报告主题：CEO Political Ideology and Audit Pricing

报告人：董望 副教授（浙江大学）

时间：2017年5月11日（星期四），下午2:00-3:00

举行地点：综合楼802会议室

内容提要：

We examine the association between CEOs’ political ideologies and audit fees of the firms that the CEOs manage. We hypothesize and find that firms run by CEOs whose political ideologies are aligned with the Republican Party pay lower audit fees than firms run by CEOs whose political ideologies are aligned with the Democratic Party. This finding is robust to various sensitivity checks and to controls for potential endogeneity and self-selection concerns. In addition, we identify financial reporting quality and client business risk as two possible channels through which CEO political ideology affects audit fees, and show that CEO political ideology has a residual effect on audit fees even after controlling for these two channel variables. Finally, we find that the association between CEO political ideology and audit fees is more pronounced when corporate governance is weaker.