Ownership structured firms in Malaysia: audit committee characteristics and audit fees / Norziaton Ismail Khan, Susela Selvaraj Devi and Meng Chan Wai

Ismail Khan, Norziaton and Selvaraj Devi, Susela and Wai, Meng Chan (2019) Ownership structured firms in Malaysia: audit committee characteristics and audit fees / Norziaton Ismail Khan, Susela Selvaraj Devi and Meng Chan Wai. Social and Management Research Journal, 16 (2). pp. 79-106. ISSN 1675-7017

Abstract

The political economy shaped the ownership structure of corporations in Malaysia. The rapid growth of the economy has not diluted the concentrated ownership structure in the Malaysian firms. Malaysia has its own unique feature of ownership structured firms which can be divided into politically connected (PCON) firms, institutional ownership and managerial ownership (INST&MGRL) firms, and family ownership (FAMILY) firms. The purpose of this paper is to investigate whether PCON, INST&MGR and FAMILY firms are associated with higher audit fees. This study also examines the association between audit committee characteristicsIND, DIL and EXP and audit fees based on the revamped Bursa Listing Requirementsin 2008, which focus on audit committee characteristics. Using data from 567 firm-year observations from years 2008 to 2010, we find that PCON firms pay higher audit fees than INST&MGRL and FAMILY firms. Further, the association between audit committee IND, DIL and EXP and audit fees is positive and significant for PCON firms, suggesting that the government intervention is expected to produce better governance and improve the firm’s business performance. Thisis because the government has given much attention and initiatives to ensure that these firms perform in an effective way and assist the government to improve the economic growth.

Metadata

Item Type: Article
Creators:
CreatorsID Num. / Email
Ismail Khan, NorziatonUNSPECIFIED
Selvaraj Devi, SuselaUNSPECIFIED
Wai, Meng ChanUNSPECIFIED
Subjects: H Social Sciences > HD Industries. Land use. Labor > Corporations > Corporate organization. Corporate governance
H Social Sciences > HD Industries. Land use. Labor > Industry > Industrial policy. The state and industrial organization
H Social Sciences > HD Industries. Land use. Labor > Management. Industrial Management > Organization
Divisions: Universiti Teknologi MARA, Shah Alam > Research Management Centre (RMC)
Journal or Publication Title: Social and Management Research Journal
Journal: UiTM Journal > Social and Management Research Journal
ISSN: 1675-7017
Volume: 16
Number: 2
Page Range: pp. 79-106
Item ID: 27560
Uncontrolled Keywords: audit fees, audit committee, corporate governance, political connections
URI: http://ir.uitm.edu.my/id/eprint/27560

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