The effect of director-auditor link on non-audit services fee
Despite concerns on joint-provision of audit and non-audit services, not many studies have been conducted on examining the factors influencing companies to purchase non-audit services from their auditor. The attachment theory postulates that non-audit services purchasing decisions are influenced by...
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Main Authors: | , |
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Format: | Article |
Language: | English |
Published: |
Universiti Putra Malaysia Press
2013
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Online Access: | http://psasir.upm.edu.my/id/eprint/28364/1/28364.pdf http://psasir.upm.edu.my/id/eprint/28364/ http://www.pertanika.upm.edu.my/Pertanika%20PAPERS/JSSH%20Vol.%2021%20%28S%29%20Oct.%202013/05%20Page%2071-84.pdf |
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Summary: | Despite concerns on joint-provision of audit and non-audit services, not many studies have been conducted on examining the factors influencing companies to purchase non-audit services from their auditor. The attachment theory postulates that non-audit services purchasing decisions are influenced by the director-auditor link. Using 759 sample companies listed on Bursa Malaysia in 2007, the OLS regression results show a significant positive relationship between director-auditor link and non-audit services fee. The finding adds to the limited literature on the factors influencing companies to purchase non-audit services from their auditor and suggests the need for active involvement of shareholders in the auditor selection process. |
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