Executives Foreign Experience And Corporate Auditing Fees

With the deepening of economic globalization,study and work abroad have become more and more common.In recent years,in order to alleviate the problem of brain drain,China's local governments have issued a series of policies to attract overseas talents to return to the country for employment and entrepreneurship in terms of settlement,tax incentives,and capital matching.Coupled with the rapid development of the domestic economy in recent years,the economic structure is facing transformation,which provides opportunities for overseas talents to return to China for development.Some overseas talents enter the company's management and play an important role in all corporate decisions.Overseas social culture will change the values and thinking styles of these "returned elites",which will affect their behavior.When they are executives of domestic listed companies,the impact of this experience will be reflected in the company's operations.Existing literature explores the impact of overseas background of senior executives on companies from the perspectives of business performance,technological innovation,investment efficiency,and corporate social responsibility.However,whether returnee executives have a wider impact on audit costs and even the company 's overall operations.Therefore,based on the background of overseas returnees of senior executives,this paper makes an empirical study of A-share listed companies except for the financial and insurance industry in 2008-2017.The results show that:(1)the overseas background of senior executives will indeed increase the audit fees of their companies;(2)one of the ways that the overseas background of senior executives has an impact on the audit fees of companies is to promote the international operation level of enterprises;(3)Institutional investors' shareholding ratio and ownership concentration can adjust the relationship between audit fees and executives' overseas background.This paper studies how the overseas background of senior executives affects the audit cost of the company by analyzing the level of risk-taking and the international operation of the company.In terms of theory,it enriches the relevant research in the field of senior management background,which has certain guiding value for the enterprises in practice.It provides theoretical support for enterprises to optimize the allocation of senior management team,so as to avoid excessive radical decision-making by overseas returnees while they can continue to create value for the company and reduce the negative impact.