Effects of agency costs on the relationship of corporate governance with audit quality and accounting conservatism in the Korean audit market
- Authors
- Kwon, Soo Young; Lee, Nam Ryoung; Ki, Eunsun
- Issue Date
- 3-4월-2014
- Publisher
- ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
- Keywords
- agency costs; audit fees; corporate governance; accounting conservatism; audit hours
- Citation
- ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS, v.21, no.2, pp.157 - 185
- Indexed
- SSCI
SCOPUS
- Journal Title
- ASIA-PACIFIC JOURNAL OF ACCOUNTING & ECONOMICS
- Volume
- 21
- Number
- 2
- Start Page
- 157
- End Page
- 185
- URI
- https://scholar.korea.ac.kr/handle/2021.sw.korea/98782
- DOI
- 10.1080/16081625.2012.762970
- ISSN
- 1608-1625
- Abstract
- This study examines the effects of agency costs (AC) on the relationship of corporate governance with audit quality and accounting conservatism. We employ audit hours and audit fees as proxies for audit quality, and accounting conservatism as a proxy for financial reporting quality. We find that the positive relation between corporate governance and audit quality is attenuated in the presence of AC. We also document that AC tend to weaken the negative relation between corporate governance and accounting conservatism. These results demonstrate that the relationship of corporate governance with audit quality and accounting conservatism is conditional on AC.
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Collections - Korea University Business School > Department of Business Administration > 1. Journal Articles
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