The influence of foreign institutional investors on audit fees: evidence from Chinese listed firms
研究外国机构投资者（QFII）对中国上市公司审计费用的影响，发现QFII持股比例越高、数量越多，审计费用越高，且这种效应在治理环境强或地理距离远的QFII中更显著，同时审计努力提升有助于增加企业价值。
This study examines the influence of qualified foreign institutional investors (QFIIs) on investee companies’ audit fees. Using data from China, we find that ownership by QFII-licensed investors is positively associated with audit fees. Besides, audit fees are higher in companies with QFIIs than in those without, and the demand for more extensive audits increases with the number of QFIIs. Notably, the demand for more extensive auditing procedures is mainly attributable to QFIIs from jurisdictions with strong governance institutions or is driven by QFIIs from jurisdictions that are geographically distant from China. Our cross-sectional analysis reveals that this positive influence is more prominent when investee companies exhibit lower earnings quality or a weak sense of corporate social responsibility. Finally, our mediation analysis suggests that QFIIs can enhance firm value and that a portion of this effect is due to the increased audit effort driven by QFIIs.