Research On The Impact Of Executive Incentives On Audit Pricing

With the continuous development of the economy,the demand for talents has become more and more intense in modern society.As the representatives of talents,the social needs of executives become more and more.The executive compensation is an important factor attracting high-quality talents,constantly rising,especially entering the 21 st century,the sky-high salary has emerged endlessly.Research on executive compensation has become a hotspot.At the same time,the emergence of various financial fraud scandals has reminded people of the relationship between executive incentives and financial fraud.Under the modern corporate governance environment,the contradiction brought about by the principal-agent relationship triggers the agency cost,and the owner adopts measures to ease the agency cost.The main measure which can solve the problem is supervision and incentive measures for the operators,and the supervision measures are too tough,sometimes aggravating contradictions and inspiring.The methods mainly include salary incentives and equity incentives.Compensation incentives have been in existence for a long time.Most companies have adopted them.Salary incentives have focused on short-term effects.Equity incentives were generated in the United States in the 20 th century and started late in China development until 21 th century.At the beginning of the century,equity incentives had achieved initial development in China.In 2006,China's government issued the "Measures for the Management of Listed Companies' Stock Incentives" to regulate the behavior of stock incentives.Stock incentives were implemented in most listed companies.Equity incentives can increase the diligent duties of senior executives while reducing incentives for executives.The cost relieves the principal-agent conflict.As an independent organization independent of the owner and operator of the enterprise,the audit implements audit procedures for the company's operating conditions,issues fair audit reports,supervises the self-interest of the senior management,and according to the audit risk,the Certified Public Accountant will adopt different audit procedures.,And then there will be different audit pricing,study the relationship between audit pricing and executive incentives,and enrich the study of audit pricing and executive incentives.It is of great value to improve the company's compensation system and protect the interests of investors.By studying the impact of executive incentives on audit pricing,according to the different types of executive incentives,executive incentives are divided into equity incentives and incentive incentives to conduct research,respectively,while also based on the nature of property rights to return to the study of the relationship between the two,and to compare Analysis,empirical analysis shows that executive compensation incentives have a significant positive correlation with audit pricing,and executive equity incentives have a significant negative correlation with audit pricing.From the nature of property rights,compared with state-owned enterprises,non-state-owned enterprise executives have incentives.The impact on audit pricing is even more significant,which enriches the relevant content of corporate governance and helps to promote the improvement of the company's compensation system.The main body of the paper is divided into five parts.The first part is the introduction.It mainly discusses the research background and research significance of the relationship between executive incentive and audit pricing,executive incentives,audit pricing and related literature research on the relationship between the two,and makes a literature review.Summarized the framework of the research ideas and research methods,innovation points;the second part of the definition of the concept involved in this article and a brief introduction of the theoretical basis cited in this paper;the third part of the theoretical basis for theoretical analysis,and put forward hypotheses,and select the year during 2012-2016,11785 data of 2854 listed companies in Shanghai and Shenzhen A stocks were studied,and a research model was constructed.The current ratio,ROA,debt ratio(Lev),Tobin Q(TBQ),and total assets(Size)were selected.,firm size(Big4),audit opinion(OP)as control variables.The fourth part returns on the basis of the model and data of the fourth part;the fifth part draws conclusions and recommendations.