Management Entrenchment, Agency Problem and Audit Fees
@article{Wang2011ManagementEA, title={Management Entrenchment, Agency Problem and Audit Fees}, author={X. Wang and Bibo Yang}, journal={Asian Journal of Finance and Accounting}, year={2011}, volume={3} }
This study examines the association between audit fees and management entrenchment, which is proxied by Bebchuk et al. (2005) entrenchment index. The results show that audit fees are significantly positively correlated with Bebchuk et al. (2005) entrenchment index controlling for other factors. Further results show that the positive relation between audit fees and the entrenchment index exists only in firm with low growth opportunity and high free cash flow (i.e. firms with severe Jensen agency… CONTINUE READING
7 Citations
References
SHOWING 1-10 OF 32 REFERENCES
A test of the free cash flow and debt monitoring hypotheses:: Evidence from audit pricing
- Economics
- 1997
- 254
- Highly Influential
Free Cash Flow, Debt Monitoring, and Audit Pricing: Further Evidence on the Role of Director Equity Ownership
- Business
- 2001
- 115
A Revealed Preference Approach to Understanding Corporate Governance Problems: Evidence from Canada
- Economics, Business
- 2002
- 89
- PDF
The Effect of Capital Structure When Expected Agency Costs are Extreme
- Economics, Materials Science
- 2001
- 389
- PDF