Corporate political spending disclosure and audit fess: Evidence from the United States
Tracks
Jade 2
| Tuesday, July 2, 2024 |
| 2:15 PM - 2:40 PM |
Presenter
Mr Swadip Bhattacharjee
Phd Student
University Of Wollongong
Corporate political spending disclosure and audit fess: Evidence from the United States
Abstract
This study investigates the impact of corporate political spending disclosure (PSD) on audit fees. Using a sample of S&P 500 companies from 2011 to 2021, we find that corporate political spending disclosure has a positive impact on audit fees, and this effect is robust to a battery of sensitivity analyses and addressing endogeneity concerns. Cross-sectional analyses show that the positive impact of corporate political spending disclosure on audit fees is more pronounced in companies with more free cash flows and in the unregulated industries. However, better corporate governance and high-quality financial reporting could weaken the positive impact of PSD on audit fees. Additional analysis reveals that among the dimensions of PSD (disclosure, policy, and oversight), auditors only count the spending information related to amount and details of recipients (disclosure) in charging their audit fees. Overall, our study reveals how auditors perceive political connections in the US companies, providing valuable insights to help companies make informed decisions regarding PSD.
Biography
Mr. Swadip Bhattacharjee is a PhD student at the School of Business, University of Wollongong. He is conducting his research under the supervision of Dr. Xiaofei Pan, Dr. Serat Ali, and Dr. Abdullah Al Mamun. Swadip's research interests are diverse and encompass political connections, corporate governance, auditing, intellectual capital, and environmental behavior. His scholarly contributions have been recognized through acceptance at several prestigious conferences. Notably, his paper was accepted at the Academy of Management, the Accounting and Finance Association of Australia and New Zealand (AFAANZ), and the Sydney Banking and Financial Stability Conference. In addition to his research accomplishments, Swadip has extensive teaching experience in both Bangladesh and Australia, which enriches his academic profile and contributes to his comprehensive understanding of the field.
Discussant
Amanda White OAM
Deputy Associate Dean Education (learner Experience)
UTS
