Audit Pricing and Corporate Whistleblower Governance: Evidence from Australian Financial Firms
Access Status
Fulltext not available
Embargo Lift Date
2023-10-18
Authors
Eulaiwi, Baban
Al-Hadi, Ahmed
Duong, Lien
Clark, Keira
Taylor, Grantley
Perrin, Brian
Date
2021Type
Journal Article
Metadata
Show full item recordCitation
Eulaiwi, B. and Al-Hadi, A. and Duong, T.H.L. and Clark, K. and Taylor, G. and Perrin, B. 2021. Audit Pricing and Corporate Whistleblower Governance: Evidence from Australian Financial Firms. Accounting & Finance.
Source Title
Accounting & Finance
ISSN
Faculty
Faculty of Business and Law
School
School of Accounting, Economics and Finance
Collection
Abstract
We investigate the relationship between firm whistleblower governance and audit pricing of Australian listed financial firms over the 2008–2018 period. Consistent with agency and organisational justice theoretical tenets, we find that firms that exhibit stronger whistleblower governance incur lower audit fees. We find that the negative association between strength in whistleblower governance and firms' audit fees is more pronounced for firms that are exposed to increased litigation risk, and for firms having an anti-fraud policy. Our results are robust to endogeneity tests including difference-in-difference (DID), two-stage least squares (2SLS) and propensity score matching (PSM) analyses.