THE INFLUENCE OF CORPORATE GOVERNANCE STRUCTURE AND CONTROL VARIABLES ON EXTERNAL AUDIT FEES EMPIRICAL STUDY OF LISTED COMPANIES ON INDONESIAN STOCK EXCHANGE IN 2011-2012 WHICH AUDITED BY BIG FOUR ACCOUNTING FIRM

Abstract

The objective of this research is to examine the influence of corporate governance structure (board of commissioner and audit committee) and control variables (firm size, number of subsidiaries, long-term debt to total asset ratio, return on assets, inventory to total asset ratio, and receivable to total asset ratio) on external audit fees. This study employs analysis of 15 firms listed on the Indonesian Stock Exchange for the financial year 2011-2012. This study use classical assumption and regression analysis as estimation of the influence. The results of this study reveal that simultaneously board of commissioner, audit committee, and control variables influence significantly. It means that corporate governance structure can not measure how much the external audit fees individually. Control variables together with corporate governance elements take in part to influence this fee. In order to get better result, following research should extend its observation period and increase number of sample. To show the influence of corporate governance and control variable in general, the next research should include the banking and finance industry.