Credit Cost,Nature Of Property And Audit Fees

Accompanied by the rapid development of China's capital market,the use of corporate finance has gradually become one of the important boosts for corporate development.The increase in the scale of financing has greatly increased the competitiveness of enterprises,but at the same time,the cost of financing has risen,and the company's business risks have also increased.At present,there are many financing channels for listed companies in China,and credit standards and risk assessment systems are different.Bank loans are the most representative of the major financing channels.And its risk assessment system is the most systematic and authoritative.The higher the bank's debt cost to the company,the higher its operating risk and financial risk.In the face of a new market environment,accounting firms need to pay more attention to the credit costs of companies.Therefore,in terms of theoretical research,the issue of the correlation between corporate credit costs and audit fees also has research value.At present,most domestic and foreign researches discuss the relationship between corporate liabilities and audit fees from the perspective of financial risks.However,the academic community has not formed a definite conclusion as to whether or not the credit cost of a business affects the audit fees and how it affects it.Due to the differences in the political system and the role played by the banking system in the market economy,he is different from his country.The relevant foreign literature does not prove that there is a correlation between corporate credit costs and audit fees.Therefore,this paper hopes to start from the perspective of the auditor's audit risk assessment to study whether there is a correlation between corporate credit costs and audit fees and its internal mechanism.And according to our unique political system,we further study the impact of corporate credit cost of state-owned assets holding companies on audit fees and its internal mechanism.This will be the first time in the relevant research to empirically examine whether the credit cost of a company is an influencing factor for audit fees.This article first uses normative research methods,based on principal-agent theory,financial risk theory,risk premium theory,and the related research on the role of bank governance,taking corporate business risk as an intermediary variable,and discussing the two perspectives of corporate credit cost advantage and disadvantage concept.Impact on audit fees.Subsequently,through the 2012-2016 annual report of A-share listed companies in our country as a sample of data,using the Simunic(1980)model as a reference,an empirical research method was used to further demonstrate the relevance of corporate credit costs,the nature of property rights,and audit fees.The main conclusions of this paper are as follows:First,through empirical tests,we found that corporate credit costs are significantly positively correlated with audit fees.Second,compared with state-owned enterprises,the credit costs of listed companies with private property rights have a more significant impact on audit fees.Thirdly,the examination of mediator variables shows that:As a mediator variable that influences the audit fee,the enterprise operating risk has some mediating effects.Finally,the extended test found that when the size and overall ranking of the accounting firm is high,the audit fees of the firm are more sensitive to the credit cost of the company.Compared with previous research on audit fees,this paper will be the first time to empirically examine whether the credit cost of a company is an influencing factor for audit fees.This will deepen our understanding of the relationship between corporate credit costs,corporate risks,and audit fees;verify whether the bank's risk assessment indicators can provide auditors with a reference for potential audit risks and ultimately affect audit fees and provide accounting firms with the new audit fee reference basis.