Political connections, political uncertainty and audit fees: evidence from Pakistan

Purpose This paper aims to examine the association between political connections, uncertainty and audit fees. The authors use various measures of connections uncertainty: (civil military), events (elections) a general measure stability (i.e. world bank index). Design/methodology/approach Audit fees reflect auditors’ perceptions risk. business risk, clients’ risk after controlling for variables used in prior fee research. Findings Results indicate that civil-connected firms pay significantly higher than non-connected owing instability civil-political connections. Military-connected lower stable form government. Furthermore, considering high leverage as return-on-assets (ROA) interact ROA with civil military results reveal these risks moderate relationship connection Election is independent associated General reinforces theme government risks. Originality/value combine cross-sectional or connections) time-dependent (general elections).