| Nowadays,our country has entered an important stage of high-quality development,which means that the focus of promoting economic development must be implemented with a high quality.As a key subject of economic development,enterprises are faced with such problems as information asymmetry caused by the separation of ownership and management and the conflict between the principal and the agent,and are prone to adverse selection of management and moral hazard.These problems increase the risk of business operation and material misstatement,which is not conducive to the long-term healthy development of enterprises and society.Moreover,the situation of Chinese entities enterprises is more difficult,and the adoption of radical strategies is more serious.Strategy is the criterion to guide the business activities of enterprises.Enterprises implementing radical strategies are usually faced with greater risks such as operation and debt default,which will also increase the motivation of the management to carry out financial earnings management,increase the risk of material misstatement in financial statements and audit risks,and increase the resource input and risk level of auditors in the audit process.It affects the audit fees that auditors collect from the auditees.Therefore,based on the study of the influence of strategic radicalism on audit fees,this paper discusses the mediating role of financialization degree and business risk in the relationship between strategic radicalism and audit fees,and the moderating role of media attention,ownership concentration and financing constraints in the relationship between strategic radicalism and audit fees.This paper takes A-share listed firms from 2007 to 2021 as the research samples for regression analysis.Through empirical research,it is found that:(1)the benchmark regression results show that there is A significant positive correlation between corporate strategic radicalism and audit costs;(2)Through the intermediary test,it is found that the degree of corporate financialization and operational risk are the mediating paths of the influence of strategic radicalism on audit fees;(3)Through the governance test,it is found that media attention inhibits strategic radicalism and audit costs,while financing constraints and ownership concentration promote strategic radicalism and audit costs.That is,the higher the concentration of internal ownership,the greater the financing constraints and the lower the media attention,the more the enterprise is exposed to.The positive correlation between enterprise strategic radicalism and audit cost is more significant.Finally,in order to alleviate the influence of endogenous problems and improve the stability of research conclusions,this paper respectively uses replacement proxy variables,change regression model and two-stage least square method to verify the benchmark regression results.The research conclusions remain unchanged,further proving the stability of the research conclusions.This paper analyzes the relationship between the degree of strategic radicalism and audit cost from the two directions of action path and governance mechanism respectively.From the perspective of enterprise asset allocation,this paper explores the influence of strategic radicalism on the degree of financialization of enterprises,thus affecting the level of risk assessment of enterprises,and ultimately affecting the audit cost.From the perspective of internal and external heterogeneity,media attention,equity concentration and financing constraint variables are introduced to study the moderating effect of heterogeneity of these variables on strategic radicalism and audit costs.It is helpful to understand the concrete mechanism and governance mechanism of audit cost influenced by strategic radicalism.It provides a new perspective to improve the rationality of audit cost,and also provides theoretical support for the authority to formulate related policies.It is beneficial to the stability of our capital market. |
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