Legal Awareness Level of the Board of Directors and Audit Fees
Abstract
This paper takes all the listed companies in the Shanghai Stock Exchange of the A-shares that have disclosed annual reports and board reports from 2005 to 2020 as a sample, and selects control variables from the three levels of corporate financial characteristics, corporate governance and audit firms to study the impact of the board of directors' legal awareness level upon audit fees. The results show that there is a significant positive correlation between the legal awareness level of the board of directors and the audit fees, and the higher legal awareness level the board of directors own, the higher audit fees they might pay for. The finding provides a new interpretation of the factors influencing audit fees, a higher audit fee may be the board's voluntary choice.
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DOI: https://doi.org/10.18686/aat.v4i2.1537
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