IPO Pricing Regulation and Audit Fees: A Perspective from Institutional Changes in China

Abstract

From the perspective of institutional change of IPO regulation, this paper discusses the relationship between IPO pricing regulation and audit fees in China. This paper finds that the audit fees of IPO companies are higher in the stage of pricing regulation in comparison to the stage of pricing marketization. We also find auditors charge higher audit fees for the private companies than state-owned companies during the IPO pricing regulation period. Furthermore in regions with tighten legislation, IPO audit fees are higher in the IPO pricing regulation period.

Keywords

• institutional changes
• ipo pricing regulation
• audit fees
• audit risk
• china