This study examines the relationship between audit committee members with academic backgrounds and audit fees among companies listed on the Stock Exchange of Thailand (SET). The sample comprises 2,685 firm-year observations from 2019 to 2023.
The findings indicate that the mere presence of academics on audit committees does not significantly increase audit fees. However, the interaction between academic audit committee members and their compensation shows a positive and statistically significant relationship with audit fees. This suggests that appropriate compensation provides incentives for academics to perform their monitoring roles more effectively, leading auditors to charge higher fees. In addition, firm size and leverage are found to be positively associated with audit fees.
Overall, the study highlights that academics on audit committees can enhance governance quality, but their effectiveness depends on supportive mechanisms such as adequate remuneration.