Impact Of Analyst Behavior On Audit Fees

Audit fees are an important economic link between economic entities.The amount of audit fees will reflect the quality of audits to some extent,while low-quality audits will damage the interests of capital market investors and undermine the fair environment of capital markets.Therefore,ensuring that the audit fees are reasonable and appropriate helps to ensure the healthy development of the capital market and protect the tangible interests of investors.As early as the end of the 20th century,scholars began to study the influencing factors of audit fees,and then scholars continued to expand the factors affecting audit fees.Now the anti-corruption storm of the party and the government has pushed the importance of auditing to a new height.At the same time,it has higher requirements for auditing practitioners.Therefore,the factors of auditing fees will become various stakeholders.The focus of attention.As an important intermediary in the securities market,analysts play an indelible role in the healthy development of the capital market.Analyst behavior has the role of"spotlight" and "magnifying glass",which not only can improve the public's attention,but also analyze the operating status of listed companies according to their own advantages.Given the sequential nature of the behavior,auditors may be affected by analyst behavior when determining audit fees.As far as the current situation is concerned,there is little research on the relationship between analysts and audit fees.Therefore,this paper will use empirical research methods to study the impact of analyst behavior on audit fees.Based on the mechanism of auditor's behavior on audit fees,this paper uses empirical research methods to study the number of analysts tracking by controlling the impact of variables such as asset size and loss status in 2015-2017.The relationship with audit fees;further research on the accuracy of analyst forecasts will make a difference between the impact of analyst tracking and audit fees.At the same time,according to whether the firm is classified as the international four major,the length of time the audited company is listed,the sensitivity of the relationship between analyst follow-up and audit fees is studied.The study found that:(1)analyst tracking has a positive correlation with audit fees,that is,the other analysts pay attention to the other factors remain unchanged,the higher the audit costs.(2)Analysts predicting accurate performance does not enhance the positive correlation between analyst tracking and audit fees.In addition,in order to make the research more perfect,this paper conducts an extended test,and the research finds that:(1)The international "big four" is more sensitive to the role of "analyst tracking will enable auditors to increase audit fees".(2)The long-term listing of the audited entity is more sensitive to the role of "analyst tracking will enable auditors to increase audit fees".Finally,in order to ensure the accuracy of the conclusion,the paper conducts a robustness test.The empirical results of the test are the same as those in the previous paper,which proves the correctness of the research conclusion.