The remainder of this paper is organized as follows. Section 2 reviews the literature on audit fees and corporate
governance. Section 3 develops the research hypotheses, which are grounded in theoretical analysis.
Section 4 describes the data and variables. The full sample and subsample regression results are provided
in Sections 5 and 6, respectively. Section 7 reports the result of a sensitivity test and Section 8 concludes
the paper.