Financialization Of Physical Enterprises,Media Attention And Audit Fees

In recent years,the issue of financialization of Chinese entities has aroused widespread concern from all walks of life.During the period of China's economic transformation,due to the obvious profit gap between the real industry and the financial and real estate industries,more and more real enterprises are involved in financial assets and real estate investment to obtain higher and faster returns.The trend of real enterprises financialization It becomes more obvious.The financialization of entity enterprises has boosted the development of enterprises to a certain extent,but it has also brought more problems.For example,some entities with a higher degree of financialization have caused operational risks,which are not conducive to the long-term interests of shareholders and investors.Even produce certain financial risks.Therefore,in the context of the increasingly prominent background of "removing the real to the virtual" of enterprise development,how to identify and prevent risks in the process of enterprise financialization has become one of the research hotspots in maintaining the steady progress of China's economy.The principal-agent theory is established on the basis of the information asymmetry theory.It mainly refers to the separation of the two rights.The owner of the company as the principal transfers the management right under the premise of retaining the ownership,and hires a more professional agent to replace him.Manage the company to maximize revenue,and the remuneration paid to the agent accordingly constitutes the agency cost.When the principal-agent relationship deviates from the interests,there will be a "crowding-out effect".This effect refers to the fact that the total amount of resources available to the enterprise for distribution is fixed.If the manager prioritizes the limited resources to invest in short-term financial assets,it will use The resources invested in physical assets will decrease,that is,investment in physical assets will be "crowded out" by investment in financial assets.According to the audit insurance theory,auditing plays the role of a risk transfer mechanism in the principal-agent relationship.In the principal-agent relationship,the principal needs to obtain the management information of the manager through financial audit.When there is a deviation of interests,this will cause financial statement risks.The auditor acts as a risk The transferred party bears the risk,and the audit fee is the financial compensation for the auditor to bear the financial risk.Based on the above theoretical relationship,this article mainly discusses the following three aspects:(1)The higher the degree of financialization of the entity enterprise,the higher the audit fee;(2)In the context of enterprise financialization,whether news media reports as an external governance mechanism Effectively disseminate capital market information,thereby affecting auditors' risk perception of financialized enterprises and prompting them to adjust audit fees;(3)What is the mechanism of the financialization of entity enterprises on audit fees.This paper uses the data of China's A-share listed companies from 2008 to 2018 as a sample,based on the aforementioned theories and related literature to design hypotheses and models,and conducts empirical tests on the above three issues.The research finds that:(1)The higher the degree of financialization of the entity,the audit The higher the fees;(2)As an external governance mechanism,negative media reports can weaken the positive impact of the financialization of entity enterprises on audit fees;(3)This article further examines the mechanism of the financialization of entity enterprises on audit fees.The intermediary effect of cost,physical asset investment and financing constraints in the process of the financialization of entity enterprises on audit fees is analyzed,and it is verified that the core of the influence of corporate financialization on audit fees is the benefit deviation of the principal-agent relationship.The main contribution of this paper lies in: expanding the scope of research on the economic consequences of entity enterprise financialization,and enriching the related research on the influencing factors of audit fees;at the same time,introducing media attention as a moderating variable,based on the negative moderating effect of negative media reports on entity enterprise financialization and audit fees,this paper provides empirical evidence for the mechanism of external supervision of domestic capital market It also provides new ideas for the development of research in related fields.The main innovation points of this paper are as follows:(1)innovation of research perspective.Based on the principal-agent theory and audit insurance theory,combined with the "crowding out effect" of real enterprise financialization,this paper puts forward the theoretical basis and research hypothesis,systematically studies the impact of entity enterprise financialization on audit fees,enriches the existing research;(2)innovation of adjustment variable selection is based on the previous research On the basis of this,this paper introduces the moderating variable negative media reports,and examines the moderating effect of media attention as an external supervision mechanism on the internal agency problem of enterprises;(3)the mechanism design innovation,in order to comprehensively explore and demonstrate the mechanism of the impact of entity enterprise financialization on audit fees,this paper introduces new intermediary variables to explore the agency cost,physical asset investment and The mediating effect of financing constraints on the positive impact of entity financialization on audit fees.