8卷 第4期
College of Economics and Management, Southeast University, Jiangsu 214135, China
纸质出版日期： 2024-08-30 ，
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(2024). Charge for Risk: Minority Shareholders' Activism and Audit Pricing. 创意经济（英文版）, 8(4), 5-27.
Bian Qiurui.Charge for Risk: Minority Shareholders' Activism and Audit Pricing[J].Creative Economy,2024,08(04):5-27.
(2024). Charge for Risk: Minority Shareholders' Activism and Audit Pricing. 创意经济（英文版）, 8(4), 5-27. DOI： 10.47297/wspceWSP2516-251901.20240804.
Bian Qiurui.Charge for Risk: Minority Shareholders' Activism and Audit Pricing[J].Creative Economy,2024,08(04):5-27. DOI： 10.47297/wspceWSP2516-251901.20240804.
This study examines how minority shareholders' activism influences audit fees in Chinese listed companies. Utilizing a distinct dataset that focuses on the attendance of minority shareholders at annual general meetings (AGMs)
we observe that auditors charge higher fees for firms with active minority shareholders. The findings remain robust through instrumental variable tests
propensity score matching
and various measures of minority shareholders' activism and audit fees. Further analyses indicate that in firms with fewer key audit matters
fewer tracking analysts
and poorer control quality
minority shareholders' active participation more significantly impacts audit fees. We identify two potential channels: media attention and earnings management
which increase audit risk and thus audit fees. Overall
our findings illuminate the unintended consequences of minority shareholders' activism that may not be entirely foreseen from an external auditing perspective.
Minority shareholders' activismAudit feesMediaEarnings management
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