Digital Transformation and Audit Fees:Negative Energy or Empowerment?
This study aims to investigate whether auditors'pricing decisions vary with the level of digitalization in traditional enterprises.Using the data from Chinese A-share listed companies in traditional industries,this study finds an inverted U-shaped effect of digital transformation on audit fees,indicating a nonlinear relationship that shifts from negative energy to empowerment as the levels of digitalization increase.The inverted U-shaped curve re-lationship between digital transformation and audit fees is more pronounced in diversified firms and is weaker in firms audited by audit firms with higher digital auditing competence.Mechanism tests demonstrate that digital transformation can impact internal control risks and auditor efforts in an inverted U-shaped manner,providing important insights into the nonlinear changes in audit fees caused by digitization.Finally,this study finds that digital transfor-mation similarly exhibits an inverted U-shaped nonlinear effect on auditor changes,providing further empirical evidence for the negative energy and em-powerment effects of digital transformation.
Digital TransformationAudit FeesDigital Negative EnergyDigital Empowerment
万方数据
维普
