Does municipal ownership affect audit fees?

Linus Axén, Torbjörn Tagesson (), Denis Shcherbinin, Azra Custovic and Anna Ojdanic
Additional contact information
Linus Axén: Linköping University
Torbjörn Tagesson: Linköping University
Denis Shcherbinin: Linköping University
Azra Custovic: Linköping University
Anna Ojdanic: Linköping University

Journal of Management & Governance, 2019, vol. 23, issue 3, No 5, 693-713

Abstract: Abstract This study analyses whether municipal ownership affects and determines audit fees. Our model of the determinants of audit fees was tested on data from 249 Swedish municipal and 240 private corporations within the real estate industry, thus extending the study of audit fees to hybrid organizations. The statistical analysis was followed up with interviews of five partners from five different audit firms. The result of the study shows that municipal corporations are paying significantly lower audit fees than equivalent private corporations. This finding is primarily explained by lower perceived business risk and by the fact that municipalities are able to push prices by coordinating procurements of audit services.

Keywords: Audit fees; Business risk; Hybrid organizations; Municipal ownership; Reputation risk (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s10997-018-9438-4

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