Investigating the effect of managerial overconfidence on abnormal audit fees with respect to stakeholder equity mechanisms interaction role

Iranian Journal of Accounting, Auditing and Finance

مقالات آماده انتشار، پذیرفته شده، انتشار آنلاین از تاریخ 04 بهمن 1401  

نوع مقاله: Original Article

شناسه دیجیتال (DOI): 10.22067/ijaaf.2023.79120.1237

نویسندگان

Esmaeil Akhlaghi Yazdinejad ¹؛ Hossein Nourani²

¹Department of Accounting, Faculty of management, economics and Accounting, University of Hormozgan, BandarAbbas, Iran

²Department of Accounting, Faculty of management economics and Accounting, University of Hormozgan, BandarAbbas, Iran

چکیده

Pricing of auditing services has been a topic of interest to many audit researchers. In case that auditors recognize managerial overconfidence, they are expected to incorporate this risk factor into their audit planning and compensate for additional audit efforts to reduce diagnostic risk. This research investigates the effect of the stakeholder equity mechanisms on the relationship between managerial overconfidence and abnormal Audit fees. Research sample consists of 144 listed firms on Tehran Stock Exchange (TSE) during 2012 to 2021. The multiple regression technique is used to test hypotheses. Furthermore in this study the Brucks (2019) method of testing interaction role is applied. The capital expenditure ratio index has been used for measuring managerial overconfidence. The results indicated that there is a positive and significant relationship between managerial overconfidence and abnormal fees for auditing services. Moreover, the stakeholder equity mechanisms undermine the relationship between managerial overconfidence and abnormal fee for auditing services.

کلیدواژه‌ها

Managerial overconfidence؛ Abnormal Audit fees؛ Stakeholder mechanisms