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May 28

Strategy Fit in Supply Chain Relationship and Supplier Audit Fees

Location:

Ph.D. Candidate Sheng Liu of Accounting Department will be defending his dissertation titled, “Strategy Fit in Supply Chain Relationship and Supplier Audit Fees” on 05/28/2021.

The time and location of his dissertation defense is 9:30 - 11:30am, on Zoom.

Many thanks to Sheng’s dissertation committee: • Committee Chair – Hsihui Chang – Professor – Drexel University • Committee Co-Chair: Anthony Curatola – Professor – Drexel University • Committee Member Barbara Grein - Associate Professor – Drexel University • Committee Member: Xin Dai, - Assistant Professor – Drexel University • Committee Member: Johnny Lee – Associate Professor – Drexel University

Abstract: This study examines whether the strategic fit between supply chain participants is associated with supplier audit fees. I posit that strategic fit should enhance the trust and information sharing between trading partners and mitigate the business risk and inherent risk of suppliers, thereby leading to lower audit fees. I utilize regulation-mandated major customer disclosure to construct a dataset consisting of supplier-customer dyads to investigate this proposition. The empirical results support my hypothesis. In addition, the results indicate that if auditors are industry specialists or have long tenures, they are more likely to recognize the benefits of strategic fit and lower the audit fees. Moreover, the results also show that when both parties are prospectors, strategic fit can help reduce audit fees for suppliers, more than when both follow defender strategies.

PhD Candidate