TITLE:
Competitive Position of Enterprises, Corporate Growth and Audit Fees: Based on Empirical Evidence from Chinese A-Share Listed Companies
AUTHORS:
Sifan Wang
KEYWORDS:
Competitive Position of Enterprises, Corporate Growth, Audit Fees
JOURNAL NAME:
Modern Economy,
Vol.11 No.2,
February
21,
2020
ABSTRACT: The competitive position of an enterprise usually
changes dynamically with the continuous growth and development of the
enterprise. In this process, the business risks of the enterprise also change.
According to the audit demand insurance theory, companies often use auditing to
avoid and reduce risks, and auditors usually consider the corresponding risk
premium in order to protect their own interests. This article uses the
non-financial companies in China’s A-share market from 2011 to 2016 as a sample
to study the impact of enterprises’ competitive position and growth on its
audit fees. The research results show that: the competitive position of the
company has a negative impact on audit fees; the growth of the company has a
positive impact on audit fees; Further research shows that the impact of
enterprises’ competitive position on audit fees is no longer significant in
high-growth companies and still significant in low-growth companies, so
corporate growth has a weakening effect on this relationship. This research
enriches the content of the research on influencing factors of audit fees, and
also has certain significance for the audit fees of accounting firms in
practice.