This paper investigates whether foreign ownership affects audit fees by analyzing share-holdings of listed firms from Western European countries. The results show that foreign ownership is an important factor that drives the demand for audit services. However, the willingness to pay higher audit...

In a large sample of private Spanish subsidiaries, we observe a significantly greater incidence of modified audit reports in foreign than in local group subsidiaries. Results are consistent with foreign group subsidiaries having lower incentives to avoid receiving modified audit opinions (MAOs)...