Regulatory Impact of Concentration of Ownership on the Relationship between Directorate Performance and Auditing Fee

Main Article Content

Mashallah Valikhani
Fatemeh Shakernejad

Abstract

Due to the high impact of concentration of ownership on the auditing fee the relationship between supervision on the directorate structure and auditing fees is dependent to concentration of ownership and concentration of ownership have a significant role in the relation between monitoring the directorate structure and audit fee and increase and a decrease of concentration of ownership influences the relationship board dimensions and audit fee strongly.

This study aims to investigate the impact of concentration of ownership on the relationship between institutional owners to the directorate independence and audit fee accepted companies in the Tehran stock market. In this study with using systematic removal method, a sample of 122 companies was accepted from listed companies in The Tehran stock market during the period from 2011 to 2016.

According to variables and theoretical fundamentals of research 3 hypothesis has been raised for the research and test of hypothesis were used to the method of relative economics. The result of the first to third hypothesis test showed that concentration of ownership moderates the relationship between the directorate and audit fee of listed companies in the Tehran stock market.

Keywords:
corporate governance, audit fee, directorate composition, concentration of ownership, institutional owners.

Article Details

How to Cite
Valikhani, M., & Shakernejad, F. (2019). Regulatory Impact of Concentration of Ownership on the Relationship between Directorate Performance and Auditing Fee. Journal of Economics, Management and Trade, 24(4), 1-13. https://doi.org/10.9734/jemt/2019/v24i430169
Section
Original Research Article

References

Rajabi Rouhollah, Mohammadikhooshoei Hamzeh. The price of representation and giving price to independent auditing services to investigate accounting and auditing. Period. 2008;15(53):35-52.

Dargahi Esmaeil, Pashanejad Yosef. Look at the role and position of institutional shareholders in stock markets; 2012.

Mohammad Azadi, Zahra, Mohammadi Esfandiar. Institutional ownership, concentration of ownership and auditing fee. Auditing Knowledge. 2015;15(60):165-176

Fama E, Jensen MC. Separation of owner-ship and control. Journal of Law and Economics. 1983;26(2):327-349.

Salmon M, Hwang S. Market stress and herding. Journal of Empirical Finance. 2004;11(4):585–616.

Kasai N. Ownership structure, Audit fees, and audit Quality in Japan; 2014.

Simunic D. The pricing of audit services: theory and evidence. Journal of Accounting Research. 1996;18(1):161-190.

Ben Ali C, Lesage C. Audit pricing and nature of controlling shareholders: Evidence from France. China Journal of Accounting Research; 2012.

Abbott L, Parker S, Peters G. Audit committee characteristics and restatement. Auditing: A Journal of Practice & Theory. 2003;23(1):69-87.

Seyyedi Seyyed Aziz. Relationship between the characteristics of the Board of directors and the management of profits. Master's thesis, Allame Tabatabaei University; 2007.

Hassas Yeganeh, Yahya Dadashi Iman. Investigation the effect of corporate governance independent editor’s manage-ment accounting. 2010;3(5).

Akbari, Mahnaz. Effects of percentage of non-executive directors on the performance of the company given the competitive strategy adopted. Master's thesis from University Alameh Tabatabaie; 2010.

Richard Bozec Mohamed Dia. Monitoring function of the board and audit fees: Contingent upon concentration of ownership. International Journal of Accounting & Information Management. 2017;25(1).

Salim Darmadi. Concentration of owner-ship, family control, and auditor choice: Evidence from an emerging market. Asian Review of Accounting. 2006;24(1):19-42.

Hu N, Wang F, Wang P, Yao LJ, Zhang J. The impact of ultimate ownerships on audit fees; evidence from Chinese listed companies, Asia-pacific journal of accounting & Economics. 2012;19(3):1-22.

Nasirzadeh, Farzaneh, Tayyebeh Gholami. Investigation the tax avoidance and corporate morality on auditing fee. Fourth international conference of practical research in management and accounting. Tehran Shahid Beheshti University; 2017.

Lary Dasht Bayyaz, Mahmood, Oradi, Javad. Characteristics of auditing committee and auditing fee. Evidence of the Tehran stock market. Quarterly Journal of Empirical Accounting Research, Period. 2016;6(2):69-94.