Grace Lee Studies the Implications of CEO Succession Origin and In-House Experience for Audit Pricing

Assistant Professor Hye Seung (Grace) Lee’s co-authored article, “Implications of CEO Succession Origin and In-House Experience for Audit Pricing,” appears in the March 2019 volume of The Journal of Accounting, Auditing, and Finance. The paper finds that on average, auditor fees are about 8% greater when a CEO is hired from outside rather than when a CEO is promoted from within. Moreover, the article finds that in-house experience is negatively associated with audit fees – this suggests that CEO in-house experience enhances the CEO’s competence and lowers audit risk.