Audit fees in Malaysia: does corporate governance matter?

Article

Wahab, Effiezal Aswadi Abdul, Zain, Mazlina Mat and James, Kieran. 2011. "Audit fees in Malaysia: does corporate governance matter? " Asian Academy of Management Journal of Accounting and Finance. 7 (1), pp. 1-27.
Article Title

Audit fees in Malaysia: does corporate governance matter?

ERA Journal ID40123
Article CategoryArticle
AuthorsWahab, Effiezal Aswadi Abdul (Author), Zain, Mazlina Mat (Author) and James, Kieran (Author)
Journal TitleAsian Academy of Management Journal of Accounting and Finance
Journal Citation7 (1), pp. 1-27
Number of Pages27
Year2011
Place of PublicationPenang, Malaysia
ISSN1823-4992
1985-8299
Web Address (URL)http://web.usm.my/journal/aamjaf/7-1-1-2011.html
Abstract

This study examines the relationship between corporate governance and audit fees during the period before and after the enactment of the Malaysian Code of Corporate Governance (MCCG). Our panel analysis of 379 firms during the 1999-2002 period reveals a significant and positive relationship between corporate governance and audit fees. However, the relationship becomes weaker after 2001, suggesting that the MCCG reduced firms' control and inherent risk, thus ultimately contributing to reduced audit effort in Malaysia. Our findings remain viable after we control for political connections unique to Malaysia's capital market.

Keywordsaudit fees; corporate governance; corporate governance reform; MCCG; political connection
ANZSRC Field of Research 2020500102. Business ethics
440811. Political theory and political philosophy
350102. Auditing and accountability
Public Notes

Authors retain the following rights:... (iii) make any version of the Contribution available on digital repositories; provided in each case PENERBIT USM (and Publication) is cited as the first/forthcoming publisher of the Contribution and the Author(s) accurately distinguish any modified version of the Contribution from that published or to be published by PENERBIT USM.

Byline AffiliationsUniversity of Science, Malaysia
Multimedia University, Malaysia
School of Accounting, Economics and Finance
Institution of OriginUniversity of Southern Queensland
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