Management capabilities, financial distress, and audit fee

Document Type : Research Paper


Department of Accounting, Central Tehran Branch, Islamic Azad University, Tehran, Iran


Literature review indicates that there is a positive relationship between risk and audit fee. However, few studies have examined how auditors respond to the risk factors associated with senior management. In this study, we examine the relationship between Management capability and audit fee, taking into account the financial distress of firms. Accordingly, the necessary statistical tests are conducted through linear regression and 10Eviews, and 25SPSS software to test hypotheses and the information related to the firms listed on the stock exchange in 2009 - 2018. The multivariate regression method is used. The results indicate that Management capability negatively affects audit fee in firms with financial distress and has an inverse effect on firms without financial distress.


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Volume 13, Issue 2
July 2022
Pages 1261-1275
  • Receive Date: 05 August 2021
  • Revise Date: 19 September 2021
  • Accept Date: 21 October 2021