The risk of board composition on auditor's risk assessment in Nigeria / Salau Abdulmalik Olarinoye and Ayoib Che Ahmad.

Abdulmalik Olarinoye, Salau and Che Ahmad, Ayoib (2017) The risk of board composition on auditor's risk assessment in Nigeria / Salau Abdulmalik Olarinoye and Ayoib Che Ahmad. Asia-Pacific Management Accounting Journal (APMAJ), 11 (2). pp. 107-127. ISSN 2550-1631

Abstract

This study examines the link between outside directors and audit fees. The study used data from 94 non-financial-listed companies on the Nigerian Stock Exchange from 2008 to 2013. The study used cross-sectional time-series feasible generalized least squares (FGLS) regression, which explains heteroscedasticity and autocorrelation in testing the effect of non-independent non-executive directors and independent non-executive directors on auditor pricing decisions in Nigeria. Our result indicates that the proportion of non-independent non-executive directors on boards has a negative relationship with audit fees, whereas the proportion of independent non-executive directors has a positive relationship with audit fees. Further analysis reveals that block shareholding moderates the effect between outside directors and audit fees. These findings have both policy and practical implications on corporate governance. For instance, future regulatory reforms can consider collaborative board models instead of the insistence on more independent director presence in the boardroom.

Metadata

Item Type: Article
Creators:
CreatorsID Num. / Email
Abdulmalik Olarinoye, SalauUNSPECIFIED
Che Ahmad, AyoibUNSPECIFIED
Subjects: H Social Sciences > HD Industries. Land use. Labor > Risk management. Risk in industry. Operational risk
H Social Sciences > HF Commerce > Accounting. Bookkeeping > Auditing. Auditors
Divisions: Universiti Teknologi MARA, Shah Alam > Accounting Research Institute (ARI)
Journal or Publication Title: Asia-Pacific Management Accounting Journal (APMAJ)
Journal: UiTM Journal > Asia-Pacific Management Accounting Journal (APMAJ)
ISSN: 2550-1631
Volume: 11
Number: 2
Page Range: pp. 107-127
Item ID: 29971
URI: http://ir.uitm.edu.my/id/eprint/29971

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