Impact of managerial overconfidence on abnormal audit fee: From the perspective of balance mechanism of shareholders
Overconfidence, as a psychological feature that is difficult to measure, means that managers are overconfident in their management ability, investment judgment ability and knowledge richness, thus overestimating their ability and making irrational behavior. Based on the sample of Chinese listed firm...
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Published in | PloS one Vol. 15; no. 9; p. e0238450 |
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Main Authors | , , , , |
Format | Journal Article |
Language | English |
Published |
San Francisco
Public Library of Science
10.09.2020
Public Library of Science (PLoS) |
Subjects | |
Online Access | Get full text |
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Summary: | Overconfidence, as a psychological feature that is difficult to measure, means that managers are overconfident in their management ability, investment judgment ability and knowledge richness, thus overestimating their ability and making irrational behavior. Based on the sample of Chinese listed firms from 2014 to 2018, we measure managerial overconfidence in terms of age, gender, education, position and salary, and analyzed the relationship between overconfidence, abnormal audit fees, and the balance mechanism of shareholders. The research results show that there is a significant positive correlation between managerial overconfidence and abnormal audit fees, and the balance mechanism of shareholders can significantly inhibit the positive correlation between managerial overconfidence and abnormal audit fees. The research results of this paper are conducive to the supervision department to further improve the relevant supervision measures, improve the audit quality, and provide theoretical support for the more specific requirements of audit fee information disclosure. |
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Bibliography: | ObjectType-Article-1 SourceType-Scholarly Journals-1 ObjectType-Feature-2 content type line 23 Competing Interests: The authors have declared that no competing interests exist. These authors also contributed equally to this work. |
ISSN: | 1932-6203 1932-6203 |
DOI: | 10.1371/journal.pone.0238450 |