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dc.contributor.authorAbdul Wahab, Effiezal Aswadi
dc.contributor.authorJain, M.
dc.contributor.authorRahman, A.
dc.identifier.citationAbdul Wahab, E.A. and Jain, M. and Rahman, A. 2015. Political connections: A threat to auditor independence? Journal of Accounting in Emerging Economies. 5 (2): pp. 222-246.

Purpose: The purpose of this paper is to examine whether political connections further impair auditor independence by investigating the relationship between non-audit fees and audit fees and as to whether political connections moderate such relationship. Design/methodology/approach: This study employs panel regression analysis. The panel data set consists of 379 firm-year observations for three years from year 2001 to 2003. Findings: Based on 379 firm-year observations for the period of 2001-2003, grounded on two proxies of political connections namely politically connected firms and the proportion of Bumiputras directors, the authors find a positive and significant relationship between non-audit fees and audit fees, and the relationship becomes weaker, only for Bumiputra-dominated firms connected firms. Originality/value: This study contributes to the extant literature by examining the role of political connections in the context of auditor independence. In addition, this study is conducted in Malaysia, which provides a unique institutional environment with the existence of political connections that is built on ethnic grounds.

dc.titlePolitical connections: A threat to auditor independence?
dc.typeJournal Article
dcterms.source.titleJournal of Accounting in Emerging Economies
curtin.departmentSchool of Accounting
curtin.accessStatusOpen access

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