How Corporate Governance Influences Independent Audit Fees

Andersen firm’s abnormal audit fees drawn the attention to the audit independence and audit fees. Independent audit as an important external supervision mechanism, it’s significance is not only can expose the errors and fraud of economic business, but also can be further investigated for the responsibility of head. So the research on the quality of independent audit fees and has been widely theoretical scholar’s attention. Audit fee is directly related to the discretion of the audit quality, at the same time, influenced by various factors, the effectiveness of corporate governance is also one of the important aspects. In this paper, based on the perspective of the auditor, we study the effects of corporate governance characteristics on audit fees.In this paper, with A share capital market empirical evidence from 2008 to 2011 we study the correlation of corporate governance and independent audit fees. The study found that:first, board independence, diligence and positively related to the audit fees; Professionalism is negatively related to the audit fees; Secondly; Chairman and general manager of the joining together of two position, top management shareholding has negative influence on audit fee; Third, there is no significant influence between diligence of the board of supervisors and audit fees. Otherwise company ownership structure, ownership concentration and equity balance degree, etc. are also key factors to influence audit pricing factors. Both has strong influence on fees.Research results of the article is based on four years a-share listed companies of large sample data regression analysis, and using the data of 2008-2012 the robustness test, the results are significantly better. In view of the existing literature on the board of directors diligent degree of relationship between audit fees of the present situation of the research is relatively scarce, the article will add board industry degree as the board characteristics into the research. This article’s results are not only aim to enrich the related academic literature, but also to enrich our country corporate governance theory and audit fees of pricing method.