The Study On The Impact Of Board Characteristics Of Listed Corporation On Audit Expense

In recent years, the frequent outbreak of listing Corporation financial fraud, a lot of auditfailure cases, lead to social public investors in listing Corporation confidence serious decline,the interior governance of listing Corporation has become the focus of attention. The perfectcorporate governance and high quality audit services were reduced the listing Corporation’sfinancial fraud risks from internal and external. So the board of directors as the core ofcorporate governance, audit fee as the audit service standards, the existence of whatrelationship between them, has become a widely concerned topic.In this paper, based on reviewing the related literatures, the principal agent theory andresource theory, stewardship theory as the foundation from the audit risk perspective analysisof the board of directors of listing Corporation relationship with audit fees between good, is toreduce the effective board helps the company to audit fees. First, select the Shanghai andShenzhen two city2011-2013A shares of listing Corporation as the research sample data,with the size of the board of directors, chairman and general manager of the number two dutysyncretic or separation, the proportion of the independent directors of the three board ofdirectors structure character as a description of the characteristics of board of directorsvariables, using descriptive statistics, single variable correlation and multiple linear regressionempirical analysis method, study on the listing Corporation board characteristics influence onaudit fees, audit fees and audit fees in the substitution rate of robustness test; the empiricalresults show that board size, proportion of independent directors, chairman and generalmanager of two duty syncretic and audit fees are positively related; therefore, this article fromthe maintain moderate the size of the board of directors, to perfect the audit fee disclosuresystem, a reasonable set of company leadership, strengthen the independence of the board ofdirectors etc. suggestions are proposed.The innovation of this paper lies: first, the characteristics of the board of directors toredefine classification. The characteristics of board of directors includes many aspects,scholars in the study and not the characteristics of the board of directors for detailed classification and definition, often just randomly choose several indexes as variables. In thispaper, the structure characteristics of scale structure, independent structure, leadershipstructure attributed them to the board. And considering the three characteristics of the largeclass of objective, high stability, not change randomly appear in the period of data withinthree years. It will study this kind of characteristic influence on audit fees. Second, alternativeaudit fees test for robustness to the rate of audit fees. Everyone in the related study, thegeneral will audit fees as a substitute variable of audit services, may be affected by asset sizefactors but will feature and relationship in the research director, is not easy to beindependently explain the effects of board characteristics on audit fees. And with the ratio ofaudit fee audit cost alternative robust tests, is conducive to improve the research results ofpersuasion.