The Empirical Study On The Relationship Between Managerial Overconfidence And Audit Fees

Audit,as a kind of paid service provided by accounting firms,objectively and fairly reflects the financial situation and operating results of the company,and the audit opinion of financial reports is an important reference for users of relevant information.The traditional economics has been based on the premise of rational broker to study audit fees.However,behavioral economics,which has arisen in recent years,draws lessons from the research results of psychology and behavior,and holds that there is limited rationality in the decision-making of managers.Empirical studies by domestic and foreign scholars also confirm the existence of overconfidence in the management of listed companies.Then,whether the managers' psychological deviation will affect the audit fees of the company,and how to reflect it under different objective conditions,this is the focus of this paper.From the point of view of economics,combined with the research results of domestic and foreign scholars on the problem of overconfidence of managers,this paper first analyzes the background and research methods of the selected topics,determines the focus of this study,based on the theories of corporate behavioral economics and limited rationality,the hypothesis of this paper is put forward,follow the basic thinking of posing questions-theoretical analysis-empirical analysis,by regression analysis,the relationship between overconfidence of managers and audit fees of listed companies in China is studied directly.At the same time,combined with the ownership nature of listed companies and institutional investor supervision factors,this paper makes a detailed study,and further discusses the impact of different property rights and external regulatory intensity on this relationship.In this paper,a multivariate linear regression model is constructed by combing the related literature on manager overconfidence,audit fees and so on.In the empirical analysis,the financial data and stock trading data of Shanghai and Shenzhen A-share listed companies from 2014-2016 were selected as the research objects,and 5964 effective observations were obtained after preliminary screening.Through descriptive statistics,correlation coefficient analysis,regression analysis and other methods to test whether the expected hypothesis is established.The results show that overconfidence of managers will increase audit fees,and the positive effect of overconfidence on audit fees of state-owned listed companies is less than that of non-state-owned listed companies,when institutional investors' supervision of listed companies is weak,thepositive impact of overconfidence of managers on audit fees will be greater.Finally,on the basis of the empirical results,this paper puts forward some targeted suggestions from three aspects: the personal characteristics of managers,the external development environment of the company and the regulatory agencies.It provides a new perspective and train of thought for the study of managers' personal characteristics and audit influencing factors,and also provides theoretical support and experience for listed companies to improve internal governance and reduce operating costs.