Research On The Impact Of Enterprise Risk Bearing On Audit Fees

Technological innovation is inevitably accompanied by capital investment and increased risk,thereby affecting enterprise risk bearing.Proper enterprise risk taking can promote investment innovation,help enterprises optimize resource allocation,and improve production efficiency.However,excessive enterprise risk taking can lead to higher asset liability ratios and increase financial risks for enterprises.Therefore,enterprise risk taking has a significant impact on the economic activities of enterprises.Currently,academic research on the economic consequences of corporate risk taking mainly focuses on the factors of the enterprise itself,such as investment efficiency,debt cost,company performance,and company value,while less research has been conducted on the impact of corporate risk taking on external stakeholders.As external stakeholders and the executor of corporate assurance services,audit institutions’ risk taking inevitably affects the execution strategies of auditors,which in turn affects audit input.Based on this,this article selects A-share listed companies from 2012 to 2020 as a research sample,and attempts to analyze the impact of corporate risk taking on corporate audit costs from the perspective of audit institutions,a stakeholder.This article establishes a multiple regression model to test the impact of corporate risk taking on audit fees and uses instrumental variable method,lag one independent variable test,Tobit test,and alternative explanatory variable measurement methods to conduct regression again to ensure the robustness of the benchmark regression results.On the basis of the above research,this article also adds financing constraints as intermediary variables,and internal control and integration of two functions as moderators to analyze the impact mechanism of enterprise risk bearing on audit fees.This article draws the following four conclusions through empirical research:(1)Under the same circumstances,the higher the level of enterprise risk taking,the higher the audit fee;(2)When the enterprise’s risk bearing level is high,it will increase the financing constraints of the enterprise,increase the audit risk of the enterprise,and thus increase the audit cost;(3)Compared with low quality internal control,higher internal control quality of the audited entity will alleviate the increase in audit fees caused by the level of enterprise risk bearing;(4)The integration of the chairman and general manager of an enterprise will exacerbate the impact of enterprise risk bearing on audit fees.That is,under the same other conditions,the level of enterprise risk bearing in an enterprise with two combined positions has a greater impact on audit fees than in an enterprise with two separate positions.It is hoped that the research in this article can provide reference for enterprise managers’ investment decisions and the implementation of audit strategies by audit institutions.