The evolution of corporate governance has created a competitive environment among the companies to catch the attention of investor＇s confidence. This paper aims to examine the relationship between the audit committee...The evolution of corporate governance has created a competitive environment among the companies to catch the attention of investor＇s confidence. This paper aims to examine the relationship between the audit committee attributes and the audit fees. Specifically, this paper aims to examine the effects of audit committee expertise （number of financial-related director＇s trainings and experience） on audit fees. The data are obtained from annual reports of the population of Bursa Malaysia listed companies for both Main and Ace markets in year 2008. The results show that audit committee size is significant and has a positive association with audit fees. However, audit committee＇s financial related training is significant and has a negative association with audit fees. These results suggest that financial training of audit committee could have an impact on the lower audit fees. However, audit committee expertise is significant and has a positive association with audit fees. This suggests that financial-related training is needed in order to enhance the expertise of audit committee members.展开更多
Summarizing many audit service pricing models, we use the method ‘stepwise’ of OLS to establish our audit service pricing. And then, we get a result that the four factors determine audit fees and total assets at yea...Summarizing many audit service pricing models, we use the method ‘stepwise’ of OLS to establish our audit service pricing. And then, we get a result that the four factors determine audit fees and total assets at year-end and sales of the current year are complementary each other in measuring the auditee size better than respectively.展开更多
As one of the alternative variables of audit quality, audit fees have been researched widely in the Mainboard of China stock market, but empirical research based on the GEM （Growth Enterprise Market） of China is ver...As one of the alternative variables of audit quality, audit fees have been researched widely in the Mainboard of China stock market, but empirical research based on the GEM （Growth Enterprise Market） of China is very few. From the perspective of GEM of China, this article observes and studies the impact of corporate governance structure represented by board of directors and independent directors on audit fees. This article selects the data of 348 listed companies in the GEM of China in 2012, proves that there is a positive correlation between the number of meetings, independent directors＇ salaries and audit fees through the use of multiple linear regression model, and accordingly proposed suggestions that improve the corporate governance structure of the GEM of China.展开更多
The audit industry in China has developed rapidly in recent years, the formulation of national policy also needs the support of audit industry. The number of accounting firms has been increasing, and the final audit q...The audit industry in China has developed rapidly in recent years, the formulation of national policy also needs the support of audit industry. The number of accounting firms has been increasing, and the final audit quality in the audit is one of the most concerned by the public. Any product quality and price are equivalent, the higher the cost of investment, the better the quality, the higher the price. The audit process is also the case. This paper is mainly based on the relevant audit fees and audit quality is the summary of the existing research results on the relationship between the two for further exploration, consider the audit pricing regulation and audit industry brand and scale effect, and put forward to improve the audit fees and audit quality relationship advice.展开更多
Based on the data of 923 Chinese listed companies in 2013 to 2014, we investigated the impact of company equity structure on audit fees from the perspective of cross section and period duration. It is found that there...Based on the data of 923 Chinese listed companies in 2013 to 2014, we investigated the impact of company equity structure on audit fees from the perspective of cross section and period duration. It is found that there is a positive correlation between the proportion of state-owned shares in listed companies and audit fees. To be more specific, there is a U-shaped relation between audit fees and equity concentration which is represented by the proportion of the largest shareholder. And the equity restriction ratio, represented by the sum of the proportion of the second largest shareholder to the tenth, has a positive effect on audit fees.展开更多
This article takes listed companies in China's A-share market that underwent voluntary auditor changes from 2021 to 2024 as the research object,and empirically examines the impact of voluntary auditor changes on c...This article takes listed companies in China's A-share market that underwent voluntary auditor changes from 2021 to 2024 as the research object,and empirically examines the impact of voluntary auditor changes on corporate audit fees.The research results show that:(1)voluntary auditor changes significantly reduce corporate audit fees,indicating that companies have bargaining advantages in auditor selection and can achieve cost savings by changing auditors;(2)The new regulatory regulations released in 2023 have significantly changed the audit pricing mechanism,so that voluntary changes no longer have a fee reduction effect;(3)When establishing an audit committee for a company,voluntary auditor changes can significantly reduce audit fees;(4)When state-owned enterprises voluntarily change auditors,the cost reduction effect of audit fees is more significant;(5)Voluntary auditor changes have partially mediated the cost reduction effect on audit fees by reducing the proportion of non audit services.This article provides empirical evidence for enterprises to optimize their auditor selection strategies,and also provides insights for regulatory authorities to identify irrational low price competition in the audit market and regulate pricing order.展开更多
This article investigates the relationship between fees for audit and non-audit services with Tobin's Q.Using a sample of Brazilian public companies in the period from 2009 to 2011,we estimate the association betw...This article investigates the relationship between fees for audit and non-audit services with Tobin's Q.Using a sample of Brazilian public companies in the period from 2009 to 2011,we estimate the association between Tobin's Q and the auditors'remuneration scaled by total assets.Additionally,to strengthen the conclusions,we present a second model with the remuneration of the auditors in absolute terms.The results suggest a significant relationship between Tobin's Q and audit and non-audit fees,positive and negative,respectively.Specifically,increases in audit fees and non-audit fees respectively increase and decrease the Tobin's Q of the audited company.The results of this study have important implications for those interested in good corporate governance practices.Managers and board members concerned with value carefully evaluate the remuneration and nature of services creation,when engaging independent auditors,should provided.展开更多
This paper examines the effects of CFO narcissism on audit fees in China.Using the size of CFO signatures in annual audit reports to measure individual narcissism,we find that CFO narcissism is associated with higher ...This paper examines the effects of CFO narcissism on audit fees in China.Using the size of CFO signatures in annual audit reports to measure individual narcissism,we find that CFO narcissism is associated with higher audit fees.We find empirical evidence that CFO narcissism significantly increases the audit fees of listed companies,and this effect is stronger in state-owned enterprises.This paper also explores the mediating effects of financial information and the engagement of prestigious Big-4 and Big-10 firms.The results show that companies with narcissistic CFOs have lower quality financial information and prefer more prestigious firms,which leads to higher audit fees.This research highlights the importance of CFO narcissism in corporate performance and provides new evidence that will be useful for listed companies that plan to hire senior executives.展开更多
This study uses data from companies listed on the Shanghai Stock Exchange to investigate the relationship between corporate governance and audit fees. Full sample results reveal a significant negative relationship bet...This study uses data from companies listed on the Shanghai Stock Exchange to investigate the relationship between corporate governance and audit fees. Full sample results reveal a significant negative relationship between corporate governance and audit fees, and subsample results further show that corporate governance's influence on audit fees is affected by corporate growth. The negative relationship between corporate governance and audit fees is economically and statistically significant in sample companies that grew moderately during the sample period, and mixed or insignificant in companies that experienced overly fast or negative growth.展开更多
This research contributes to understanding the spillover effect of customer digital transformation along the supply chain.We take a supply chain relationship perspective to explore the influence of customers’digital ...This research contributes to understanding the spillover effect of customer digital transformation along the supply chain.We take a supply chain relationship perspective to explore the influence of customers’digital transformation on suppliers’audit fees and find a significant reduction in such fees when customers undergo digital transformation.An economic mechanism analysis reveals that this transformation reduces audit fees by lowering the risks and costs encountered by auditors.This is achieved by mitigating suppliers’business risks and improving earnings quality.Heterogeneity analysis reveals that the impact of customers’digital transformation on suppliers’audit fees is more pronounced when the supply chain is geographically distant,suppliers with more specific investments and with high levels of market competition.展开更多
The existing literature on audit opinion shopping provides inconsistent evidence on whether such shopping has any association with abnormal audit fees. In this paper, we hypothesize that firms engage in audit opinion ...The existing literature on audit opinion shopping provides inconsistent evidence on whether such shopping has any association with abnormal audit fees. In this paper, we hypothesize that firms engage in audit opinion shopping and pay an abnormal audit fee only when their degree of accounting quality is low. To examine the issue, we group firms on the basis of their change in return on assets(ROA), and show that abnormal audit fees improve audit opinions only among firms that engage local auditors and have a low degree of ROA, but report a large increase in ROA, especially when the ROA change is the result of abnormal accruals. We find no association between abnormal audit fees and audit opinion improvement for other firms.展开更多
文摘The evolution of corporate governance has created a competitive environment among the companies to catch the attention of investor＇s confidence. This paper aims to examine the relationship between the audit committee attributes and the audit fees. Specifically, this paper aims to examine the effects of audit committee expertise （number of financial-related director＇s trainings and experience） on audit fees. The data are obtained from annual reports of the population of Bursa Malaysia listed companies for both Main and Ace markets in year 2008. The results show that audit committee size is significant and has a positive association with audit fees. However, audit committee＇s financial related training is significant and has a negative association with audit fees. These results suggest that financial training of audit committee could have an impact on the lower audit fees. However, audit committee expertise is significant and has a positive association with audit fees. This suggests that financial-related training is needed in order to enhance the expertise of audit committee members.
文摘Summarizing many audit service pricing models, we use the method ‘stepwise’ of OLS to establish our audit service pricing. And then, we get a result that the four factors determine audit fees and total assets at year-end and sales of the current year are complementary each other in measuring the auditee size better than respectively.
文摘As one of the alternative variables of audit quality, audit fees have been researched widely in the Mainboard of China stock market, but empirical research based on the GEM （Growth Enterprise Market） of China is very few. From the perspective of GEM of China, this article observes and studies the impact of corporate governance structure represented by board of directors and independent directors on audit fees. This article selects the data of 348 listed companies in the GEM of China in 2012, proves that there is a positive correlation between the number of meetings, independent directors＇ salaries and audit fees through the use of multiple linear regression model, and accordingly proposed suggestions that improve the corporate governance structure of the GEM of China.
文摘The audit industry in China has developed rapidly in recent years, the formulation of national policy also needs the support of audit industry. The number of accounting firms has been increasing, and the final audit quality in the audit is one of the most concerned by the public. Any product quality and price are equivalent, the higher the cost of investment, the better the quality, the higher the price. The audit process is also the case. This paper is mainly based on the relevant audit fees and audit quality is the summary of the existing research results on the relationship between the two for further exploration, consider the audit pricing regulation and audit industry brand and scale effect, and put forward to improve the audit fees and audit quality relationship advice.
文摘Based on the data of 923 Chinese listed companies in 2013 to 2014, we investigated the impact of company equity structure on audit fees from the perspective of cross section and period duration. It is found that there is a positive correlation between the proportion of state-owned shares in listed companies and audit fees. To be more specific, there is a U-shaped relation between audit fees and equity concentration which is represented by the proportion of the largest shareholder. And the equity restriction ratio, represented by the sum of the proportion of the second largest shareholder to the tenth, has a positive effect on audit fees.
基金supported by the National Natural Science Foundation of China under Grant No.72362001titled'Compensation Incentive Mechanism of Accounting Firms:Theoretical Framework,Incentive Effect Test,and Optimization Reconstruction'.
文摘This article takes listed companies in China's A-share market that underwent voluntary auditor changes from 2021 to 2024 as the research object,and empirically examines the impact of voluntary auditor changes on corporate audit fees.The research results show that:(1)voluntary auditor changes significantly reduce corporate audit fees,indicating that companies have bargaining advantages in auditor selection and can achieve cost savings by changing auditors;(2)The new regulatory regulations released in 2023 have significantly changed the audit pricing mechanism,so that voluntary changes no longer have a fee reduction effect;(3)When establishing an audit committee for a company,voluntary auditor changes can significantly reduce audit fees;(4)When state-owned enterprises voluntarily change auditors,the cost reduction effect of audit fees is more significant;(5)Voluntary auditor changes have partially mediated the cost reduction effect on audit fees by reducing the proportion of non audit services.This article provides empirical evidence for enterprises to optimize their auditor selection strategies,and also provides insights for regulatory authorities to identify irrational low price competition in the audit market and regulate pricing order.
文摘This article investigates the relationship between fees for audit and non-audit services with Tobin's Q.Using a sample of Brazilian public companies in the period from 2009 to 2011,we estimate the association between Tobin's Q and the auditors'remuneration scaled by total assets.Additionally,to strengthen the conclusions,we present a second model with the remuneration of the auditors in absolute terms.The results suggest a significant relationship between Tobin's Q and audit and non-audit fees,positive and negative,respectively.Specifically,increases in audit fees and non-audit fees respectively increase and decrease the Tobin's Q of the audited company.The results of this study have important implications for those interested in good corporate governance practices.Managers and board members concerned with value carefully evaluate the remuneration and nature of services creation,when engaging independent auditors,should provided.
文摘This paper examines the effects of CFO narcissism on audit fees in China.Using the size of CFO signatures in annual audit reports to measure individual narcissism,we find that CFO narcissism is associated with higher audit fees.We find empirical evidence that CFO narcissism significantly increases the audit fees of listed companies,and this effect is stronger in state-owned enterprises.This paper also explores the mediating effects of financial information and the engagement of prestigious Big-4 and Big-10 firms.The results show that companies with narcissistic CFOs have lower quality financial information and prefer more prestigious firms,which leads to higher audit fees.This research highlights the importance of CFO narcissism in corporate performance and provides new evidence that will be useful for listed companies that plan to hire senior executives.
基金supported by a Nanjing University IAPHD Projectsponsored by the Qing Lan Project of Jiangsu Province
文摘This study uses data from companies listed on the Shanghai Stock Exchange to investigate the relationship between corporate governance and audit fees. Full sample results reveal a significant negative relationship between corporate governance and audit fees, and subsample results further show that corporate governance's influence on audit fees is affected by corporate growth. The negative relationship between corporate governance and audit fees is economically and statistically significant in sample companies that grew moderately during the sample period, and mixed or insignificant in companies that experienced overly fast or negative growth.
基金support provided by the Fundamental Research Funds for the Central Universities,Zhongnan University of Economics and Law(202411107).
文摘This research contributes to understanding the spillover effect of customer digital transformation along the supply chain.We take a supply chain relationship perspective to explore the influence of customers’digital transformation on suppliers’audit fees and find a significant reduction in such fees when customers undergo digital transformation.An economic mechanism analysis reveals that this transformation reduces audit fees by lowering the risks and costs encountered by auditors.This is achieved by mitigating suppliers’business risks and improving earnings quality.Heterogeneity analysis reveals that the impact of customers’digital transformation on suppliers’audit fees is more pronounced when the supply chain is geographically distant,suppliers with more specific investments and with high levels of market competition.
文摘The existing literature on audit opinion shopping provides inconsistent evidence on whether such shopping has any association with abnormal audit fees. In this paper, we hypothesize that firms engage in audit opinion shopping and pay an abnormal audit fee only when their degree of accounting quality is low. To examine the issue, we group firms on the basis of their change in return on assets(ROA), and show that abnormal audit fees improve audit opinions only among firms that engage local auditors and have a low degree of ROA, but report a large increase in ROA, especially when the ROA change is the result of abnormal accruals. We find no association between abnormal audit fees and audit opinion improvement for other firms.
