Accounting and Finance
This study examines whether independent audit committee members’ board tenure affects audit fees. We find that audit fees are lower for firms with high proportion of long board tenure directors on the independent audit committee than for firms with low proportion of long board tenure directors on the independent audit committee. The results may suggest that auditors price the monitoring effectiveness arising from long board tenure. The results may also suggest that long board tenure audit committee members have a lower demand for audit effort.
Chan, Anthony; Liu, Guoping; and Sun, Jerry. (2012). Independent audit committee members’ board tenure and audit fees. Accounting and Finance, Forthcoming.
The article available for download here is a pre-print. The definitive version is forthcoming and will be published in Accounting & Finance, 2012. Copyright (2012) John Wiley & Sons Inc.