Local creative culture and audit fees

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dc.citation.issue2
dc.citation.volume55
dc.contributor.authorCosta MD
dc.contributor.authorHabib A
dc.date.accessioned2024-02-13T20:22:52Z
dc.date.accessioned2024-07-25T06:46:00Z
dc.date.available2022-11-23
dc.date.available2024-02-13T20:22:52Z
dc.date.available2024-07-25T06:46:00Z
dc.date.issued2023-03-13
dc.description.abstractThis paper examines the association between local creative culture and audit fees. Using a large, unbalanced panel data of listed US firms between 2004 and 2018, we find evidence that firms headquartered in US counties with high creative culture tend to pay higher audit fees than firms headquartered in counties with low creative culture. We also find that such firms tend to have longer audit report lag and are subject to more shareholder litigation. Cross-sectional tests show that real earnings management, managerial risk-taking propensity, and external corporate governance environment moderate the positive association between creative culture and audit fees. The positive association between local creative culture and audit fees remains robust to controlling for endogeneity concerns. Our study contributes to the emerging literature on local creative culture by providing evidence that local creative culture encourages managers and employees to undertake risky initiatives, thereby increasing audit risks.
dc.description.confidentialfalse
dc.edition.editionMarch 2023
dc.identifier.citationCosta MD, Habib A. (2023). Local creative culture and audit fees. British Accounting Review. 55. 2.
dc.identifier.doi10.1016/j.bar.2022.101151
dc.identifier.eissn1095-8347
dc.identifier.elements-typejournal-article
dc.identifier.issn0890-8389
dc.identifier.number101151
dc.identifier.piiS0890838922000877
dc.identifier.urihttps://mro.massey.ac.nz/handle/10179/70829
dc.languageEnglish
dc.publisherElsevier Ltd on behalf of British Accounting Association
dc.publisher.urihttps://www.sciencedirect.com/science/article/pii/S0890838922000877
dc.relation.isPartOfBritish Accounting Review
dc.subjectCreative culture
dc.subjectAudit fees
dc.subjectReal earnings management
dc.subjectRisk-taking
dc.subjectCorporate governance
dc.titleLocal creative culture and audit fees
dc.typeJournal article
pubs.elements-id458510
pubs.organisational-groupOther
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