Efficiency and audit fees: Evidence from the U.S. manufacturing firms/ Qian Long Kweh, Yee Chuann Chan and Wei Kang Wang

Qian, Long Kweh and Yee, Chuann Chan and Wei, Kang Wang (2013) Efficiency and audit fees: Evidence from the U.S. manufacturing firms/ Qian Long Kweh, Yee Chuann Chan and Wei Kang Wang. Terengganu International Finance and Economics Journal (TIFEJ), 3 (2). pp. 1-10. ISSN 2232-0539

[img] Text
AJ_QIAN LONG KWEH TIFEJ T 13.pdf

Download (20MB)
Official URL: http://myjms.mohe.gov.my/index.php/tifej/article/v...

Abstract

This study examines the association between firm efficiency and audit fees for the period from 2004 to 2009. In the first stage, data envelopment analysis (DEA) technique is used to evaluate the level of efficiency of the U.S. manufacturing firms. Next, the DEA efficiency score is included as an explanatory variable in the audit fees model of this study. This study provides empirical evidence that firm efficiency is significantly and negatively related to audit fees, suggesting that firm efficiency is an effective determinant of audit fees. The negative relation supports the view that more efficient firms pay lower audit fees. In sum, firms can improve their efficiency to get lower audit fees due to the lower audit risk exposure.

Item Type: Article
Creators:
CreatorsEmail
Qian, Long Kwehqlkweh@gmail.com
Yee, Chuann ChanUNSPECIFIED
Wei, Kang WangUNSPECIFIED
Subjects: H Social Sciences > HD Industries. Land use. Labor > Manufacturing industries
T Technology > TS Manufactures > Production management. Operations management > Control of production systems > Quality control. Standards
Divisions: Universiti Teknologi MARA, Terengganu > Dungun Campus > Universiti Teknologi MARA (Terengganu) Press (UPENA)
Journal or Publication Title: Terengganu International Finance and Economics Journal (TIFEJ)
ISSN: 2232-0539
Volume: 3
Number: 2
Page Range: pp. 1-10
Official URL: http://myjms.mohe.gov.my/index.php/tifej/article/v...
Item ID: 22719
Uncontrolled Keywords: Audit fees; data envelopment analysis; firm efficiency; manufacturing firms
Last Modified: 03 Feb 2019 04:08
Depositing User: Perpustakaan Cendekiawan UiTM Caw Terengganu
URI: http://ir.uitm.edu.my/id/eprint/22719

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year