Risk management committee, political connection and audit pricing: Evidence from Malaysia

This study investigates the impact of risk governance mechanisms on audit pricing in a relationship-based context. Specifically, this considers how formation Risk Management Committee (RMC) and its characteristics affect what moderating effects are relationship between political connection pricing. uses 2,460 firm-year observations from 2012 to 2017, comprising data non-financial firms listed Main Market Bursa Malaysia, Malaysia’s stock market. A panel regression analysis was adopted main analysis, which generated mixed support for hypotheses. Results showed that auditors charged higher fees politically connected firms. Similarly, have an RMC tend pay more fees. meeting frequency, size expertise associated with lower Politically independent members diverse experts The findings can provide guidance policy makers practitioners composition when formulating future management legislation.