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Int. J. Financial Stud. 2018, 6(4), 92; https://doi.org/10.3390/ijfs6040092

The Impact of Union of European Football Associations (UEFA) Financial Fair Play Regulation on Audit Fees: Evidence from Spanish Football

1
Department of Financial Economics and Accounting, Faculty of Business and Tourism, University of Vigo, Campus Universitario, s/n, 32004 Ourense, Spain
2
Department of Finance, School of Economics and Management, National Research University Higher School of Economics, 194100 St. Petersburg, Russia
3
Department of Financial Economics and Accounting, Faculty of Social Sciences and Communication, University of Vigo, Campus A Xunqueira, s/n, 36005 Pontevedra, Spain
*
Author to whom correspondence should be addressed.
Received: 19 September 2018 / Revised: 7 November 2018 / Accepted: 7 November 2018 / Published: 13 November 2018
(This article belongs to the Special Issue Sports Finance 2018)
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PDF [469 KB, uploaded 13 November 2018]
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Abstract

This paper analyzes whether the Financial Fair Play (FFP) regulations set by Union of European Football Associations (UEFA) have influenced the auditing fees charged to football clubs. In addition, it explores the determinants of audit fees. We used a two-sample t-test with equal variances to determine whether differences are present. After this, we carried out a panel data regression with the clubs fix effect to estimate the determinants of audit fees in football clubs. Our findings revealed an increase of audit fees after the implementation of FFP regulations. On top of that, audit fees were explained by the presence of foreign investors if the audit firm was one of the Big 4 and if the auditor was a woman. The regulation change has had an impact on the audit fees charged by auditors for their services. However, this increase may be compensated over future years given the improving financial situation of clubs; therefore, the auditors’ risk diminishes and subsequent audit fees may be reduced. UEFA should monitor audit fees as well as the quality of the audit reports, which have become crucial to obtaining the license to participate in UEFA competitions. View Full-Text
Keywords: football; audit fees; audit shopping; Financial Fair Play; UEFA; JEL Classification; Z2; M41; M42 football; audit fees; audit shopping; Financial Fair Play; UEFA; JEL Classification; Z2; M41; M42
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Mareque, M.; Barajas, A.; Lopez-Corrales, F. The Impact of Union of European Football Associations (UEFA) Financial Fair Play Regulation on Audit Fees: Evidence from Spanish Football. Int. J. Financial Stud. 2018, 6, 92.

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