Business environment is a key external factor on the development of firms,but the impact on firms'auditing fees stays uncertain.Research results indicates that business environment can be im-proved through promoting the elaboration on legal system and financial market as well as lowering the bar of entering markets.In this way,corporates'demand on high-quality service grows,thus the auditing fees.Thus,there is a positive correlation between optimizing business environment and auditing fees.Further studies show that the incremental in auditing fees caused by business environment improvement can be more significant in firms which are SOEs,with higher agency costs,closely tracked and followed by ana-lysts and network media.The research implicates,when making policies,other entities in financial market should also be considered besides direct influence of policies on companies.
Business environmentAuditing feesAuditing service demandMarket entrance
NETL
NSTL
万方数据
维普
