Institutional Investors' Shareholding Feature,Property Right And The Audit Fee

Institutional investor is a special kind of financial institution whose shareholding ratio is between internal shareholders,small and medium-sized shareholders.Compared with small and medium-sized shareholders,they have excellent financial strengthness,strong infornation collection skills?processing ability and professional advantages.Only after nearly 20 years of exploration and development,institutional investors have become the dominant force in China's capital markets,which makes them no longer"voting with their feet"to protect its capital value,but rather through to take active intervention in the economy.,they have governance effect on enterprise management activity,institutional investors,the supervision of management is also a relief agency problem of another kind of governance mechanism.In recent years,institutional investors are the focus of academic attention,but more attention given to its governance effect and heterogeneity.Audit fees have always been the focus of attention of the academic community,the existing research shows that the factors which affect audit fees are increasing and expanding,including internal control quality,enterprise scale,economic development level,industry and so on.However,when studying the influencing factors of audit fees,most scholars ignore the important factor of institutional investors.The governance role of institutional investors can reduce the risk of auditor's audit failure to some extent,thus reducing the audit fees of accounting firms.In addition,there are some differences in the political relationship?internal control regulatory forces between state-owned enterprises and non-state-owned enterprises as well as in the legal risk they face.The nature of the ultimate controlling force also has a certain degree of influence on audit pricing itself(Guo and Li,2009).Therefore,this paper includes the property right nature into the scope of analysis.This paper makes a research on the relationship with the institutional investor shareholding feature(the ratio and heterogeneity)?property right and the audit fees,and regard the determinants of audit pricing theory,information asymmetry theory,principal-agent cost theory and cost-benefit principle as the theoretical basis of the related studies.By collecting and sorting data samples,we use the method of empirical study,and obtain the corresponding results,which provide some experience for the policy formulation department data.The conclusions of this paper are as follows:First,the property nature of central state-owned enterprises enhances the negative correlation between the shareholding ratio of institutional investors and audit fees.Second,the property nature of local state-owned enterprises weakens the negative correlation between the shareholding ratio of institutional investors and audit fees.Third,the property right nature of family enterprises weakens the negative correlation between the shareholding ratio of institutional investors and audit fees.Fourth,the property right nature of local state-owned enterprises weakens the negative correlation between the heterogeneity of institutional investors and audit fees,while the property right nature of central state-owned enterprises and family enterprises cannot play a role in the relationship between the heterogeneity of institutional investors and audit fees.