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 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
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.
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.
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.
