Impact of the global financial crisis and resulting bail-in on the audit of cypriot banks

Petros Lois, Athina Christodoulou

Research output: Contribution to journalArticle

Abstract

This study aims to examine the impact of global financial crisis and the resulting bail-in on audit fees of Cypriot banks as a result of increased audit risks. It is investigated by examining audit fees charged to Cypriot banks during three sample periods: Pre-global financial crisis (2000-2007), post global financial crisis (2008-2012) and during bail-in period (2013-2015). This study includes a quantitative research design, including an audit fee regression model to examine the impact of global financial crisis and resulting bail-in on audit fees. The results reveal that auditors charged higher audit fees after the crisis period compared to pre-crisis period and a larger and more significant increase in audit fees continued during the bail-in period. This study also provides additional test carried out on controlling the connection of Cypriot banks with Greece and supplementary tests on the robustness of the model.

Original languageEnglish
Pages (from-to)79-118
Number of pages40
JournalCyprus Review
Volume31
Issue number2
Publication statusPublished - 1 Jan 2019

Keywords

  • Audit fees
  • Bail-in
  • Cypriot banks
  • Post-global financial crisis
  • Pre-global financial crisis

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