期刊名称：International Journal of Business Research and Management (IJBRM)
电子版ISSN：2180-2165
出版年度：2021
卷号：12
期号：2
页码：50-75
出版社：Computer Science Journals
摘要：This study examines the association between a firm's environment, social and governance (ESG) risks and audit quality. We measure audit quality using two proxies: audit fees and discretionary accruals. ESG risk is measured using Representative Risk Index from the RepRisk AG database. Using a sample of public U.S. firms from the period between 2007 and 2016, we find that there is positive association between audit fess and ESG risk implying that firms pay higher audit fees when their ESG risk increase in order obtain higher quality audit services. We also find that there is a negative relationship between ESG risk measures and discretionary accruals suggesting firms assessed having high ESG risks do not manage their earnings as much. Overall, our results indicate that auditors take ESG risks of a firm into account when performing financial statements audit.
关键词：Environment; Social; and Governance Risks; Audit Quality; Firm Performance.
