2018 01:31 |
Last Modified: | 15 Mar 2018 01:31 |
URI: | https://repo.uum.edu.my/id/eprint/23595 |
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