An Empirical Study On The Relationship Between Corporate Governance Structure And Audit Fees For Family Holding Listed Companies

The scholars studying family holding listed companies are very few,also some researchers used the data of 2001,which is obsolete,and samples are small and not convincing.At the same time,previous relevant studies mostly focused on financial data,such as assets size,asset-liability ratio,rate of return on common stockholders' equity,inventory and accounts receivable to total assets ratio and so on,ignoring the deeper factors—corporate internal governance.761 Family holding listed companies which revealed their annual audit fees from 2005 to 2007 are selected as the samples,this article studies the relationship between the corporate governance structure of family holding listed companies and audit fees, using regression analysis and setting up the audit fee model.We found,DSHQM affects the audit fees positively and significantly under the level of 0.01 which presents that diligent board will seek for high level of supervision,higher supervision supports higher quality of auditing,PAY affects the audit fees positively and significantly under the level of 0.05 which presents high pay can provide directors and executives with more power to promote the profit level,in order to acquire more beneficial safeguard,they will pursuit higher-quality auditing,and then,IFAC affects the audit fees negatively and significantly under the level of 0.1 which presents establishment of audit committee can strengthen the internal control,so auditors can lower auditing cost which brings lower auditing fees.At the end of the article,it points out the drawbacks in the study and provides some suggestions for improving the corporate governance structure of Chinese family holding listed companies and normalizing the market of audit charging.