TY - JOUR
T1 - Readability of Financial Footnotes, Audit Fees, and Risk Management Committee
AU - Prabhawa, Aditya Aji
AU - Harymawan, Iman
N1 - Publisher Copyright:
© 2022 by the authors.
PY - 2022/9
Y1 - 2022/9
N2 - We find that the readability of financial footnotes and risk management committees contributes to audit fees. We use observations from 758 companies listed in Indonesia for 2014–2018, and moderated regression analysis is used for statistical analysis. The results show that the readability of financial footnotes will affect audit fees paid, and RMC strengthens the relationship between the readability of financial footnotes and audit fees. In addition, we also used robustness assays to address endogeneity issues with consistent results as moderated regression analysis (hereafter MRA). These findings provide evidence for policymakers about the relationship between the readability of financial footnotes, RMC, and audit fees.
AB - We find that the readability of financial footnotes and risk management committees contributes to audit fees. We use observations from 758 companies listed in Indonesia for 2014–2018, and moderated regression analysis is used for statistical analysis. The results show that the readability of financial footnotes will affect audit fees paid, and RMC strengthens the relationship between the readability of financial footnotes and audit fees. In addition, we also used robustness assays to address endogeneity issues with consistent results as moderated regression analysis (hereafter MRA). These findings provide evidence for policymakers about the relationship between the readability of financial footnotes, RMC, and audit fees.
KW - audit fee
KW - financial footnotes
KW - governance
KW - readability
KW - risk management committee
UR - http://www.scopus.com/inward/record.url?scp=85138568563&partnerID=8YFLogxK
U2 - 10.3390/risks10090170
DO - 10.3390/risks10090170
M3 - Article
AN - SCOPUS:85138568563
SN - 2227-9091
VL - 10
JO - Risks
JF - Risks
IS - 9
M1 - 170
ER -