Boardroom diversity and audit fees: director ethnicity, independence and nationality
This paper investigated the effect of boardroom diversity (herein a composite measure of boardroom ethnic composition, independent and foreign directors) on audit fees in the Nigerian context. A sample of companies listed on the Nigerian stock exchange between 2010 and 2011 was used. The study found...
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my.uum.repo.247522020-11-01T07:58:09Z http://repo.uum.edu.my/24752/ Boardroom diversity and audit fees: director ethnicity, independence and nationality Abdul Malik Olarinoye, Salau Che Ahmad, Ayoib HF5601 Accounting This paper investigated the effect of boardroom diversity (herein a composite measure of boardroom ethnic composition, independent and foreign directors) on audit fees in the Nigerian context. A sample of companies listed on the Nigerian stock exchange between 2010 and 2011 was used. The study found that 51% of the sampled companies were ethnically diverse, with about 21% and 49% having foreign directors and independent directors respectively.Further, the results of the panel regression revealed that boardroom diversity had a positive relationship with audit fees. The findings indicate that boardroom diversity enhances board monitoring responsibility and therefore results in an increase in demand for auditors’ effort.The findings of this study have implications for future policy recommendations and formulation because they indicate that boardroom diversity could be a desirable board characteristic that can strengthen the monitoring role of the board. Directory of Open Access Journals 2016 Article PeerReviewed application/pdf en http://repo.uum.edu.my/24752/1/AF%2014%201%202016%20413%20423.pdf Abdul Malik Olarinoye, Salau and Che Ahmad, Ayoib (2016) Boardroom diversity and audit fees: director ethnicity, independence and nationality. Audit Financiar, 14 (136). pp. 413-423. ISSN 15835812 http://doi.org/10.20869/AUDITF/2016/136/413 doi:10.20869/AUDITF/2016/136/413 |
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HF5601 Accounting Abdul Malik Olarinoye, Salau Che Ahmad, Ayoib Boardroom diversity and audit fees: director ethnicity, independence and nationality |
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This paper investigated the effect of boardroom diversity (herein a composite measure of boardroom ethnic composition, independent and foreign directors) on audit fees in the Nigerian context. A sample of companies listed on the Nigerian stock exchange between 2010 and 2011 was used. The study found that 51% of the sampled companies were ethnically diverse, with about 21% and 49% having foreign directors and independent directors respectively.Further, the results of the panel regression revealed that boardroom diversity had a positive relationship with audit fees. The findings indicate that boardroom diversity enhances board monitoring responsibility and therefore results in an increase in demand for auditors’ effort.The findings of this study have implications for future policy recommendations and formulation because they indicate that boardroom diversity could be a desirable board characteristic that can strengthen the monitoring role of the board. |
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Article |
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Abdul Malik Olarinoye, Salau Che Ahmad, Ayoib |
author_facet |
Abdul Malik Olarinoye, Salau Che Ahmad, Ayoib |
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Abdul Malik Olarinoye, Salau |
title |
Boardroom diversity and audit fees: director ethnicity, independence and nationality |
title_short |
Boardroom diversity and audit fees: director ethnicity, independence and nationality |
title_full |
Boardroom diversity and audit fees: director ethnicity, independence and nationality |
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Boardroom diversity and audit fees: director ethnicity, independence and nationality |
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Boardroom diversity and audit fees: director ethnicity, independence and nationality |
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boardroom diversity and audit fees: director ethnicity, independence and nationality |
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Directory of Open Access Journals |
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2016 |
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http://repo.uum.edu.my/24752/1/AF%2014%201%202016%20413%20423.pdf http://repo.uum.edu.my/24752/ http://doi.org/10.20869/AUDITF/2016/136/413 |
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