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Corporate compensation policies and audit fees*

* This paper is a replication of an original study

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  • Wysocki, Peter

Abstract

Recent accounting research has started to investigate the links between corporate compensation and auditor compensation. Engel et al. (2010) take a first step to connect these previously distinct literatures by investigating the association between audit committee pay and audit fees. I discuss the findings of this study and then present complementary empirical evidence on the association between CEO compensation and audit fees. My descriptive empirical evidence suggests economically large co-variation in CEO compensation and audit fees. I conclude with suggestions for future research on the links between firms' corporate compensation and auditor compensation policies.

Suggested Citation

  • Wysocki, Peter, 2010. "Corporate compensation policies and audit fees," Journal of Accounting and Economics, Elsevier, vol. 49(1-2), pages 155-160, February.
    • Handle: RePEc:eee:jaecon:v:49:y:2010:i:1-2:p:155-160
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    References listed on IDEAS

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    Cited by:

    1. Umapathy Ananthanarayanan, 2018. "Do Corporate Governance Measures Impact Audit Pricing Of Smaller Firms? Evidence From The United States And New Zealand," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 12(2), pages 77-94.
    2. Bruynseels, L.M.L. & Cardinaels, E., 2014. "The audit committee : Management watchdog or personal friend of the CEO?," Other publications TiSEM 4efbab67-3b44-4eab-9f17-0, Tilburg University, School of Economics and Management.
    3. Yiqing Tan, 2021. "Industry tournament incentives and audit fees," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 48(3-4), pages 587-612, March.
    4. Xing Li & Xia Chen & Baolei Qi & Gaoliang Tian, 2020. "Employee quality and audit fee: evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(5), pages 4533-4566, December.
    5. Zahid Irshad Younas & Haider Mahmood & Asif Saeed, 2013. "Effect of Firm Performance on Corporate Governance A Panel Data Analysis," Asian Journal of Empirical Research, Asian Economic and Social Society, vol. 3(1), pages 1-8, January.
    6. Rustam, Sehrish & Rashid, Kashif & Zaman, Khalid, 2013. "The relationship between audit committees, compensation incentives and corporate audit fees in Pakistan," Economic Modelling, Elsevier, vol. 31(C), pages 697-716.
    7. Sohail Ahmad Javeed & Tze San Ong & Rashid Latief & Haslinah Muhamad & Wei Ni Soh, 2021. "Conceptualizing the Moderating Role of CEO Power and Ownership Concentration in the Relationship between Audit Committee and Firm Performance: Empirical Evidence from Pakistan," Sustainability, MDPI, vol. 13(11), pages 1-26, June.
    8. Egor Evdokimov & Dean Hanlon & Edwin KiaYang Lim, 2022. "Do Generalist CEOs Magnify Boardroom Backscratching?," Journal of Business Ethics, Springer, vol. 181(1), pages 221-247, November.
    9. Bryan, David B. & Mason, Terry W., 2016. "Extreme CEO pay cuts and audit fees," Advances in accounting, Elsevier, vol. 33(C), pages 1-10.
    10. Ge, Yao & Hung, Shengmin & Huang, Wei & Qiao, Zheng & Deng, Xin, 2023. "Mutual fund herding and audit pricing," Research in International Business and Finance, Elsevier, vol. 64(C).

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    Replication

    This item is a replication of:
  • Engel, Ellen & Hayes, Rachel M. & Wang, Xue, 2010. "Audit committee compensation and the demand for monitoring of the financial reporting process," Journal of Accounting and Economics, Elsevier, vol. 49(1-2), pages 136-154, February.

    • More about this item

    Keywords

    Audit fees CEO compensation Complexity Entrenchment Risk;

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    1. Corporate compensation policies and audit fees (J Accounting & Econ 2010) in ReplicationWiki

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