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Managerial Incentives and Audit Fees: Evidence from the Mutual Fund Industry

TLDR
This article examined the relation between audit fees and managerial incentives in the mutual fund industry and found that audit fees are higher when managerial incentives are poor, and that managerial incentives were correlated with audit fees.
Abstract
We examine the relation between audit fees and managerial incentives in the mutual fund industry. Using proxies for managerial incentives based on fund organizational form, advisor compensation, and fund expenses, we find that audit fees are higher when managerial incentives are poor. Our results represent new evidence on the relation between audit fees and managerial incentives.

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Journal ArticleDOI

RETRACTED: The relationship between audit committees, compensation incentives and corporate audit fees in Pakistan

TL;DR: In this article, the authors examined the association between audit committees, compensation incentives and corporate audit fees in Pakistan by using the data of fifty firms that are listed on the Karachi Stock Exchange (KSE), Pakistan during the years of 2007-2011.
Journal ArticleDOI

Size Variables in Audit Fee Models: An Examination of the Effects of Alternative Mathematical Transformations

TL;DR: In this paper, the authors consider the mathematical transformations used for assets of different valuation complexity in audit fee models and find that more complexly valued assets are less likely to follow the traditional log transformation.
Journal ArticleDOI

Asset Liquidity and Mutual Fund Management Fees: Evidence from Closed-End Mutual Funds

TL;DR: In this article, the authors assess whether the liquidity of a closed-end mutual fund's investments is related to the management fee charged by the fund's investment advisor and find a significantly positive relationship between the percentage of level 3 assets (the least liquid securities) and management fees.
Posted Content

Investigating the Relationship between Institutional Ownership and Audit Fees

TL;DR: In this paper, the authors investigated the relationship between institutional ownership and audit fees in 50 firms listed in Tehran Stack Exchange and found that there is no meaningful relationship between the two factors.
References
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Journal ArticleDOI

The role of audits and audit quality in valuing new issues

TL;DR: In this paper, the authors propose a model in which audited reports are valuable to entrepreneurs who have private information and seek to share risks with investors, where the choice of auditor and the resulting audited report provide partial information about the entrepreneur's private information, and he resolves all remaining investor uncertainty by signalling with retained ownership.
Journal ArticleDOI

How Are Derivatives Used? Evidence from the Mutual Fund Industry

TL;DR: In this article, the authors investigate investment managers' use of derivatives by comparing return distributions for equity mutual funds that use and do not use derivatives and provide new evidence regarding the implications of cash flows and managerial gaming for the relation between performance and risk.
Journal ArticleDOI

The valuation of closed-end investment-company shares

TL;DR: In this article, the authors developed some theoretical principles concerning the valuation of shares of closed-end investment companies and examined the behavior of the cross-sectional estimates over time and a time-series analysis of average discounts.
Journal ArticleDOI

The structure of mutual fund charges

TL;DR: In this article, the authors provide an explanation for the diversity in investment strategies and fees of open-end mutual funds, and find that aggressive funds are sensitive to cash flows and are likely to rely on fees to dissuade redemptions.
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