The Association between Agency Problem of Family Firms Audit Fee and Information Transparency

Abstract

Family firms are an important part of the economic development of the world Since family firms are the majority in Taiwan’s companies our research investigates the impact of agency problems in family firms on audit fee and information transparency In the aspect of audit fees we take Taiwanese listed companies which disclose the amount of audit fees from 2009 to 2017 as our sample For information transparency we choose Taiwanese listed companies from 2005 to 2014 and take information transparency score as the proxy variable for detecting the correlation between family firms and information transparency The results reveal that family firms incur lower audit fees than non-family firms and regardless of the type of agency problem in family firms family firms always incur lower audit fees In addition family firms provide less disclosure than non-family firms However family firms may provide more information when they face the more severe Type Ⅱ agency problems

Date of Award	2019
Original language	English
Supervisor	Yu-Ting Hsieh (Supervisor)