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The U-shape relationship between corporate social responsibility decoupling and audit fees

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  • Li, Zhongze
  • Wu, Yuchen
  • Zhang, Yi

Abstract

This study of Chinese listed firms uncovers a U-shaped relationship between CSR decoupling and audit fees. These findings are robust with an alternative measure and an instrumental variable. The relationship is more pronounced in firms with higher operational risk and information asymmetry. As such, this study reconciles conflicting literature on the economic consequences of CSR decoupling and contributes to the research on audit fees.

Suggested Citation

  • Li, Zhongze & Wu, Yuchen & Zhang, Yi, 2024. "The U-shape relationship between corporate social responsibility decoupling and audit fees," Finance Research Letters, Elsevier, vol. 67(PB).
    • Handle: RePEc:eee:finlet:v:67:y:2024:i:pb:s1544612324009711
    DOI: 10.1016/j.frl.2024.105941
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    References listed on IDEAS

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    Keywords

    CSR; CSR decoupling; Audit fees;
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