Unravelling the relationship between CEO succession origin and audit fees: the moderating role of educational reputation

Purpose This study examines the relationship between CEO succession origin, educational reputation and audit fees. Design/methodology/approach The study methodology involved utilizing all non-financial companies listed on the Indonesia Stock Exchange over the 2012–2021 period. Findings We show that CEO succession from internal origins has a significant positive relationship with the audit fees. Further, the relationship between CEO succession origin and audit fees is moderated by the educational reputation of the CEO. In addition, we show that our results are more pronounced in large firms, firms with accounting expert CEOs and those audited by non-Big4 firms. We do not find CEO gender relevant in this context. Research limitations/implications This research contributes to the determinants audit fees particularly in developing countries like Indonesia. We provide implications for shareholders and the other stakeholders relying on audit quality and financial statements of the firm. Originality/value We show that CEO succession origin could be an important factor affecting the audit quality.