The Empirical Study On The Effect Of Corporate Governance And Transparency Of Accounting Information On Audit Fees

Audit pricing is a specific operation process of the Certified Public Accountant audit mechanism, it is closely linked with the accounting firm’s market--competitive behavior and auditing practice. Therefore, auditing pricing plays an important role in the academic and practical research of Audit. According to foreign accounting theory and practice research, Audit fees are considered as the proxy variables of audit pricing.February5,2001, the U.S. Securities and Exchange Commission (SEC) requires U.S. listed companies to publicly disclose the cost of audit and related services, then, the west created an upsurge of studying Audit service price. December24,2001, China Securities Regulatory Commission (CSRC) requires listed companies to disclose the remuneration paid to the accounting firm, including the background of accounting firms, period of audit services, which provides an opportunity of the Empirical Study of Audit Fees in China.In recent decades, a lot of researchers studied the relationship of audit fees and corporate governance. The core concern of corporate governance is to solve the principal-agent problems. Audit, as the independent third party, focuses on supervision and assurance of companies to reduce information-asymmetry. Audit fees could be regard as the result of principal-agent.As we know, principal-agent caused information asymmetry. The high quality of information transparence can positively improve accounting earning and reduce analysts’errors. As a result, the cost of debt and equity can be reduced. So, companies should make effort to promote corporate governance and information disclosure.Based on the above background, this paper studied the relationship among corporate governance, information transparence and audit fees. The study combined normative and empirical research. Through the study, author found corporate governance and information transparences are negative correlated to audit fees, in the end of this paper, author recommended some suggestions to listed companies and accounting firms.Following is the basic structure of the paper:The first chapter is the Introduction, including the research background, significance of the paper, the research methods, the basic framework and expected innovations.The second chapter is the literature review section, including domestic and foreign scholars on relationship of the corporate governance, transparence of accounting information and audit fees. Each part of the literature review are summarized and categorized.The third chapter is the theoretical analysis and hypothesis, including the basic related concepts, such as Audit fees, transparency of accounting information and corporate governance. In addition, I analyzed the relationship among them from the theoretical aspects, then, elicited three hypotheses in my paper.The fourth chapter is the research design section, including the explanation of variables, models, and design of research programs.Chapter Ⅴ is the empirical results, which are analyzed by using descriptive statistical analysis and model regression analysis, and some related economic significance are explained.Chapter Ⅵ is the final part of the paper, based on the theoretical and empirical analysis, the conclusions and policy recommendations are summarized, besides, the related contributions and limitations are listed in the end of the paper.