Employee quality and audit fee : evidence from China

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

3 Scopus Citations
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Detail(s)

Original languageEnglish
Pages (from-to)4533–4566
Number of pages34
Journal / PublicationAccounting and Finance
Volume60
Issue number5
Online published6 Jul 2020
Publication statusPublished - Dec 2020

Abstract

This study investigates the association between employee quality and audit fee. Using data for firm-level employee quality (as proxied by employee education) from Chinese listed firms from 2011 to 2018, we find that firms operated by high-quality employees enjoy lower audit charges. The association between employee quality and audit fee is more pronounced in firms with a culture of high integrity. Our 2SLS estimation helps us establish a causal link between employee quality and audit fee. The final validity tests suggest that high-quality employees contribute to lower audit fee by reducing audit risk and audit effort.

Research Area(s)

  • Audit effort, Audit fee, Audit risk, Employee quality, Financial reporting quality

Citation Format(s)

Employee quality and audit fee : evidence from China. / Li, Xing; Chen, Xia; Qi, Baolei; Tian, Gaoliang.

In: Accounting and Finance, Vol. 60, No. 5, 12.2020, p. 4533–4566.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review