Research On The Impact Of Shadow Banking Development On Audit Fees

In recent years,shadow banking has gradually become a "heavyweight player" in the financial system,and its role in supporting the development of my country’s real economy should not be underestimated.However,the chaotic activities of shadow banking,such as " chasing in the same industry,arbitrarily increasing leverage and performing off-balance sheet business," have also brought great challenges to my country’s financial supervision.The report of the 19 th National Congress of the Communist Party of China pointed out that shadow banking risks have become one of the most prominent financial risks.It is necessary to find effective supervision methods to prevent and resolve shadow banking risks.Existing research often proposes control recommendations from the macro policy level,but less attention to the micro perspective of the audit costs with financial supervision.In order to make up for the lack of existing research,this article deeply explores the relationship between shadow banking development and audit fees,and provides more theoretical evidence for monitoring shadow banking from the audit level.Based on this,this article uses the data of China’s non-financial Shanghai and Shenzhen A-share listed companies from 2010 to 2019 as a research sample to empirically test the impact of shadow banking development on audit fees and its internal mechanism and path.Studies have shown that:(1)The development of shadow banking is significantly positively correlated with audit fees.Monetary policy and analyst attention play a significant negative and positive regulatory role between the two;(2)Further research shows that the increase in audit fees brought about by the expansion of shadow banking development is due to the simultaneous increase in audit delays and risk premiums.Moreover,the increase in audit fees of this kind is conducive to improving the quality of audits,and there is no phenomenon of purchasing audit opinions;the risk of corporate debt default plays a part of the intermediary role between the scale of shadow banking development and audit fees;faced with risks at the shadow banking level,auditors will not charge differentiated audit fees due to differences in the nature of property rights.The significance of the research lies in the enrichment of the influencing factors of audit fees and the research of financial innovation on the behavior of micro-auditors,providing empirical evidence for the country to strengthen shadow banking supervision and prevent and control financial risks from an audit perspective.