Author(s)

Shuxin Zheng ¹

Affiliation(s)

¹ School of Business, International Studies University, Xi'an, Shaanxi, 710128, China

Corresponding Author

Shuxin Zheng

ABSTRACT

In the current context of increasingly severe environmental pollution, considering that banks are the main source of funds raised by enterprises, the state has introduced green credit policies for the banking sector to promote the green development of enterprises. There is a lack of existing literature discussing how auditors view the implementation of green credit by commercial banks from the perspective of external supervisors. Based on the specific practice of commercial banks, this paper empirically investigates the impact of commercial banks' green credit on audit fees by manually collecting data related to green credit of China's A-share listed banks from 2008 to 2021. The results show that the implementation of green credit in commercial banks can significantly reduce audit fees. Further analysis shows that green credit mainly reduces audit fees by improving the quality of internal control; increased bankers' confidence attenuates the inhibitory effect of commercial banks' green credit on audit fees, and the inhibitory effect is more effective for state-owned banks.

KEYWORDS

Commercial Banks, Green Credit, Audit Fees, Internal Control Quality, Banker Confidence

CITE THIS PAPER

Shuxin Zheng, Impact of Green Credits from Commercial Banks on Audit Fees. Accounting, Auditing and Finance (2024) Vol. 5: 7-14. DOI: http://dx.doi.org/10.23977/accaf.2024.050102.

REFERENCES

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