Board Composition and Audit Fee: Evidence from Russia

Corporate Ownership and Control Journal, 8(2), 551-565, 2011

Posted: 19 Dec 2014

See all articles by Maria Prokofieva

Maria Prokofieva

Victoria University - College of Business

Balachandran Muniandy

La Trobe University - School of Accounting

Date Written: August 1, 2011

Abstract

In the recent years the Russian Government has undertaken serious steps to improve corporate governance practices by introducing the Corporate Code of Governance (CCG) and strengthening the role of corporate boards to monitor top management performance. This paper investigates whether these measures have stimulated positive changes by increasing the demand for higher quality audit. We test our hypotheses using 147 non-listed companies to examine whether board composition influences audit fee in the Russian capital market. Our findings support the demand-side perspective of audit services and suggest that audit fees are associated positively with the presence of an independent chairman, higher proportion of independent directors and State representatives on the board.

Keywords: Audit fee, board of directors, corporate governance, financial reporting, Russia

JEL Classification: M41

Suggested Citation

Prokofieva, Maria and Muniandy, Balachandran, Board Composition and Audit Fee: Evidence from Russia (August 1, 2011). Corporate Ownership and Control Journal, 8(2), 551-565, 2011, Available at SSRN: https://ssrn.com/abstract=2539121

Maria Prokofieva (Contact Author)

Victoria University - College of Business ( email )

Footscray Park
PO Box 14428
Melbourne, 8001
Australia

Balachandran Muniandy

La Trobe University - School of Accounting ( email )

P.O. Box 199, Bendigo
Victoria, 3552
Australia

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