Short name and variable measurement
| Variables | Short name | Measurement |
|---|---|---|
| Dependent variables | ||
| Audit fees | LnAuditFees | Measured as the natural logarithm of total audit fees |
| Independent variables | ||
| Firm complexity | FirmCmplx1 | Total number of subsidiaries owned by the firm |
| Firm complexity | FirmCmplx2 | Measured as the sum of depreciation, inventory and accounts receivable scaled by total assets |
| Moderating variables | ||
| Executive directors’ financial knowledge | ExeFinKnow | Indicator variable equal to 1 if at least Two executive directors possess financial expertise (e.g. MBA, CA, CMA, ACCA, CIMA or CFA), and 0 otherwise |
| Audit committee independence | AuditIndep | Indicator variable equal to 1 if independent directors exceed One-third of the audit committee, and 0 otherwise |
| Family dummy | FamInd | Indicator variable equal to 1 if the firm is family-controlled, and 0 otherwise |
| Control variables | ||
| Recurring audit | RAudit | Indicator variable equal to 1 if the firm retains the same audit firm for at least Two consecutive audit terms, and 0 otherwise |
| Audit tenure | AudTenure | Number of consecutive audit periods served by the incumbent audit firm |
| Loss | LossInd | Indicator variable equal to 1 if the firm reports a net loss in the fiscal year, and 0 otherwise |
| Export orientation | ExportInd | Indicator variable equal to 1 if the firm declares itself export-oriented, and 0 otherwise |
| Big4 Status | Graphic | Indicator variable equal to 1 if the auditor is a Big Four firm, and 0 otherwise |
| Busy seasons | BusyInd | Indicator variable equal to 1 if the firm’s fiscal year ends in June, and 0 otherwise |
| Firm age | FirmAge | Log of firm age, defined as years since incorporation |
| Variables | Short name | Measurement |
|---|---|---|
| Audit fees | LnAuditFees | Measured as the natural logarithm of total audit fees |
| Firm complexity | FirmCmplx1 | Total number of subsidiaries owned by the firm |
| Firm complexity | FirmCmplx2 | Measured as the sum of depreciation, inventory and accounts receivable scaled by total assets |
| Executive directors’ financial knowledge | ExeFinKnow | Indicator variable equal to 1 if at least Two executive directors possess financial expertise (e.g. MBA, CA, CMA, ACCA, |
| Audit committee independence | AuditIndep | Indicator variable equal to 1 if independent directors exceed One-third of the audit committee, and 0 otherwise |
| Family dummy | FamInd | Indicator variable equal to 1 if the firm is family-controlled, and 0 otherwise |
| Recurring audit | RAudit | Indicator variable equal to 1 if the firm retains the same audit firm for at least Two consecutive audit terms, and 0 otherwise |
| Audit tenure | AudTenure | Number of consecutive audit periods served by the incumbent audit firm |
| Loss | LossInd | Indicator variable equal to 1 if the firm reports a net loss in the fiscal year, and 0 otherwise |
| Export orientation | ExportInd | Indicator variable equal to 1 if the firm declares itself export-oriented, and 0 otherwise |
| Big4 Status | Graphic | Indicator variable equal to 1 if the auditor is a Big Four firm, and 0 otherwise |
| Busy seasons | BusyInd | Indicator variable equal to 1 if the firm’s fiscal year ends in June, and 0 otherwise |
| Firm age | FirmAge | Log of firm age, defined as years since incorporation |
Sharing content requires targeting cookies to be enabled. Please update your cookie preferences to use this feature.