Readability of Financial Footnotes, Audit Fees, and Risk Management Committee

Aditya Aji Prabhawa and Iman Harymawan ()
Additional contact information
Aditya Aji Prabhawa: Department of Accounting, Faculty of Economic and Business, Universitas Airlangga, Surabaya 60115, Indonesia
Iman Harymawan: Department of Accounting, Faculty of Economic and Business, Universitas Airlangga, Surabaya 60115, Indonesia

Risks, 2022, vol. 10, issue 9, 1-21

Abstract: We find that the readability of financial footnotes and risk management committees contributes to audit fees. We use observations from 758 companies listed in Indonesia for 2014–2018, and moderated regression analysis is used for statistical analysis. The results show that the readability of financial footnotes will affect audit fees paid, and RMC strengthens the relationship between the readability of financial footnotes and audit fees. In addition, we also used robustness assays to address endogeneity issues with consistent results as moderated regression analysis (hereafter MRA). These findings provide evidence for policymakers about the relationship between the readability of financial footnotes, RMC, and audit fees.

Keywords: readability; financial footnotes; audit fee; risk management committee; governance (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2227-9091/10/9/170/pdf (application/pdf)
https://www.mdpi.com/2227-9091/10/9/170/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jrisks:v:10:y:2022:i:9:p:170-:d:898643

Access Statistics for this article

Risks is currently edited by Mr. Claude Zhang

More articles in Risks from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().