Determinants of Independent Audit Fees in Developed and Emerging Markets: A Comparison of Borsa Istanbul and Nasdaq

This study investigates the determinants of independent audit fees in developed and emerging markets, focusing on 40 companies from Borsa Istanbul (BIST) and 40 from Nasdaq between 2020 and 2023. Using panel data analysis, the study examines the effects of company size, revenue, complexity, financial leverage, audit opinion, auditor size, reporting lag, and return on assets on audit fees. The results reveal that company size and revenue have a positive and significant effect on audit fees in both markets, while complexity negatively influences fees. Financial leverage is significant only for BIST companies and return on assets is significant only for Nasdaq companies. Audit opinions affect audit fees positively in BIST and negatively in Nasdaq. No significant relationship was found between auditor size and audit fees in either market. Reporting lag increases audit fees in BIST but decreases them in Nasdaq. The findings highlight notable structural differences between developed and emerging markets and contribute to the broader literature on audit fee determinants. The study also emphasizes the evolving nature of audit fee disclosure, particularly in emerging markets like Turkey, suggesting that further research with expanded samples and timeframes could yield more comprehensive insights.