IDEAS home Printed from https://ideas.repec.org/a/bla/acctfi/v49y2009i4p697-724.html
   My bibliography  Save this article

Governance regulatory changes, International Financial Reporting Standards adoption, and New Zealand audit and non‐audit fees: empirical evidence

Author

Listed:
  • Paul A. Griffin
  • David H. Lont
  • Yuan Sun

Abstract

This study examines the association between overseas and New Zealand governance regulatory reforms and New Zealand companies’ audit and non‐audit fees. Our models use temporal and International Financial Reporting Standards (IFRS) indicator variables to relate the timing of the fee changes to the incidence of the overseas and local reforms. We find that audit fees increased in New Zealand over 2002–2006. Such increases associate reliably with the transition to and adoption of NZ IFRS and not with earlier overseas governance reforms. Our study also documents a decrease in non‐audit fees over the same period, but we find no IFRS effect for non‐audit fees.

Suggested Citation

  • Paul A. Griffin & David H. Lont & Yuan Sun, 2009. "Governance regulatory changes, International Financial Reporting Standards adoption, and New Zealand audit and non‐audit fees: empirical evidence," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 49(4), pages 697-724, December.
  • Handle: RePEc:bla:acctfi:v:49:y:2009:i:4:p:697-724
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1467-629X.2009.00310.x
    Download Restriction: no

    References listed on IDEAS

    as
    1. David Hay & Robert Knechel & Vivian Li, 2006. "Non‐audit Services and Auditor Independence: New Zealand Evidence," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 33(5‐6), pages 715-734, June.
    2. Rachel Baskerville & David Hay, 2006. "The effect of accounting firm mergers on the market for audit services: New Zealand evidence," Abacus, Accounting Foundation, University of Sydney, vol. 42(1), pages 87-104, March.
    3. repec:bla:joares:v:18:y:1980:i:1:p:161-190 is not listed on IDEAS
    4. repec:wly:coacre:v:24:y:2007:i:2:p:467-487 is not listed on IDEAS
    5. Scott Whisenant & Srinivasan Sankaraguruswamy & K. Raghunandan, 2003. "Evidence on the Joint Determination of Audit and Non‐Audit Fees," Journal of Accounting Research, Wiley Blackwell, vol. 41(4), pages 721-744, September.
    6. DeAngelo, Linda Elizabeth, 1981. "Auditor size and audit quality," Journal of Accounting and Economics, Elsevier, vol. 3(3), pages 183-199, December.
    7. repec:wly:coacre:v:23:y:2006:i:1:p:141-191 is not listed on IDEAS
    8. Elizabeth Carson & Neil Fargher, 2007. "Note on audit fee premiums to client size and industry specialization," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 47(3), pages 423-446, September.
    9. Marcia Annisette & Philip O'Regan, 2007. "Joined for the common purpose: The establishment of the Institute of Chartered Accountants in Ireland as an all-Ireland institution," Qualitative Research in Accounting & Management, Emerald Group Publishing, vol. 4(1), pages 4-25, March.
    10. Johnson, Marilyn F. & Nelson, Karen K. & Frankel, Richard M., 2002. "The Relation Between Auditor's Fees for Non-audit Services and Earnings Quality," Research Papers 1696r, Stanford University, Graduate School of Business.
    11. William R. Kinney & Zoe‐Vonna Palmrose & Susan Scholz, 2004. "Auditor Independence, Non‐Audit Services, and Restatements: Was the U.S. Government Right?," Journal of Accounting Research, Wiley Blackwell, vol. 42(3), pages 561-588, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. De George, Emmanuel T. & Li, Xi & Shivakumar, Lakshmanan, 2016. "A review of the IFRS adoption literature," LSE Research Online Documents on Economics 67599, London School of Economics and Political Science, LSE Library.
    2. repec:kap:jmgtgv:v:23:y:2019:i:3:d:10.1007_s10997-018-9438-4 is not listed on IDEAS
    3. repec:bla:ausact:v:28:y:2018:i:4:p:512-524 is not listed on IDEAS
    4. Kogilavani Apadore & Thanaletchumi R. Letchumanan, 2016. "Determinants of Audit Fees among Public Listed Companies in Malaysia. A Theoretical Model," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 6(2), pages 169-174, April.
    5. Karen Benson & Peter M Clarkson & Tom Smith & Irene Tutticci, 2015. "A review of accounting research in the Asia Pacific region," Australian Journal of Management, Australian School of Business, vol. 40(1), pages 36-88, February.
    6. repec:bla:acctfi:v:57:y:2017:i::p:255-276 is not listed on IDEAS
    7. repec:bla:abacus:v:53:y:2017:i:2:p:159-179 is not listed on IDEAS
    8. Ines Maraghni & Mehdi Nekhili, 2017. "Audit committee characteristics and audit fees: Evidence from France
      [Caractéristiques du comité d’audit et honoraires d’audit : cas des entreprises françaises]
      ," Post-Print hal-01907594, HAL.
    9. repec:ibf:ijbfre:v:12:y:2018:i:2:p:77-94 is not listed on IDEAS
    10. Najihah Yaacob & Ayoib Che-Ahmad, 2012. "Audit Fees after IFRS Adoption: Evidence from Malaysia," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 2(1), pages 31-46, June.
    11. Vieru, Markku & Schadewitz, Hannu, 2010. "Impact of IFRS transition on audit and non-audit fees: evidence from small and medium-sized listed companies in Finland," MPRA Paper 44664, University Library of Munich, Germany.
    12. De Fuentes, Cristina & Porcuna, Rubén, 2016. "Main drivers of consultancy services: A meta-analytic approach," Journal of Business Research, Elsevier, vol. 69(11), pages 4775-4780.
    13. repec:gam:jijfss:v:6:y:2018:i:4:p:92-:d:182521 is not listed on IDEAS
    14. repec:bla:ausact:v:27:y:2017:i:4:p:348-367 is not listed on IDEAS
    15. repec:bla:acctfi:v:57:y:2017:i:1:p:131-164 is not listed on IDEAS
    16. repec:bla:acctfi:v:58:y:2018:i:3:p:635-667 is not listed on IDEAS
    17. repec:ijb:journl:v:16:y:2017:i:1:p:75-100 is not listed on IDEAS
    18. Emmanuel T. De George & Xi Li & Lakshmanan Shivakumar, 2016. "A review of the IFRS adoption literature," Review of Accounting Studies, Springer, vol. 21(3), pages 898-1004, September.

    More about this item

    Statistics

    Access and download statistics

    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:bla:acctfi:v:49:y:2009:i:4:p:697-724. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley Content Delivery). General contact details of provider: http://edirc.repec.org/data/aaanzea.html .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.