Tax Haven Use, the Pricing of Audit and Non-Audit Services, Suspicious Matters Reporting Obligations and Whistle Blower Hotline Facilities: Evidence from Australian Financial Corporations
Embargo Lift Date
MetadataShow full item record
This study examines whether tax haven use by Australian financial corporations is associated with the pricing of audit and non-audit services. It also analyzes whether the existence of financial corporations’ suspicious matters reports (SMRs) and whistle blower hotline facilities moderate the association between tax haven use and pricing of audit and non-audit services. We find a positive association between tax haven use and the pricing of audit and non-audit services. Our results are economically significant. For example, audit fees for financial corporations with tax haven use is around 23 per cent higher compared to corporations with no tax haven use, while non-audit fees for financial corporations with tax haven use is around 13 per cent higher compared to corporations with no tax haven use. We also find that the existence of SMRs and whistle blower hotline facilities both moderate the positive association between tax haven use and audit pricing. Overall, our results suggest that tax haven use has serious consequences for financial corporations’ pricing of audit and non-audit services, whereas SMRs and whistle blower hotline facilities assist corporations to reduce the risks concerning tax haven use.
Showing items related by title, author, creator and subject.
Abdul Wahab, Effiezal ; Nik Abdul Majid, Wan Zurina; Harymawan, Iman; Agustia, Dian (2020)Purpose: The purchase of non-audit services from incumbent auditors has generated considerable attention. This study aims to examine the relationship between characteristics of non-audit services, namely, the recurrence ...
Mandatory accounting compliance by Australian mineral resources firms: the affect of auditor independence and specialisationHeniro, Joshua (2010)The two objectives of this thesis are to investigate the magnitude of compliance with AASB 6 Exploration for and Evaluation of Mineral Resources and AASB 136 Impairment of Assets; and to examine the influence of audit ...
Singh, Harjinder (2010)This study investigates the existence of cartel pricing and anticompetitive behavior by the Big4 international providers of auditing services (resulting from the halving in the number of such providers from the Big8 to ...