Blockholder Heterogeneity and Audit Fees: Does Private Information Matter?

Archive ouverte : Article de revue

Barroso, Raúl | Ben Ali, Chiraz | Lesage, Cédric | Oyon, Daniel

Edité par HAL CCSD ; Taylor & Francis (Routledge)

We analyze the impact of Small Blockholders’ (SBH – with 5% to 10% of voting rights) heterogeneity and their access to private information on the demand for audit services. By promoting enhanced audit services, we expect SBH to have a moderating effect on the relation between Large Blockholders (LBH – more than 10% of voting rights) and audit fees in a context of low shareholder protection. Drawn on Swiss public firm data over the 2002–2019 period, our results show that the presence of SBH flattens the concave relation between ownership concentration and audit fees found in prior studies. This moderating effect is mainly driven by the uninformed SBH, who given their lower – compared with informed SBH – access to private channels of information, are more likely to rely on audited public financial statements. Our findings contribute to the literature on the role of SBH in the company’s corporate governance.

Consulter en ligne

Suggestions

Du même auteur

Blockholders' Ownership and Audit Fees: The Impact of the Corporate Governance Model | Barroso, Raúl

Blockholders' Ownership and Audit Fees: The Impact of the Corporate Governa...

Archive ouverte: Article de revue

Barroso, Raúl | 2016-10-26

International audience. This paper examines how two prominent corporate governance models, namely the shareholder and stakeholder models, have different effects on the relation between agency conflicts and the suppl...

The moderating role of performance measurement system sophistication on the relationships between internal value drivers and performance | Barroso, Raúl

The moderating role of performance measurement system sophistication on the...

Archive ouverte: Article de revue

Barroso, Raúl | 2016

International audience. Le rôle modérateur de la sophistication des systèmes de mesure de la performance sur la relation entre les facteurs internes de création de valeur et la performance organisationnelle La large...

Individual Wealth Taxes and Corporate Payouts | Barroso, Raúl

Individual Wealth Taxes and Corporate Payouts

Archive ouverte: Article de revue

Barroso, Raúl | 2022-12-11

We examine the effect of individual wealth taxes on dividend policy. Using a comprehensive sample of European public firms from 26 countries, we document that wealth taxes paired with substantial increases in stock prices are asso...

Chargement des enrichissements...