THE COST OF INNOVATION: EVIDENCE FROM AUDITOR PRICING OF INVENTOR CHIEF EXECUTIVE OFFICERS

نویسندگان

چکیده

The study assesses whether auditors factor into their pricing of an audit engagement the presence inventor CEO given potential conflict interest this may present. Empirical and anecdotal evidence suggests that CEOs have more appetite for risk be less business-minded, thus suggesting agency costs firm. We rely on a self-developed database archival data from other sources. Using multivariate regressions, we assess association between fees, while controlling fee determinants. results our analysis reveal premium in CEOs. Additional also finds is not exacerbated by risk, top-tier significantly reduces auditor CEO. Our shows positive significant fees stronger greater financial distress. Overall, findings suggest decision managers shareholders. JEL Classification Codes: M42, J2, O32.

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ژورنال

عنوان ژورنال: International journal of accounting & finance review

سال: 2021

ISSN: ['2576-1285', '2576-1293']

DOI: https://doi.org/10.46281/ijafr.v7i1.1204