Audit Fee Determinants for Mainland Chinese Companies Listed on Hong Kong Stock Exchange

Research in audit service market has grown significantly since the first study published in 1980. The surge of Mainland Chinese companies listing on Hong Kong Stock Exchange and the different characteristics associated with Chinese domestic and Hong Kong audit markets have inspired this work to dete...

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Main Author: Lou, Jie
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2008
Subjects:
Online Access:https://eprints.nottingham.ac.uk/21917/
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author Lou, Jie
author_facet Lou, Jie
author_sort Lou, Jie
building Nottingham Research Data Repository
collection Online Access
description Research in audit service market has grown significantly since the first study published in 1980. The surge of Mainland Chinese companies listing on Hong Kong Stock Exchange and the different characteristics associated with Chinese domestic and Hong Kong audit markets have inspired this work to determine the audit service pricing models of these companies. In addition to traditional determinants, two tailored explanatory variables were included. Regression analysis was the main methodology in order to identify significant variables of six types of shares. The results of regression strongly supported previous studies on the importance of auditee size in the course of pricing audit services by giving that log total assets was significant across all groups. Number of stock exchanges listed, which was one of the new variables, was found to be significant in three groups. More importantly, it proved that not only the number of stock exchanges but also the location of second listed market had an impact on audit fees charged. Surprising, neither of the balance sheet based ratios, which were proxies of auditee complexity, was successful in explaining audit fees in any group and only non-financial measures of complexity was found to be significant in a couple groups.
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spelling nottingham-219172018-01-31T02:46:30Z https://eprints.nottingham.ac.uk/21917/ Audit Fee Determinants for Mainland Chinese Companies Listed on Hong Kong Stock Exchange Lou, Jie Research in audit service market has grown significantly since the first study published in 1980. The surge of Mainland Chinese companies listing on Hong Kong Stock Exchange and the different characteristics associated with Chinese domestic and Hong Kong audit markets have inspired this work to determine the audit service pricing models of these companies. In addition to traditional determinants, two tailored explanatory variables were included. Regression analysis was the main methodology in order to identify significant variables of six types of shares. The results of regression strongly supported previous studies on the importance of auditee size in the course of pricing audit services by giving that log total assets was significant across all groups. Number of stock exchanges listed, which was one of the new variables, was found to be significant in three groups. More importantly, it proved that not only the number of stock exchanges but also the location of second listed market had an impact on audit fees charged. Surprising, neither of the balance sheet based ratios, which were proxies of auditee complexity, was successful in explaining audit fees in any group and only non-financial measures of complexity was found to be significant in a couple groups. 2008 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/21917/1/08MAJESSICA22Lou.pdf Lou, Jie (2008) Audit Fee Determinants for Mainland Chinese Companies Listed on Hong Kong Stock Exchange. [Dissertation (University of Nottingham only)] (Unpublished) HKSE Audit Fee Determinants Mainland Chinese
spellingShingle HKSE
Audit Fee Determinants
Mainland Chinese
Lou, Jie
Audit Fee Determinants for Mainland Chinese Companies Listed on Hong Kong Stock Exchange
title Audit Fee Determinants for Mainland Chinese Companies Listed on Hong Kong Stock Exchange
title_full Audit Fee Determinants for Mainland Chinese Companies Listed on Hong Kong Stock Exchange
title_fullStr Audit Fee Determinants for Mainland Chinese Companies Listed on Hong Kong Stock Exchange
title_full_unstemmed Audit Fee Determinants for Mainland Chinese Companies Listed on Hong Kong Stock Exchange
title_short Audit Fee Determinants for Mainland Chinese Companies Listed on Hong Kong Stock Exchange
title_sort audit fee determinants for mainland chinese companies listed on hong kong stock exchange
topic HKSE
Audit Fee Determinants
Mainland Chinese
url https://eprints.nottingham.ac.uk/21917/