Assets Mispricing And Abnormal Audit Fees

As the key link of market test information,the research on audit independence and audit pricing has become increasingly rich.Among them,the research on abnormal audit fees is carried out from the aspects of audit cost and economic rent,but there is no literature on abnormal audit fees from the perspective of capital market,especially the pricing efficiency of capital market.As the representative of capital market imbalance,the economic impact caused by asset mispricing is bound to cause the uncertainty of the company's external environment.In China's capital market,the agency problem caused by asset pricing failure is more prominent.Third party firms may adjust their audit pricing decisions based on their own audit costs and customers' audit opinions.Especially in the economic background of financial deleveraging and strict supervision,how to price the firm has attracted wide attention of academia and industry.In view of this,this paper intends to conduct in-depth and systematic research on abnormal audit fees in combination with asset mispricing in China.Based on the above background,this paper takes 2007-2018 China A-share non-financial insurance listed companies as the research sample,deeply explores the relationship between asset mispricing and abnormal audit fees,and attempts to reveal the mystery of "the mystery of abnormal audit fees".It is found that:(1)there is a significant positive correlation between asset mispricing and abnormal audit fees.In the intermediary effect test,it is identified that the specific source of the increase of abnormal audit fees caused by asset mispricing is economic rent,that is,asset mispricing not only does not cause the auditor to increase the audit input,but also causes the audit to be determined by the way of economic rent damaging the audit independence The price deviates from the normal range;(2)in the study of the economic consequences of abnormal audit fees,this paper finds that the behavior of asset mispricing,which leads to the increase of abnormal audit fees through the generation of economic rents,ultimately reduces the audit quality;(3)in further analysis,the relationship between asset mispricing and abnormal audit fees is significantly different in the internal and external governance environment.This paper makes in-depth analysis and exploration In the samples of poor legal environment,few analysts tracking,low media attention,poor internal control level,high management shareholding and non-state-owned enterprises,asset mispricing has a stronger impact on abnormal audit fees.The possible theoretical contributions and practical significance of this paper are as follows:(1)the research on abnormal audit fees at home and abroad has become more and more perfect.Based on the research on the theory of abnormal audit fees,this paper explores its possible influence on abnormal audit fees in China from the perspective of asset mispricing,which not only reveals the motivation and causes of audit fees of Listed Companies in China,but also enriches the research on abnormal audit fees The existing research on asset mispricing has been improved.(2)The existing literature seldom put the theory of "audit cost" and the theory of "economic rent" under the same framework when exploring the related problems of the influencing factors of abnormal audit fees.Based on the perspective of asset mispricing,this paper discusses the theory of "audit cost" and "economic rent" of abnormal audit fees respectively to clarify the relationship between asset mispricing and audit decision-making It is helpful to understand the information intermediary role of auditors from the perspective of asset mispricing,and to provide reference for establishing a standardized external audit market.In addition,as an important signal to transmit audit quality,abnormal audit cost provides empirical evidence for whether abnormal audit cost will damage audit quality in the securities audit market.