Determinants of audit fees: Evidence from Poland

Figures & Tables

Variables	Expected impact	Description of the variable
*lnAuditFee*	N/A	Natural logarithm of the amount of audit fees for conducting a mandatory audit of an entity's financial statement in the period covered by the statement (including fees for reviews of financial statements)
*lnTOTALASSETS*	+	Natural logarithm of the total assets
*BIG4*	+	Discrete variable coded as 1 if a company's auditor is Deloitte, EY, KPMG or PwC, and 0 in other cases
*MERGE*	+	Discrete variable coded as 1 if there was a merger or acquisition of entities forming a corporate group during a financial year and 0 in other cases
*LEVERAGE*	+	Company's debt to total assets ratio
*Complexity*	+	A company's total short- and long-term receivables and inventories
*Foreign*	+	The ratio of the number of foreign companies in a corporate group to the number of all companies forming the corporate group
*lnSales2018*	+	Natural logarithm of sales volume in 2018

Variable	Mean	Standard deviation	Min	Max
AuditFee	598,957	1,028,801	16,000	5,881,000
TOTALASSETS	5,478,254,619	12,263,775,906	34,686,420	75,905,000,000
BIG4	0.6306306	0.4848229	0	1
MERGE	0.2432432	0.4309865	0	1
LEVERAGE	0.1638752	0.1459938	0	1
Complexity	0.3086383	0.2124534	0.0061615	0.8692479
Foreign	0.2534987	0.2651958	0	0.9545455
Sales2018	4,488,839,727	11,919,499,823	17,486,560	109,706,000,000

	*lnTOTALASSETS*	*BIG4*	*MERGE*	*LEVERAGE*	*Complexity*	*Foreign*	*lnSales2018*
*lnTOTALASSETS*	1
*BIG4*	0.4497^*	1
*MERGE*	0.1461		1
*LEVERAGE*	0.1153	0.3038^*	0.1318	1
*Complexity*	−0.1528	−0.2342^*	−0.097	0.3808^*	1
*Foreign*	−0.0311	0.0733	−0.0311	0.118	0.0544	1
*lnSales2018*	0.8593^*	0.3053^*	0.1612	0.2627^*	0.0893	−0.1229	1