 FDI characteristics, industry homogeneity, and audit fees in Japanese multinationalsJunjian Gu Journal of Multinational Financial Management, 2021, vol. 61, issue C Abstract: We examine the effects of FDI characteristics on audit fees and the influence of industry homogeneity on these effects. Taking a sample of Japanese firms, we find that companies investing in a relatively high number of common law countries and developing countries exhibit relatively high audit fees. The more the total geographical distance between the client’s home and host countries, the higher the audit fees. Client industry homogeneity moderates these relationships. Cross-sectional analyses show that the relations are affected by audit scandals, financial and natural disasters, audit firm size, and client subsidiaries. The findings are robust to several sensitivity tests. Overall, we find that auditors charge audit fees based on their clients’ FDI characteristics. Our results help enrich our understanding of the determinants of audit fees, and lead to useful implications for auditors, regulators, and stakeholders. Keywords: Audit fee; Foreign direct investment; Industry characteristic; Japan (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:mulfin:v:61:y:2021:i:c:s1042444x21000025 DOI: 10.1016/j.mulfin.2021.100678 Access Statistics for this article Journal of Multinational Financial Management is currently edited by I. Mathur and G. G. Booth More articles in Journal of Multinational Financial Management from Elsevier |
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