대리인문제, 경영자 능력, 초과현금과 감사노력

[Purpose] This study analyzes the impact of managerial ability on the relationship between excess cash holdings and audit effort. Additionally, it examines whether this relationship varies depending on the likelihood of agency problem. [Methodology] The study sampled 6,822 firm－year observations from non－financial companies listed on the Korea Exchange between 2000 and 2014. Multiple regression analysis was conducted to test the hypotheses. [Findings] We find that higher managerial ability weakens the positive impact of excess cash on audit effort. Moreover, the effect of managerial ability in mitigating the positive relationship between excess cash holdings and audit efforts is more pronounced in cases with a lower likelihood of agency problem, such as when the manager is an owner manager or when excess cash is reduced. [Policy Implications] This study provides unique insights by verifying that managerial ability is a factor influencing the relationship between excess cash and audit effort and that its effect is more significant when the likelihood of agency problem is low. The results offer valuable evidence for designing policies and control systems related to excess cash holdings. Furthermore, they can serve as a basis for determining audit hours and fees by identifying factors that affect external audit efforts.