A study on the impact of the threat of exit from non-controlling shareholders on audit fees
DOI:
https://doi.org/10.54097/6hnyk486Keywords:
The Withdrawal Threat of Non-controlling Major Shareholders, Audit Fees, Surplus Management, Stock Price Crash Risk.Abstract
Taking all A-share listed companies from 2010 to 2021 as a sample, this paper examines the impact of the withdrawal threat of non-controlling shareholders on audit fees. The results demonstrate a considerable reduction in audit fees in the event of an exit threat by a non-controlling shareholder. Further analysis shows that the impact of the withdrawal threat on audit fees is particularly obvious in non-state-owned enterprises and enterprises with a high degree of marketization. Mechanism test reveals that the threat of exit can reduce the risk of stock price crash, inhibit surplus management, and thus reduce audit fees. This paper provides new ideas and empirical support for the role of non-controlling shareholders in corporate governance structure.
Downloads
References
Yu Nutao, Zhang Huayu, Li Wenwen. Who is really threatened by the exit threat of non-controlling major shareholders? --Analysis based on corporate investment efficiency [J]. Journal of Central University of Finance and Economics, 2021, (02): 55 - 72.
WANG Aiqun, LIU Yaona. Exit Threat of Non-controlling Major Shareholders and Corporate Innovation Efficiency [J]. Finance and Economics, 2021, (11): 89 - 101.
YU Nutao, ZHANG Huayu, ZHU Yuxiang. Major Shareholder Heterogeneity, Exit Threat and Financial Reporting Quality-A Natural Experiment Based on China's Financing and Securities Financing System [J]. Accounting Research, 2021, (03): 45 - 61.
Chen, K. J. Exit Threat and Corporate Governance--Based on the Perspective of Surplus Management [J]. Financial Research, 2018, 44 (11): 18 - 32.
Cai Chun, Zhu Lei, Zheng Qianwen, Empress Xiao. Multiple large shareholders and the demand for high-quality auditing [J]. Accounting Research, 2021, (10): 176 - 189.
Chen, K. J. Can the Threat of Exit by Noncontrolling Major Shareholders Reduce Corporate Agency Costs [J]. Nankai Management Review, 2019, 22 (04): 161 - 175.
GUO Bin, WANG Yufeng. A study on the impact of exit threat of non-controlling major shareholders on the risk of stock price collapse [J]. Chongqing Social Science, 2023, (08): 91 - 106.
LI Shihui, LIU Qi, QING Shuijuan. Executive promotion incentives, audit pricing and audit delay [J]. Financial Development Research, 2023, (07): 46 - 55.
WU Peng, YANG Ke, QIAO Zhi, LUO Jingyu, JUNSONG Jiang. Research on the Impact of Corporate ESG Performance on Audit Fees-Empirical Evidence from A-share Listed Companies [J]. Friends of Accounting, 2023, (14): 18 - 27.
Wang S.N., Liu Y. Y. Does the Threat of Exit by a Noncontrolling Majority Shareholder Influence Auditors' Risk Decisions? [J]. Business Economics and Management, 2023, (03): 35 - 49.
FAN Haifeng, GUO Baochun. The impact of exit threat of heterogeneous institutional investors on firms' innovation efficiency [J]. Science and Technology Progress and Countermeasures, 2023, 40 (21): 77 - 87.
Lewis. Non-controlling Major Shareholder Exit Threat and Audit Fees [D]. Jiangxi University of Finance and Economics, 2022.
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
