Research on the Mechanism of Blockchain Technology Investment's Impact on Audit Fees: -- Based on the Analysis of China's A-share Listed Companies

Shubo Zhang; Chunqiang Zhang; Pengyu Lu

doi:10.54691/fhss.v2i5.725

Authors

Shubo Zhang
Chunqiang Zhang
Pengyu Lu

DOI:

https://doi.org/10.54691/fhss.v2i5.725

Keywords:

Blockchain; Audit Expenses; Digital Economy.

Abstract

This paper selects the financial data of China's A-share listed companies from 2016 to 2020, and analyzes the impact of blockchain technology investment on company audit expenses. The results show that there is a significant positive correlation between the blockchain technology investment and the company's audit expenses, that is, the more the company invests in blockchain technology, the higher the audit expenses will be. This is because the application of blockchain technology in listed companies will make auditors face higher risk of significant misstatement and audit risks, and then increase the related audit procedures, thus increasing the audit expenses. Conclusion The above results are still valid after robustness test and endogenous treatment. In this paper, the research on blockchain technology investment from the perspective of audit fees will help the theoretical circle to fully understand the potential effects of blockchain technology investment on social and economic development.

Downloads

Download data is not yet available.

References

Woo, D. (2014), “Bitcoin: a first assessment, FX and rates research report from Merrill Lynch”,available at: http.//www.w-t-w.org.

Wang, J. and Zhang, H. (2019), “Product market competition and corporate investment efficiency: a quasi-natural experiment”, Financial Research, Vol. 10, pp. 125-137.

Wang Zhenlin. The impact of government regulation on the demand and supply of audit services: evidence from the Chinese securities market [J]. China CPA, 2002, (03):26-30.

Han Houjun, Zhou Shengchun. Research on the compensation of accountants in China's securities market--an analysis of empirical data of listed companies[J]. Management World, 2003, (02):15-22.

Chia Jiangna, Chen Huilin, Zhang, Yang. Firm size - brand - price and audit quality: A study of fees and quality in the international "Big Four" audit market in China[J]. Audit Research, 2004, (03):59-65.

Li Shuang, Wu Xi. Characteristics and implications of the first disclosure of information on audit and related service fees in the Chinese securities market [J]. China CPA, 2004, (02):50-57+2.

Yang Deming Liu Yongwen 2018. " Why the Internet +" adds up to performance [J]. China Industrial Economy (5): 80-98.