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【学术沙龙】第22期：Does Excess Cash Lead to Higher Audit Fees? Evidence from China
发布时间：2019-04-02
【时间】2019年4月3日(周三)15:00
【地点】威廉希尔williamhillB401会议室
【嘉宾】郭南廷 博士 南开大学威廉希尔williamhill会计系 副教授
【主题】Does Excess Cash Lead to Higher Audit Fees? Evidence from China
【摘要】Our study uses China’s data to explore the association between audit fees and excess cash. Prior studies (Gul and Tsai 1998, 2001; Griffin et al. 2010; Gleason et al. 2015) suggest that this association is positive because agency problems from excess cash magnify auditor business risk, which induce auditors to charge higher fees as compensation. However, we find that this association is negative for Chinese listed companies. We further find that this negative association is attributable to the institutional features of China, where auditor liabilities are not extended beyond the assurance of financial statements. Overall, our results highlight the importance of institutional regimes in shaping auditor perceptions and decisions. Future studies extending Jensen’s (1986) free cash flow argument to auditing research must carefully consider the validity of such extension given the institutional features of their empirical environments.