Corporate social responsibility and non-audit service fees

Jong-Yu Paula Hao, Fei Kang and Chia-Ling Lee

Asia-Pacific Journal of Accounting & Economics, 2023, vol. 30, issue 5, 1327-1349

Abstract: In this study, we examine the association between corporate social responsibility (CSR) and the purchase of non-audit service (NAS). Due to the information asymmetry between stakeholders and managers, stakeholders are generally concerned about auditor’s independence and the firms’ reporting quality. We argue that firms engaging in CSR are more concerned about meeting stakeholder expectations and protecting their reputation of being socially responsible; therefore, they tend to purchase less NAS due to the concern of impaired audit quality. Consistent with our argument, we find that firms with higher CSR ratings incur lower NAS fees. We also document that the negative association of CSR-NAS fees is stronger for firms facing greater stakeholder demand, those with more reputation concerns, and those subject to higher litigation risk.

Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/16081625.2021.1976228 (text/html)
Access to full text is restricted to subscribers.

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:taf:raaexx:v:30:y:2023:i:5:p:1327-1349

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/raae20

DOI: 10.1080/16081625.2021.1976228

Access Statistics for this article

Asia-Pacific Journal of Accounting & Economics is currently edited by Yin-Wong Cheung, Hong Hwang, Jeong-Bon Kim, Shu-Hsing Li and Suresh Radhakrishnan

More articles in Asia-Pacific Journal of Accounting & Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().