Impact of Board Incentives and Board Interlocks on Audit Fees

Document Type : Original Article

Author

• Elham Chenari

Ferdowsi University of Mashhad, Faculty of Economics and Administrative Sciences

10.22067/ijaaf.2020.39434

Abstract

This study aims to examine how board incentives and board interlocks affect audit fees. Using multiple linear regression with panel data, this research shows a significant relationship between the board incentives and future audit fees. In contrast, this relationship is not significant for current audit fees. Furthermore, there is a significant relationship between board interlock in companies with future audit fees, while this relationship is not significant for the current audit fees. This paper contributes to the literature on the determinants of audit fees.

Keywords

• Board incentives
• Board compensation
• Audit fees
• Board interlock

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