IDEAS home Printed from https://ideas.repec.org/a/eee/pacfin/v83y2024ics0927538x23003177.html
   My bibliography  Save this article

Director turnover, board monitoring and audit fees: Some Australian evidence

Author

Listed:
  • Kanapathippillai, Sutharson
  • Yaftian, Ali
  • Mirshekary, Soheila
  • Sami, Heibatollah
  • Gul, Ferdinand A

Abstract

This paper explores the association between director turnover and increased audit fees in Australia. The study, aligned with upper echelon theory, reveals that the characteristics and actions of top management, as reflected in director turnover, impact corporate decisions and risk-taking behavior. Specifically, higher director turnover is linked to elevated audit fees, disrupting the stability of top management's monitoring and advisory functions. The association is more pronounced for external turnover compared to internal turnover. Additionally, firms with robust corporate governance quality exhibit a weakened positive relationship between director turnover and audit fees. Notably, the COVID-19 pandemic further amplifies the director turnover/audit fees connection. The findings suggest that auditors are likely to consider and price in the impact of board instability on internal controls and monitoring/advisory functions.

Suggested Citation

  • Kanapathippillai, Sutharson & Yaftian, Ali & Mirshekary, Soheila & Sami, Heibatollah & Gul, Ferdinand A, 2024. "Director turnover, board monitoring and audit fees: Some Australian evidence," Pacific-Basin Finance Journal, Elsevier, vol. 83(C).
    • Handle: RePEc:eee:pacfin:v:83:y:2024:i:c:s0927538x23003177
    DOI: 10.1016/j.pacfin.2023.102246
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0927538X23003177
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.pacfin.2023.102246?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:pacfin:v:83:y:2024:i:c:s0927538x23003177. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/pacfin .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.