IDEAS home Printed from https://ideas.repec.org/a/eme/jaeepp/jaee-06-2022-0158.html
   My bibliography  Save this article

Military directors and audit fees

Author

Listed:
  • Iman Harymawan
  • Damara Ardelia Kusuma Wardani
  • John Nowland

Abstract

Purpose - This study investigates the relationship between companies with military directors and audit fees in Indonesia. Design/methodology/approach - Using upper echelon and audit pricing theories, the authors examine military directors' roles in the demand for and supply of auditing services. The authors use Indonesia as their research setting as their military forces have a long history of involvement in business. The study sample includes 898 firm-year observations on the Indonesia Stock Exchange during 2014–2018. Findings - The authors find a negative relationship between military connections and audit fees. This is consistent with auditors assessing lower audit risk and charging lower audit fees to companies that have leaders with military experience. The study findings are strongest where there is military experience on the board of directors and where the military experience is from the Army. Originality/value - This study extends the literature on the benefits of military experience in company leadership, especially in the context of auditing research. The study findings also have implications for the selection of board candidates and auditor risk assessments.

Suggested Citation

  • Iman Harymawan & Damara Ardelia Kusuma Wardani & John Nowland, 2023. "Military directors and audit fees," Journal of Accounting in Emerging Economies, Emerald Group Publishing Limited, vol. 14(3), pages 639-658, August.
  • Handle: RePEc:eme:jaeepp:jaee-06-2022-0158
    DOI: 10.1108/JAEE-06-2022-0158
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JAEE-06-2022-0158/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JAEE-06-2022-0158/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1108/JAEE-06-2022-0158?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Xianda & Hou, Wenxuan & Main, Brian G.M., 2024. "Military experience and subsequent effectiveness as a director," Journal of Economic Behavior & Organization, Elsevier, vol. 222(C), pages 144-176.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jaeepp:jaee-06-2022-0158. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.