Author(s): Aree Saeed Mustafa, Ayoib B Che-Ahmad, Sitraselvi A.P. Chandren
The aim of this paper is to investigate the influence of minority shareholders’ rights on client's demand for audit quality. Specially, this paper investigates the impact of shareholders' with at least 10% holdings on clients' demand for audit quality. The sample consists of the top 100 listed firms on the Borsa Istanbul (BIST) for 2014 and 2015. The result is aligned with the suggestions of the agency theory that shareholders with at least 10% holdings increase clients’ involvement with audit quality. The results propose direction for future studies on the role of shareholders to monitor management behavior. This paper calls for future studies in the area of accounting and finance to operationalize a new measurement of Type II agency cost in order to better understand the agency conflicts and the state of the shareholders on the BIST.