Equity Incentive, Internal Control and Audit Pricing― Empirical Evidence from China

Jun-rong ZHU, Guang-ming WANG


Based on the A-share companies from 2012 to 2015, this paper investigated the relationship between internal control and audit pricing from the perspective of equity incentive. The study reveals that internal control has a significant negative impact on audit pricing. Specifically, the better the quality of internal control, the lower the level of audit pricing. Further study finds that the implementation of equity incentive strengthens the governance effect of internal control on audit pricing.


Equity incentive, Internal control, Audit pricing


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