An Empirical Study On The Impact Of Real Earnings Management On Audit Fees Of China's A-Share Listed Companies

The problem of earnings management in enterprises has always been a concern of scholars in the field of financial accounting.It is composed of accrued earnings management and real earnings management.With the continuous improvement of Chinese accounting standards and related regulations,the hidden and difficult supervision of real earnings management has attracted enterprise management choosing real earnings management to adjust corporate performance,even if real earnings management will increase the business risk of enterprises.At the same time,Chinese and foreign scholars'research on audit fees are not limited to general external factors but tending to potential risk factors.With the promotion and implementation of risk-oriented auditing,real earnings management has gradually become one of the potential factors affecting audit fees.Therefore,exploring the impact of real earnings management on audit fees is an urgent problem to be solved.This paper explores the impact of real earnings management of listed companies on audit fees and also exploring the the amount of abnormal cash flow,the abnormal product cost,and the abnormal discretionary cost which are the threes methods to achieve real earnings management.Considering that the motivation of listed companies adopting real earnings management and the principle of accounting prudence will also determine the direction of real earnings management,it is necessary to divide the real earnings managements into positive real earning management and reverse earnings management in the direction of real earnings management.Based on the literature reviews,this paper will review and comment on the home and abroad relevant theories of real earnings management and audit fees.Secondly,using the method of normative analysis through the relevant theory to analyze the impact of real earnings management on audit fees and the impact of the positive and negative of real earnings management on audit fees,then proposing three research hypotheses.Then,using the empirical research method to establish the multivariate linear regression model to test the hypothesis and conclude the research conclusion to find the significant relationship between the real earnings management and the audit fees.The conclusion are followed that real earnings management has a significant positive impact on audit fees;abnormal product costs have a significant positive impact on audit fees,and abnormal discretionary expenses and net abnormal cash flows have a significant adverse effect on audit fee;when the real earnings management direction is positive there is a correlation between the real earnings management and audit fees;when the real earnings management direction is negative there is no correlation between real earnings management and audit fees.Finally,based on the results of the research,this paper summarizes the significance and inspiration of the research results and also analyzes the limitations of the research.