Board Composition and Audit Fee: Evidence from Russia
Corporate Ownership and Control Journal, 8(2), 551-565, 2011
Posted: 19 Dec 2014
Date Written: August 1, 2011
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: Suggested Citation