Executive Equity Risk-Taking Incentives and Audit Pricing

被引：87
|
作者：
Chen, Yangyang [1 ]
Gul, Ferdinand A. [2 ]
Veeraraghavan, Madhu [3 ]
Zolotoy, Leon [4 ]
机构：
[1] Hong Kong Polytech Univ, Hong Kong, Peoples R China
[2] Monash Univ, Clayton, Vic 3800, Australia
[3] TA Pai Management Inst, Taipei, Taiwan
[4] Univ Melbourne, Melbourne, Vic 3010, Australia
来源：
ACCOUNTING REVIEW | 2015年 / 90卷 / 06期
关键词：
executive compensation; audit fees; vega; misreporting; SOX; LITIGATION RISK; CORPORATE GOVERNANCE; FIRM PERFORMANCE; EARNINGS QUALITY; BUSINESS RISK; STOCK-OPTIONS; SECTION; 404; FEES; IMPACT; REPUTATION;
D O I：
10.2308/accr-51046
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
Using a large sample of U.S. firms spanning the period 2000-2010, we document a strong positive association between the sensitivity of CEO compensation portfolio to stock return volatility (vega) and audit fees. We also show that the positive association between vega and audit fees is weaker in the post-Sarbanes-Oxley Act (SOX) period. In supplementary tests, we show that the relation between vega and audit fees is stronger for firms with older CEOs and in firms where the CEO is also chairman of the board. Collectively, our results suggest that audit firms incorporate executive risk-taking incentives in the fees they charge for their services.
引用
收藏
页码：2205 / 2234
页数：30
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