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Enterprise innovation and audit pricing: An evidence study from China’s A-share listed companies

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  • Li Zhang
  • Wunhong Su
  • Shanqiu Liu

Abstract

Driven by innovation strategy, Chinese enterprises’ innovation investment, and research and development capability have been continuously improved, and the audit risk caused by this has attracted widespread attention from the academic community. This study takes China’s A-share listed companies from 2013 to 2021 as samples to empirically test the relationship between innovation input and audit pricing of Chinese enterprises. Research shows that the higher the innovation investment, the higher the audit cost. High-quality corporate governance, sufficient research and development personnel, research and development subsidies, and operating cash flow can all play a negative moderating role. A good innovation environment will weaken the positive influence between innovation input and audit fees. This study theoretically confirms the risk-oriented audit pricing mechanism, which is of great significance for optimizing enterprise innovation risk management and improving audit service levels.

Suggested Citation

  • Li Zhang & Wunhong Su & Shanqiu Liu, 2024. "Enterprise innovation and audit pricing: An evidence study from China’s A-share listed companies," PLOS ONE, Public Library of Science, vol. 19(3), pages 1-18, March.
    • Handle: RePEc:plo:pone00:0300137
    DOI: 10.1371/journal.pone.0300137
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    References listed on IDEAS

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