Variable definitions
| Variables | Definitions | |
|---|---|---|
| LNAF | = | Natural logarithm of total audit fees paid by a firm |
| FAMILYFIRM | = | Indicator variable with a value of one if a firm has family members who hold CEO position, occupy board seats or hold at least 10% of the firm’s equity, zero otherwise |
| FOWN | = | Percentage of equity owned by family members |
| FAMILYMAG | = | Percentage of family members occupying positions on the management team |
| FAMILYDIR | = | Percentage of family members occupying positions on the board of directors |
| BODMEET | = | Number of board meetings held in a given year |
| BODSIZE | = | Number of directors on the board |
| IDR | = | The proportion of independent directors on the board |
| INVESTPROP | = | Institutional Investor’s Shareholding Ratio |
| LEV | = | Total liability to total assets |
| ROE | = | Return on equity |
| ROA | = | Return on total assets |
| INVR | = | Inventory divided by total revenue |
| FIRMAGE | = | Natural logarithm of the number of years ever since the firm’s foundation |
| BIG4 | = | An indicator variable equals 1 if the firm is audited by one of the Big 4 audit firms, 0 otherwise |
| ADMEXP | = | Administrative expenses divided by operating revenue |
| ICE | = | A dummy variable coded 1 if the firm has any material weaknesses in internal controls or 0 otherwise |
| AIQ | = | A dummy variable coded 1 if the type of audit opinion is standard unqualified opinion or 0 otherwise |
| INDY | = | Type of industry |
| T | = | Time |
| Variables | Definitions | |
|---|---|---|
| LNAF | = | Natural logarithm of total audit fees paid by a firm |
| FAMILYFIRM | = | Indicator variable with a value of one if a firm has family members who hold CEO position, occupy board seats or hold at least 10% of the firm’s equity, zero otherwise |
| FOWN | = | Percentage of equity owned by family members |
| FAMILYMAG | = | Percentage of family members occupying positions on the management team |
| FAMILYDIR | = | Percentage of family members occupying positions on the board of directors |
| BODMEET | = | Number of board meetings held in a given year |
| BODSIZE | = | Number of directors on the board |
| IDR | = | The proportion of independent directors on the board |
| INVESTPROP | = | Institutional Investor’s Shareholding Ratio |
| LEV | = | Total liability to total assets |
| ROE | = | Return on equity |
| ROA | = | Return on total assets |
| INVR | = | Inventory divided by total revenue |
| FIRMAGE | = | Natural logarithm of the number of years ever since the firm’s foundation |
| BIG4 | = | An indicator variable equals 1 if the firm is audited by one of the Big 4 audit firms, 0 otherwise |
| ADMEXP | = | Administrative expenses divided by operating revenue |
| ICE | = | A dummy variable coded 1 if the firm has any material weaknesses in internal controls or 0 otherwise |
| AIQ | = | A dummy variable coded 1 if the type of audit opinion is standard unqualified opinion or 0 otherwise |
| INDY | = | Type of industry |
| T | = | Time |
Sharing content requires targeting cookies to be enabled. Please update your cookie preferences to use this feature.