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Investigating the Relationship between Institutional Ownership and Audit Fees

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  • Zahra Mohammad Azadi
  • Esfandyar Mohammadi

Abstract

Institutional owners possess a large portion of the company stocks. Regarding the separation of the ownership from the management in a firm, the pivotal role of these owners in controlling and monitoring the management of the firms becomes more prominent. Since, audit fees is an important issue both for the managers and independent auditors, so this study aims at investigating the relationship between institutional ownership and audit fees in 50 firms listed in Tehran Stack Exchange. Time span for this study has been specified between 2008 to 2012. The analysis of the data is carried out by using Eviews software. At the end, it was found that there is no a meaningful relationship between institutional ownership and audit fees.

Suggested Citation

  • Zahra Mohammad Azadi & Esfandyar Mohammadi, 2014. "Investigating the Relationship between Institutional Ownership and Audit Fees," International Journal of Empirical Finance, Research Academy of Social Sciences, vol. 2(1), pages 27-33.
    • Handle: RePEc:rss:jnljef:v2i1p2
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    References listed on IDEAS

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    1. Earnhart, Dietrich & Lizal, Lubomir, 2006. "Effects of ownership and financial performance on corporate environmental performance," Journal of Comparative Economics, Elsevier, vol. 34(1), pages 111-129, March.
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    3. Paul A. Griffin & David H. Lont & Yuan Sun, 2010. "Agency problems and audit fees: further tests of the free cash flow hypothesis," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 50(2), pages 321-350, June.
    4. Jayesh Kumar, 2004. "Does Ownership Structure Influence Firm Value? Evidence from India," Finance 0406008, University Library of Munich, Germany.
    5. Santanu Mitra & Mahmud Hossain & Donald Deis, 2007. "The empirical relationship between ownership characteristics and audit fees," Review of Quantitative Finance and Accounting, Springer, vol. 28(3), pages 257-285, April.
    6. Fatima Alali, 2011. "Audit fees and discretionary accruals: compensation structure effect," Managerial Auditing Journal, Emerald Group Publishing, vol. 26(2), pages 90-113, January.
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    Cited by:

    1. Khaled Abdulwahab Alzeaideen & Sara Zakaria AL-Rawash, 2018. "The Effect of Ownership Structure and Corporate Debt on Audit Quality: Evidence from Jordan," International Journal of Economics and Financial Issues, Econjournals, vol. 8(3), pages 51-58.

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