Blockholder Heterogeneity and Audit Fees: ...
Document type :
Compte-rendu et recension critique d'ouvrage
Title :
Blockholder Heterogeneity and Audit Fees: Does Private Information Matter?
Author(s) :
Barroso, Raúl [Auteur]
Lille économie management - UMR 9221 [LEM]
Ben Ali, Chiraz [Auteur]
Lesage, Cédric [Auteur]
Oyon, Daniel [Auteur]
Université de Lausanne = University of Lausanne [UNIL]
Lille économie management - UMR 9221 [LEM]
Ben Ali, Chiraz [Auteur]
Lesage, Cédric [Auteur]
Oyon, Daniel [Auteur]
Université de Lausanne = University of Lausanne [UNIL]
Journal title :
Accounting in Europe
Pages :
1-36
Publisher :
Taylor & Francis (Routledge)
Publication date :
2022-07-24
ISSN :
1744-9480
English keyword(s) :
2022-07-24 Audit Fees ; Blockholder Heterogeneity ; Small Blockholders SBH ; Principal-Principal Conflict ; Agency Theory
HAL domain(s) :
Sciences de l'Homme et Société/Gestion et management
English abstract : [en]
We analyze the impact of Small Blockholders’ (SBH – with 5% to 10% of voting rights) heterogeneity and their access to private information on the demand for audit services. By promoting enhanced audit services, we expect ...
Show more >We analyze the impact of Small Blockholders’ (SBH – with 5% to 10% of voting rights) heterogeneity and their access to private information on the demand for audit services. By promoting enhanced audit services, we expect SBH to have a moderating effect on the relation between Large Blockholders (LBH – more than 10% of voting rights) and audit fees in a context of low shareholder protection. Drawn on Swiss public firm data over the 2002–2019 period, our results show that the presence of SBH flattens the concave relation between ownership concentration and audit fees found in prior studies. This moderating effect is mainly driven by the uninformed SBH, who given their lower – compared with informed SBH – access to private channels of information, are more likely to rely on audited public financial statements. Our findings contribute to the literature on the role of SBH in the company’s corporate governance.Show less >
Show more >We analyze the impact of Small Blockholders’ (SBH – with 5% to 10% of voting rights) heterogeneity and their access to private information on the demand for audit services. By promoting enhanced audit services, we expect SBH to have a moderating effect on the relation between Large Blockholders (LBH – more than 10% of voting rights) and audit fees in a context of low shareholder protection. Drawn on Swiss public firm data over the 2002–2019 period, our results show that the presence of SBH flattens the concave relation between ownership concentration and audit fees found in prior studies. This moderating effect is mainly driven by the uninformed SBH, who given their lower – compared with informed SBH – access to private channels of information, are more likely to rely on audited public financial statements. Our findings contribute to the literature on the role of SBH in the company’s corporate governance.Show less >
Language :
Anglais
Popular science :
Non
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