The Research On The Effect Of Equity Incentive To Aduit Fee

Equity incentive as a kind of long-term compensation contract mechanism,is considered to be the efficient way that can relieve the contradictions of principal-agent,by giving managers the enterprise shares to make that the owners and managers of the enterprise share profits and risks,promote management efforts for company management,improve business performance,promote the development of enterprises.In 2006,China securities regulatory commission promulgated the trial measures of equity incentive,which provided the requirements and basis for China's listed companies to implement equity incentive.On August 13,2016,the "measures on equity incentive management of listed companies" was officially promulgated and implemented.After ten years of equity incentive practice,China's equity incentive system has been constantly improved and developed.By 2016,the number of listed companies that have implemented equity incentive has reached 676.However,in recent years,financial fraud and accounting scandals caused by equity incentive have emerged in numerous countries,and the impact of equity incentive on the quality of financial statements has been paid attention by certified public accountants.So,under the special institutional environment of China,does equity incentive affect the quality of financial reports of enterprises and thus the audit fees of certified public accountants?This paper selects a-share listed companies in Shanghai and shenzhen stock exchange from 2012 to 2016 as research objects,and studies the influence direction and path of equity incentive of listed companies on audit cost.Firstly,by reading relevant literatures and classifying and summarizing,it has found that equity incentive may affect the direction and path of audit cost.Secondly,on the basis of relevant theories,the author analyzes the transmission mechanism of the influence of the equity incentive on the audit fee,and combined with our special property right environment to put forward the hypothesis of this article.The regression model was established again,data samples were collected and sorted out for empirical regression analysis,and the reliability of the conclusion was verified through further path exploration.The study found that when other conditions were certain,the implementation of equity incentive plans of listed companies than the implementation of equity incentive plans of the audit fees of listed companies is more low,with the increase of equity incentive intensity,can significantly reduce the audit cost,and in the equity incentive in state-owned enterprises of low audit fees is more significant;And to further the introduction of internal control quality and earnings management of equity incentive to explore the influence of audit fees path,found the quality of internal control and negative earnings management in the equity incentive and partial mediation between audit fees.Finally,based on the conclusions of this paper,the author puts forward some suggestions.