Abstract
Prior research indicates that the CEO has a significant impact on financial reporting decisions. However, there is limited research on the implications of CEO succession origin (hiring a CEO from the inside as opposed to from the outside) for auditors. We find that on average, audit fees are greater by about 8% when a CEO is hired from the outside than when a CEO is promoted from within. We also find that the CEO’s in-house experience (the number of years the CEO has worked in the firm
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