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Dual-class shares and audit pricing: Evidence from the canadian markets

Show simple item record Khalil S. Magnan M.L. Cohen J.R.
dc.contributor.editor 2008 2017-09-07T07:51:42Z 2017-09-07T07:51:42Z 2008
dc.identifier 10.2308/aud.2008.27.2.199
dc.identifier.issn 02780380
dc.description.abstract This paper investigates whether audit fees vary with the wedge between cash flow rights and control rights arising from the presence of dual-class share structures. Dual-class shares exist in firms having two or more classes of shares with disproportionate voting rights. They affect audit fees through their effect on the supply for audit services. External auditors conduct wider (narrower) scope audits depending on whether dual-class shares increase (decrease) audit risk and-or auditor business risk. Wider (narrower) scope audits are more (less) costly for the auditors and for their clients. This paper documents a positive association between audit fees and the wedge between cash flow rights and control rights in a sample of Canadian firms during 2004. It extends current research by investigating whether dominant shareholdings affect audit pricing, and by examining audit pricing in Canada over a time period that witnessed significant changes in corporate governance.
dc.format.extent Pages: (199-216)
dc.language English
dc.publisher SARASOTA
dc.relation.ispartof Publication Name: Auditing; Publication Year: 2008; Volume: 27; no. 2; Pages: (199-216);
dc.source Scopus
dc.title Dual-class shares and audit pricing: Evidence from the canadian markets
dc.type Article
dc.contributor.affiliation Khalil, S., American University of Beirut, United States
dc.contributor.affiliation Magnan, M.L., Concordia University, Canada
dc.contributor.affiliation Cohen, J.R., Boston College, United States
dc.contributor.authorAddress Khalil, S.; American University of BeirutUnited States
dc.contributor.authorCorporate University: American University of Beirut; Faculty: Suliman S. Olayan School of Business; Department: School of Business;
dc.contributor.authorDepartment School of Business
dc.contributor.authorFaculty Suliman S. Olayan School of Business
dc.contributor.authorInitials Khalil, S
dc.contributor.authorInitials Magnan, ML
dc.contributor.authorInitials Cohen, JR
dc.contributor.authorReprintAddress Khalil, S (reprint author), Amer Univ Beirut, Beirut, Lebanon.
dc.contributor.authorUniversity American University of Beirut
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dc.description.citedCount 10
dc.description.citedTotWOSCount 6
dc.description.citedWOSCount 6
dc.format.extentCount 18
dc.identifier.scopusID 77249086590
dc.publisher.address 5717 BESSIE DR, SARASOTA, FL 34233 USA
dc.relation.ispartOfISOAbbr Audit.-J. Pract. Theory
dc.relation.ispartOfIssue 2
dc.relation.ispartofPubTitle Auditing
dc.relation.ispartofPubTitleAbbr Auditing
dc.relation.ispartOfVolume 27
dc.source.ID WOS:000265151200009
dc.type.publication Journal
dc.subject.otherAuthKeyword Audit pricing
dc.subject.otherAuthKeyword Corporate governance
dc.subject.otherAuthKeyword Dual-class shares
dc.subject.otherAuthKeyword Ownership structure
dc.subject.otherKeywordPlus CORPORATE GOVERNANCE
dc.subject.otherKeywordPlus FAMILY OWNERSHIP
dc.subject.otherKeywordPlus LITIGATION RISK
dc.subject.otherKeywordPlus VOTING-RIGHTS
dc.subject.otherKeywordPlus FEES
dc.subject.otherKeywordPlus EARNINGS
dc.subject.otherKeywordPlus SERVICES
dc.subject.otherKeywordPlus ASSOCIATION
dc.subject.otherKeywordPlus FIRM
dc.subject.otherWOS Business, Finance

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