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Does municipal ownership affect audit fees?

Authors
  • Axén, Linus
  • Tagesson, Torbjörn
  • Shcherbinin, Denis
  • Custovic, Azra
  • Ojdanic, Anna
Publication Date
Jan 01, 2019
Identifiers
DOI: 10.1007/s10997-018-9438-4
OAI: oai:DiVA.org:liu-152255
Source
DiVA - Academic Archive On-line
Keywords
Language
English
License
Green
External links

Abstract

This study analyses whether municipal ownership affects and determines audit fees. Our model of the determinants of audit fees was tested on data from 249 Swedishmunicipal and 240 private corporations within the real estate industry, thus extendingthe study of audit fees to hybrid organizations. The statistical analysis was followedup with interviews of five partners from five different audit firms. The resultof the study shows that municipal corporations are paying significantly lower auditfees than equivalent private corporations. This finding is primarily explained bylower perceived business risk and by the fact that municipalities are able to pushprices by coordinating procurements of audit services.

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