시간당감사보수와 감사품질에 대한 그룹회사 고정효과와 낮은 평균시간당감사보수 그룹회사의 감사품질

Many studies report individual fixed effects with respect to corporate decisions, performance or financial reporting quality, or disclosure policies. Another researches reports group’ common interests may affect group level decisions and performance for common incentives, including with respect to audit quality and audit fees. Korean news media recently raise concerns about audit fee per hour of group companies not consistent across the groups, which draws questions about possibility of lower audit quality. We investigate whether group level fixed effects are significant with respect to audit quality and audit fees, and lower levels of group company’s audit fee per hour indicates lower audit quality. We find that there exists significant group company fixed effects in audit fee per hour, audit quality, total audit fees and total audit hours, overall. Also we find that audit quality of group companies with the lower average audit fee per hour is significantly lower than the other counterparts, and their auditor selections or high bankruptcy likelihood do not make any differences on it. This study provides regulatory and practical insights with respect to group company’s behaviors to additionally consider levels of the group’s average audit fee per hour and audit quality.