The association between abnormal fee information and abnormal loan loss provisions-A case of banking industry

• Main Authors: Jhih-Chen Wang, 王之岑
• Other Authors: Yueduan Guan
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/67472504539548062035

碩士 === 銘傳大學 === 會計學系碩士班 === 100 === This study aims to investigate how abnormal fees affect abnormal loan loss provisions. Fee information includes abnormal audit fees, abnormal non-audit fees, abnormal total audit fees, and the ratio of abnormal non-audit fees to abnormal total audit fees. Our research sample focuses on Taiwanese listed banks which reach the thresholds of fees disclosure regulation of Securities and Futures Bureau during 2003-2010. The empirical results show that the abnormal non-audit fees, abnormal total audit fees, and abnormal non-audit fees to abnormal total audit fees all have negative association with abnormal loan loss provisions, which suggests that auditors allow clients with higher abnormal non-audit fees or total fees or non-audit fee ratio more earnings management. In other words, auditor decisions are affected by economic dependence effect to some degree. In contrast, the abnormal audit fees has significantly positive association with abnormal loan loss provisions, indicating that auditor require clients with larger abnormal audit fees report more conservative financial results which reflects that abnormal audit fees implies risk premium component.