Abstract
We extend prior research on corporate governance and non-audit services (NAS) by distinguishing between the management entrenchment region of management ownership and regions in which the interests of management and shareholders converge. Management entrenchment and convergence-of-interests regions were estimated for our sample of 5,198 Australian firm-years. NAS is negatively (positively) associated with management ownership in the convergence-of-interests (entrenchment) regions. However, using a sub-sample based on firms that have audit committees, we find the association between NAS and management ownership is confined to the entrenchment region, while audit committee strength is negatively associated with NAS fees across all management ownership regions.
Original language | English |
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Pages (from-to) | 409-436 |
Number of pages | 28 |
Journal | Australian Journal of Management |
Volume | 46 |
Issue number | 3 |
Early online date | 17 Aug 2020 |
DOIs | |
Publication status | Published - Aug 2021 |