Chief Executive Officer Characteristics, Internal Control Quality and Audit Fees

DOI: https://doi.org/10.62517/jel.202414104

Author(s)

Xin Xie, Xiaoying Wu*

Affiliation(s)

School of Accounting, Guangzhou College of Commerce, Guangzhou, Guangdong, China *Corresponding Author.

Abstract

As an important position among corporate executives, CEO is mainly responsible for the daily business activities and has a profound impact on the development of enterprises. We investigate the relationship between CEO characteristics and audit fees in China. We use the data of 2,873 listed companies from 2012 to 2022 to construct a multiple regression model. We found it is a significant positive relationship between CEO's academic level and overseas background and audit fees, and internal control quality positively moderates the relationship between CEO's academic level and overseas background and audit fees. However, the mediating effect of internal control quality on CEO's professional and academic background is not obvious. Our research not only enriches the theoretical frameworks of both internal control quality and audit fees, but also extends research perspectives on CEO characteristics, enabling optimization of corporate governance structures and hiring mechanisms.

Keywords

CEO; Personal Characteristics; Internal Control Quality; Audit Fees; Corporate Governance

References

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