Do political connections affect the role of independent audit committees and CEO Duality? Some evidence from Malaysian audit pricing

  • Bliss M
  • Gul F
  • Majid A
  • 100

    Readers

    Mendeley users who have this article in their library.
  • 20

    Citations

    Citations of this article.

Abstract

This study examines whether political connection to firms affects the association between audit committee independence and demand for higher quality audits. In line with Carcello et al. (2002), our findings show that there is a positive association between audit committee independence and audit fees thus supporting the hypothesis that more independent audit committees demand higher audit quality. However, we find that this relationship is weaker for politically connected (PCON) firms suggesting that the independence of audit committees in Malaysian PCON firms may be compromised. Additionally, we provide evidence that PCON firms that have CEO duality are perceived by audit firms as being of higher risk than CEO duality firms without political connection. © 2011 Elsevier Ltd.

Author-supplied keywords

  • Audit committees
  • Audit fee pricing
  • CEO duality
  • Political connection

Get free article suggestions today

Mendeley saves you time finding and organizing research

Sign up here
Already have an account ?Sign in

Find this document

Authors

Cite this document

Choose a citation style from the tabs below

Save time finding and organizing research with Mendeley

Sign up for free