Macro-Level Environmental Factors and Audit Fee in Thailand
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Abstract
This study examines the relationship between macro-level environmental factors, represented by the PESTEL framework, and audit fees for companies listed on the Stock Exchange of Thailand (SET) in 2020. Using secondary data from 454 listed firms, the research incorporates 20 factors categorized into six dimensions—political (Pov), economic (Eco), social (Soc), technological (Tec), environmental (Env), and legal (Leg). Each dimension is further divided into positive and negative impacts, enabling a nuanced analysis. Audit fees serve as the dependent variable, while control variables include firm size, auditor type (Big4), and industry type.
A multiple linear regression analysis was conducted, with proportional scores calculated for each PESTEL dimension. Results reveal that controlling for industry type significantly enhances the explanatory power of the PESTEL framework. The economic dimension (Eco) emerged as the strongest determinant of audit fees, with both positive and negative economic impacts positively influencing fees. Conversely, negative technological (Tec_N) and legal (Leg_N) impacts exhibited differing relationships, underscoring the importance of disaggregated analysis.
Industry-level findings indicate that legal (Leg) and economic (Eco) factors are the most influential, followed by social (Soc), technological (Tec), and positive COVID-19 impacts (Cov_P). However, environmental factors (Env) showed no significant relationship with audit fees, suggesting context-specific dynamics within Thailand. Political factors (Pov), whether positive or negative, demonstrated minimal influence, reflecting limited relevance in audit fee determination.
This research contributes to the literature by highlighting the critical role of macro-level environmental factors in audit fee determination, with implications for practitioners and audit firms. The findings emphasize the need to integrate PESTEL-based insights into audit fee models to account for external risks, ensuring fees reflect the complexities of the auditing environment in Thailand.
Article Details
เนื้อหาและข้อมูลในบทความที่ลงตีพิมพ์ในวารสารสภาวิชาชีพบัญชี ถือเป็นข้อคิดเห็นและความรับผิดชอบของผู้เขียนบทความโดยตรงซึ่งกองบรรณาธิการวารสารไม่จำเป็นต้องเห็นด้วยหรือร่วมรับผิดชอบใด ๆ
บทความ ข้อมูล เนื้อหา รูปภาพ ฯลฯ ที่ได้รับการตีพิมพ์ในวารสารสภาวิชาชีพบัญชี ถือเป็นลิขสิทธิ์ของวารสารสภาวิชาชีพบัญชี หากบุคคลหรือหน่วยงานใดต้องการนำข้อมูลทั้งหมดหรือบางส่วนไปเผยแพร่ต่อหรือเพื่อกระทำการใดๆ จะต้องได้รับอนุญาตเป็นลายลักษณ์อักษรจากวารสารสภาวิชาชีพบัญชี ก่อนเท่านั้น
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