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FRANCE’S JOINT-AUDIT REQUIREMENT AND AUDIT FEES: THE INFLUENCE OF OWNERSHIP AND GOVERNANCE

Mehdi Nekhili, Wafa Masmoudi Ayadi, Dhikra Chebbi

DOI: 10.22495/cocv11i2c4p4

Abstract

Besides the size of the external auditor, which is a major determinant, audit fees depend also on audit market characteristics, corporate governance and ownership. On the basis of a sample of 130 French listed companies during the 2004–2006 period, we present evidence of a “Big” auditor premium. The results highlight that the presence of a “Big” among auditors has a positive and significant effect of the level of audit fees. This impact is more important in the case of joint audit by two “Big” auditors. The choice of a “Major” auditor also increases the level of audit fees. Finally, we find that governance and ownership characteristics act in different ways on auditor’s selection involving complementarity or substitution with external audit.

Keywords: External Auditor, Big Four, Majors, Audit Fees, Governance, Ownership Structure

How to cite this paper: Nekhili, M., Ayadi, W. M., & Chebbi, D. (2014). France’s joint-audit requirement and audit fees: The influence of ownership and governance. Corporate Ownership & Control, 11(2-4), 388-401. http://doi.org/10.22495/cocv11i2c4p4

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