The Researches on Relationship between Corporate Governance and Audit Fees in China Capital Market

This paper tested relationship between corporate governance and audit fees in China Capital Market based on data mining technology. Using 232 observations by the end of 2009, the paper designed special applied regression of data mining to investigate the question. Final conclusions of data mining show that audit fees are positively relative to proportion of controlling stockholder and are negatively relative to proportion of institution investors, proportion of management and proportion of independent directors, respectively. This shows that corporate governance can play an important role in the decision of audit fees for auditors.