The Effect of Audit Partner Digitalization Expertise on Audit Fees

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dc.contributorAalto-yliopistofi
dc.contributorAalto Universityen
dc.contributor.authorMaghakyan, Arpine
dc.contributor.authorJarva, Henry
dc.contributor.authorNiemi, Lasse
dc.contributor.authorSihvonen, Jukka
dc.contributor.departmentDepartment of Accounting and Business Lawen
dc.contributor.groupauthorAudit Research Groupen
dc.date.accessioned2025-06-11T05:37:37Z
dc.date.available2025-06-11T05:37:37Z
dc.date.issued2025
dc.descriptionFunding Information: We thank Beatriz García Osma (editor), two anonymous reviewers, Mai Dao, David Hay, Sven Hörner, Seppo Ikäheimo, Emma-Riikka Myllymäki, Savvas Papadopoulos, Stefan Sundgren, Ann Vanstraelen, Marleen Willekens, Steven Young, participants at the EARNet Symposium 2023, the 2021 Hawai̒i Accounting Research Conference, the 2019 EARNet Doctoral Workshop, the 2019 EAA Doctoral Colloquium, the 2019 Ph.D. Colloquium at Victoria University of Wellington, and the seminar participants at Aalto University, University of Vaasa, and The University of Auckland for numerous comments and suggestions. Arpine Maghakyan acknowledges the HSE Foundation, the Jenny and Antti Wihuri Foundation, the OP Foundation, the Marcus Wallenberg Foundation, and the Foundation for Economic Education for their financial support. All errors are our own. Publisher Copyright: © 2023 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group.
dc.description.abstractThis study focuses on the effects of digitalization on the auditing industry and the impact of audit partner expertise in digitalization on audit fees. Using data from listed U.S. companies between 2016 and 2021, we document a statistically and economically significant audit fee premium for audit partners who specialize in digitalization. This premium is separate from the partner’s industry specialization and is strongest in industries with a high level of digitalization, especially during the first half of the sample period. Our subsample analysis shows that, while the premium appears to be diminishing in less digitalized industries, it remains significant in highly digitalized industries. This change may be due to the general increase in digitalization expertise among audit partners, leading to diminishing returns to specialization for less digitalized audits.en
dc.description.versionPeer revieweden
dc.format.extent22
dc.format.mimetypeapplication/pdf
dc.identifier.citationMaghakyan, A, Jarva, H, Niemi, L & Sihvonen, J 2025, 'The Effect of Audit Partner Digitalization Expertise on Audit Fees', European Accounting Review, vol. 34, no. 2, pp. 519-540. https://doi.org/10.1080/09638180.2023.2298433en
dc.identifier.doi10.1080/09638180.2023.2298433
dc.identifier.issn0963-8180
dc.identifier.issn1468-4497
dc.identifier.otherPURE UUID: e1f83ff9-b578-461c-9b20-25a6c2d36a08
dc.identifier.otherPURE ITEMURL: https://research.aalto.fi/en/publications/e1f83ff9-b578-461c-9b20-25a6c2d36a08
dc.identifier.otherPURE FILEURL: https://research.aalto.fi/files/182951846/BIZ_Maghakyan_Jarva_Niemi_Sihvonen_The_Effect_of_Audit_Partner_Digitalization_Expertise_on_Audit_Fees_2024pdfa1b.pdf
dc.identifier.urihttps://aaltodoc.aalto.fi/handle/123456789/136297
dc.identifier.urnURN:NBN:fi:aalto-202506114550
dc.language.isoenen
dc.publisherTaylor & Francis
dc.relation.fundinginfoWe thank Beatriz García Osma (editor), two anonymous reviewers, Mai Dao, David Hay, Sven Hörner, Seppo Ikäheimo, Emma-Riikka Myllymäki, Savvas Papadopoulos, Stefan Sundgren, Ann Vanstraelen, Marleen Willekens, Steven Young, participants at the EARNet Symposium 2023, the 2021 Hawai̒i Accounting Research Conference, the 2019 EARNet Doctoral Workshop, the 2019 EAA Doctoral Colloquium, the 2019 Ph.D. Colloquium at Victoria University of Wellington, and the seminar participants at Aalto University, University of Vaasa, and The University of Auckland for numerous comments and suggestions. Arpine Maghakyan acknowledges the HSE Foundation, the Jenny and Antti Wihuri Foundation, the OP Foundation, the Marcus Wallenberg Foundation, and the Foundation for Economic Education for their financial support. All errors are our own.
dc.relation.ispartofseriesEuropean Accounting Reviewen
dc.relation.ispartofseriesVolume 34, issue 2, pp. 519-540en
dc.rightsopenAccessen
dc.rightsCC BY-NC-ND
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/
dc.titleThe Effect of Audit Partner Digitalization Expertise on Audit Feesen
dc.typeA1 Alkuperäisartikkeli tieteellisessä aikakauslehdessäfi
dc.type.versionpublishedVersion

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