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 language | English |
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Pages (from-to) | 79-118 |
Number of pages | 40 |
Journal | Cyprus Review |
Volume | 31 |
Issue number | 2 |
Publication status | Published - 1 Jan 2019 |
Keywords
- Audit fees
- Bail-in
- Cypriot banks
- Post-global financial crisis
- Pre-global financial crisis