Cheng, Zijian; Liu, Zhangxin; Wang, Isabel Z.; Zhao, Xingju - 2023
We examine the impact of listing via a reverse merger (RM) on audit fees, which can serve as an indicator of a firm’s perceived risk. Using a manually assembled dataset of Chinese companies from 2010-2019, we find that RMs tend to pay higher audit fees than their counterparts who undertake an...