Economic Policy Uncertainty,Shadow Banking Of Non-Financial Enterprises And Audit Fee

In 2001,China Securities Regulatory Commission issued a series of documents,requiring Chinese listed companies to publicly disclose audit fees in financial reports.Since then,the academic circle began to carry out relevant research on audit fees,and the research system of audit fees has become increasingly rich.Audit fees are the economic link between the supply and demand of audit.On the one hand,audit fees can ensure that the audites get audit services.On the other hand,audit fees can also compensate accounting firms for the costs in the audit process,so it is of certain practical significance to carry out research on audit fees.Auditing is a sophisticated and professional service,and different auditors will consider many different factors when making pricing decisions.Among the many factors affecting audit fees,the influence of economic policy uncertainty,as a policy environment factor,on audit fees cannot be ignored.In the context of the economy "turning from real to virtual",the shadow banking of non-financial enterprises will also affect auditors’ audit pricing decisions.Therefore,economic policy uncertainty,shadow banking of non-financial enterprises and audit fees are included in the same research framework in this paper,and the relationship between the three is discussed,which enricfies relevant theoretical research and has certain theoretical significance.Based on the analysis of relevant theories,this paper proposes the research hypothesis by studying and analyzing the relevant research achievements of domestic and foreign scholars,selects relevant research variables,builds theoretical research models,organizes 32703 sample data with Excel,and uses Stata MP 16.0 to conduct statistical test and regression analysis of sample data.Finally,the regression results were tested by replacing variables,adjusting sample period and endogeneity test,and further analysis was carried out.Finally,the research conclusion was drawn and countermeasures were proposed.This paper draws the following conclusions:(1)Economic policy uncertainty will lead to the increase of audit costs;(2)Economic policy uncertainty will lead to the intensification of shadow banking of non-financial enterprises;(3)The intermediation effect of shadow banking of non-financial enterprises is significant;(4)In the further analysis,the research objects are divided according to the property rights nature and the shareholding ratio of institutional investors,and it is found that the positive impact of economic policy uncertainty on audit expenses is more significant in non-state-owned enterprises and enterprises with low shareholding ratio of institutional investors.According to the research conclusions,this paper puts forward countermeasures and suggestions from the perspectives of government,enterprise and auditor respectively.First,policy makers should promote the stability and scientific nature of policy making;Second,enterprises should improve the ability to identify risks and regulate financial investment behavior.Third,auditors should play the role of external supervision,adhere to risk-oriented audit,improve audit quality.