The association between audit committee and board of director effectiveness and changes in the nonaudit fee ratio

Ho Young Lee

doi:10.1080/09603100601166887

The association between audit committee and board of director effectiveness and changes in the nonaudit fee ratio

Ho Young Lee

Department of Business Administration

Research output: Contribution to journal › Article › peer-review

5 Citations (Scopus)

Abstract

Investors and the US SEC are interested in the impact of nonaudit fees on the economic bonding between auditors and their clients and in the role of audit committees in monitoring this economic bonding. The results of this study show a negative association between audit committee effectiveness and changes in the nonaudit to audit fee ratio, suggesting that effective audit committees generally minimize the nonaudit fee ratio in order to enhance auditor independence. In addition, the results of this study suggest that effective Board of Directors also limit increases in the nonaudit fee ratio, possibly due to their own concerns over auditor independence.

Original language	English
Pages (from-to)	629-638
Number of pages	10
Journal	Applied Financial Economics
Volume	18
Issue number	8
DOIs	https://doi.org/10.1080/09603100601166887
Publication status	Published - 2008 May

Bibliographical note

Funding Information:
The author thanks V. Mande, B. Kealey, R. Ortman and workshop participants at the University of Nebraska-Omaha for their valuable comments. This study is financially supported in part by Yonsei University.

All Science Journal Classification (ASJC) codes

Finance
Economics and Econometrics

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The association between audit committee and board of director effectiveness and changes in the nonaudit fee ratio

Abstract

Bibliographical note

All Science Journal Classification (ASJC) codes

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