Governance Regulatory Changes, International Financial Reporting Standards Adoption, and New Zealand Audit and Non-Audit Fees: Empirical Evidence
Accounting and Finance, 2009

This study, by Professor Paul Griffin and co-authors David H. Lont from the University of Otago and Yuan Sun from UC Berkeley, examines the association between overseas and New Zealand governance regulatory reforms and New Zealand companies’ audit and non-audit fees.

Their models use temporal and International Financial Reporting Standards (IFRS) indicator variables to relate the timing of the fee changes to the incidence of the overseas and local reforms. Griffin and his co-authors find that audit fees increased in New Zealand over 2002–2006. Such increases associate reliably with the transition to and adoption of NZ IFRS and not with earlier overseas governance reforms.

This paper was a runner-up for the 2009 Peter Brownell Best Manuscript Award from Accounting & Finance.