Media coverage of corporate social irresponsibility and audit fees: International evidence

Frost, Tracie1; Shan, Liwei2; Tsang, Albert3; Yu, Miao4

2022-07-01

10.1111/ijau.12291

INTERNATIONAL JOURNAL OF AUDITING   影响因子和分区

1090-6738

1099-1123

This study uses a large sample of firms from 35 countries to examine how media coverage of corporate social irresponsibility (CSI) affects audit fees. We document a positive and significant relationship between media coverage of CSI and audit fees. Further evidence indicates that this positive relationship is less pronounced for firms with a higher level of commitment to corporate social responsibility (CSR) performance but is more pronounced for firms domiciled in countries with stronger investor protections, higher regulatory quality and higher CSR disclosure requirements. Taken together, these findings support the conjecture that CSI media coverage increases auditors' risk and thereby increases audit fees. Moreover, our findings suggest that the effect of media coverage of CSI on audit fees varies with country-level institutional characteristics and the degree of firms' substantive commitment to CSR performance.

audit fees CSI CSR international media coverage

SSCI

英语

非南科大

Business & Economics

Business, Finance

WOS:000830492700001

WILEY

Web of Science

1.Hong Kong Polytech Univ, Sch Accounting & Finance, Hong Kong, Peoples R China
2.Southwestern Univ Finance & Econ, Res Inst Finance & Econ, Chengdu, Peoples R China
3.Southern Univ Sci & Technol, SUSTech Business Sch, Shenzhen, Peoples R China
4.Shandong Univ Finance & Econ, Sch Accountancy, Jinan, Peoples R China

Frost, Tracie,Shan, Liwei,Tsang, Albert,et al. Media coverage of corporate social irresponsibility and audit fees: International evidence[J]. INTERNATIONAL JOURNAL OF AUDITING,2022.

Frost, Tracie,Shan, Liwei,Tsang, Albert,&Yu, Miao.(2022).Media coverage of corporate social irresponsibility and audit fees: International evidence.INTERNATIONAL JOURNAL OF AUDITING.

Frost, Tracie,et al."Media coverage of corporate social irresponsibility and audit fees: International evidence".INTERNATIONAL JOURNAL OF AUDITING (2022).