1 Citation (Scopus)


Purpose: This study investigates the relationship between companies with military directors and audit fees in Indonesia. Design/methodology/approach: Using upper echelon and audit pricing theories, the authors examine military directors' roles in the demand for and supply of auditing services. The authors use Indonesia as their research setting as their military forces have a long history of involvement in business. The study sample includes 898 firm-year observations on the Indonesia Stock Exchange during 2014–2018. Findings: The authors find a negative relationship between military connections and audit fees. This is consistent with auditors assessing lower audit risk and charging lower audit fees to companies that have leaders with military experience. The study findings are strongest where there is military experience on the board of directors and where the military experience is from the Army. Originality/value: This study extends the literature on the benefits of military experience in company leadership, especially in the context of auditing research. The study findings also have implications for the selection of board candidates and auditor risk assessments.

Original languageEnglish
Pages (from-to)639-658
Number of pages20
JournalJournal of Accounting in Emerging Economies
Issue number3
Publication statusPublished - 16 May 2024


  • Audit fees
  • Governance
  • Indonesia
  • Military connections


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