The Impact of Severe Managerial Remuneration Cut on Audit Fees Regarding Audit Quality: Evidence from Iran
The present study examines the impact of managerial remuneration and its severe cut on audit fees by considering the moderating role of audit quality in companies listed on the Tehran stock exchange. To measure audit quality, three criteria were used, including auditor size, tenure, and expertise. T...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Ferdowsi University of Mashhad
2020-03-01
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| Series: | Iranian Journal of Accounting, Auditing & Finance |
| Subjects: | |
| Online Access: | https://ijaaf.um.ac.ir/article_39259_de2c9c45bd720b6fea0c274bb0357e7a.pdf |
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| Summary: | The present study examines the impact of managerial remuneration and its severe cut on audit fees by considering the moderating role of audit quality in companies listed on the Tehran stock exchange. To measure audit quality, three criteria were used, including auditor size, tenure, and expertise. The statistical population includes 92 firms, and the study was done from 2007 to 2016. Testing the hypotheses is conducted in Stata14 software through panel data with the fixed-effect method. The results showed that auditor size and tenure mitigate the relationship between managerial remuneration and audit fees. In return, the results also suggested that auditor expertise does not affect the relationship between managerial remuneration and audit fees. The obtained results also indicated that audit quality criteria such as size, tenure, and expertise do not affect the relationship between severe managerial remuneration cut and audit fees. In other words, audit quality does not moderate the positive relationship between severe managerial remuneration cut and audit fees. |
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| ISSN: | 2717-4131 2588-6142 |