IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-04583976.html
   My bibliography  Save this paper

Auditor Perception of Corporate Excess Cash Holdings: The French Evidence

Author

Listed:
  • Ghassen Allani

    (UPHF - Université Polytechnique Hauts-de-France, LARSH - Laboratoire de Recherche Sociétés & Humanités - UPHF - Université Polytechnique Hauts-de-France - INSA Hauts-De-France - INSA Institut National des Sciences Appliquées Hauts-de-France - INSA - Institut National des Sciences Appliquées)

  • Imen Ben Slimene

    (CREGO - Centre de Recherche en Gestion des Organisations - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UB - Université de Bourgogne - UBFC - Université Bourgogne Franche-Comté [COMUE] - UFC - Université de Franche-Comté - UBFC - Université Bourgogne Franche-Comté [COMUE], Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar)

  • Yves Mard

    (CleRMa - Clermont Recherche Management - ESC Clermont-Ferrand - École Supérieure de Commerce (ESC) - Clermont-Ferrand - UCA [2017-2020] - Université Clermont Auvergne [2017-2020])

Abstract

The audit literature highlights the influence of the context on the relationship between excess cash and audit fees (Gleason et al., 2017; Kuo et al., 2022). We study this relationship in the French context, which presents several specificities regarding corporate governance and audit regulation. The empirical study conducted on an initial sample of 1411 observations of French-listed firms over the period [2008- 2018] shows that excess cash is associated with lower audit fees. However, this relationship no longer holds for firms whose accounting and financial decisions may seem contradictory to holding excess cash. These results complement previous research and show an intermediate situation between those described in the American and Chinese contexts. French auditors generally look favorably on excess cash, but their perception can change, charging extra fees in circumstances where holding excess cash may seem suboptimal.

Suggested Citation

  • Ghassen Allani & Imen Ben Slimene & Yves Mard, 2024. "Auditor Perception of Corporate Excess Cash Holdings: The French Evidence," Post-Print hal-04583976, HAL.
    • Handle: RePEc:hal:journl:hal-04583976
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    Audit fees; Excess Cash Holdings;

    Statistics

    Access and download statistics

    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:hal:journl:hal-04583976. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.