Research On The Influence Of Clan Culture On Audit Fees

In recent years,the state has paid more and more attention to audit fees,and a reasonable level of audit fees plays an important role in improving the development of the market economy.The academic community examines the study of audit fees by clan culture from the aspects of company characteristics,firm characteristics and external environment.As an important informal system,culture is of great significance from the perspective of clan culture to study its impact on audit fees..As an important traditional culture of China,clan culture has been prosperous and endowed with the development of history.The clan culture has profoundly influenced the values and codes of conduct of Chinese people and is of great significance to China’s economic development.When the formal system is not perfect,the clan wenhu plays a certain role as a substitute.The extent to which an enterprise is influenced by the clan culture has a role that cannot be ignored for the company’s operating costs and strategic decisions.It is beneficial to rationally utilize the favorable factors in traditional culture and strengthen the cultural environment construction of auditing and corporate governance.In view of this,this article starts with the clan culture and tries to explore the influence of the clan culture atmosphere of the listed company on the company’s audit fees.In view of the above discussion,this paper adopts the method of geographical proximity and combines theoretical analysis with empirical research to study the influence of clan culture on audit expenses.In the theoretical part of this article,first of all,respectively at home and abroad about the clan culture,audit fees,and financial related literature and research results of the study are reviewed,based on the theory,this paper USES institutional economics related theory,audit pricing theory,risk-oriented audit theory,social capital theory,explains the clan culture ways and mechanism of impact on audit fees.In the empirical part of this paper,through the sample data of Shanghai and Shenzhen a-share listed companies from 2007 to 2018,the author empirically tested the influence of clan culture on audit expenses and investigated the difference of influence of enterprises with different property rights.In order to explore when the formal system is not sound,informal institutions play an important role.This paper further studies the impact of clan culture on the quality of information disclosure and the impact of clan culture on audit costs in different legal environments,that is,the constraint of patriarchy.In this paper,the study found that companies affected by the influence of clan culture strength affect audit fees,the results show that:(1)Clan culture and audit fees significantly negative correlation,the clan culture of trust and moral can reduce transaction cost of enterprises and audit risk,namely the listed company is located the clan culture atmosphere is strong,the lower the company’s audit fees;(2)The property right nature of state-owned enterprises weakens the negative influence of clan culture on auditing expenses;(3)Further research shows that clan culture can improve the quality of information disclosure of enterprises and significantly reduce the audit cost of enterprises in regions with high legal environment.The patriarchal concept has certain restraint function.In order to ensure the accuracy of the study,this paper conducted a study on the endogenous and robustness of the main hypothesis.In the robustness test,the number of ancestral halls within 200 kilometers of the listed company was used to repeat the study of this paper,and the above conclusion was still valid.Finally,the paper summarizes the above research and puts forward some Suggestions.By examining the influence of clan culture on audit fees,on the one hand,this paper expands the research on the factors affecting audit fees.Cultural evidence was found for factors affecting audit costs.On the other hand,this paper enriches the study of “culture and finance”and explains the clan culture.The importance of the development of the enterprise complements the relevant research of the informal system.At the same time,this research provides a new perspective for auditors to conduct risk assessment,and provides a reasonable basis for audit pricing.