This study examines how the association between board effectiveness and state-owned enterprises’ audit fees is moderated by country-level factors such as shareholder protection laws, political democracy and the degree of economic freedom. The results indicate greater audit effort is demanded by effective boards but that this is impacted by the country context. For countries characterized by high levels of economic freedom and political democracy, state owned enterprises evidence a significant positive association between board effectiveness and audit fees. The study provides insights to regulators, policy makers and shareholders as to the importance of effective boards and high-quality external audits in SOEs.
|Number of pages||52|
|Journal||Asian Review of Accounting|
|Publication status||Published - 28 Feb 2023|