Factors influencing external audit fees of companies listed on Dubai Financial Market
International Journal of Islamic and Middle Eastern Finance and Management
ISSN: 1753-8394
Article publication date: 15 August 2016
Abstract
Purpose
This study aims to examine the underlying determinants that may influence external audit fees paid by Emirati nonfinancial companies listed on Dubai Financial Market (DFM).
Design/methodology/approach
Data used in this study are mainly collected from the 2011 annual reports and corporate governance reports published by the Emirati nonfinancial companies listed on DFM. Backward regression analysis is used to measure the impact of a set of company characteristics on Emirati non-financial listed firm’s audit delays.
Findings
The findings pointed to a significant and positive association between audit fees and each of corporate size and audit committee independence variables. A significant and negative relationship has been detected between external audit fees and business complexity. The findings also revealed that audit fees are not significantly associated with company’s profitability, risk, industry type, status of audit firm and audit report lag.
Originality/value
The paper helps in expanding limited existing literature about the determinants of audit fees in the Arab and Middle East countries generally and in the UAE context particularly. No prior attempt had been made to investigate the determinants of audit fees paid by Emirati firms listed on DFM because the disclosure of audit fees services provided by external auditors only became effective after April 30, 2010. The findings of the study may be generalized to other Arab countries, particularly neighboring Gulf Cooperation Council states, that have a similar socio-cultural environment.
Keywords
Citation
Naser, K. and Hassan, Y.M. (2016), "Factors influencing external audit fees of companies listed on Dubai Financial Market", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 9 No. 3, pp. 346-363. https://doi.org/10.1108/IMEFM-01-2015-0007
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited