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Auditor fees and connected transactions

Author

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  • Xu, Wenjian
  • Zhang, Pan

Abstract

This study examines the relationship between auditor fees and related-party transactions among China’s non-financial listed firms. Results show that more frequent related transactions are associated with higher auditor fees, even after robustness checks. Mechanism tests suggest that related transactions increase information asymmetry, worsening the corporate information environment and raising audit costs. This effect is more pronounced in firms with weaker internal controls.

Suggested Citation

  • Xu, Wenjian & Zhang, Pan, 2025. "Auditor fees and connected transactions," Finance Research Letters, Elsevier, vol. 85(PD).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pd:s1544612325013492
    DOI: 10.1016/j.frl.2025.108092
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    References listed on IDEAS

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