An Empirical Investigation on Ownership Characteristics, Activities of the Audit Committee, and Audit Fees in Companies Listed on Indonesia Stock Exchange

Megawati Oktorina and Linda Kusumaning Wedari

Applied Finance and Accounting, 2015, vol. 1, issue 1, 20-29

Abstract: This study examines the effect of ownership characteristics and activities of the audit committee to audit fee. This study also uses control variables which include free cash flow, liquidity ratios, profitability ratios, solvency ratios, firm size, market -to-book value of equity, and audits quality of manufacture companies in Indonesia Stock Exchange in the year 2010 - 2012 are used as the population in this study. Data collection method used was purposive sampling. The statistical methods used to analyze the data are the multiple linear regression and results obtained indicate that managerial ownership, audit committee activity, firm size, liquidity ratios, profitability ratios affect audit fees. Meanwhile, institutional ownership, free cash flow, solvency ratio, and market -to-book value of equity do not affect the audit fees significantly.

Keywords: audit fees; ownership characteristics; the activity of the audit committee. (search for similar items in EconPapers)
Date: 2015
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