The Formation of Audit Committee and Corporate Governance——Empirical Research Based on Audit Fee

Appling non-parameter tests and regression model,this paper studies the impact of formation of audit committee on board characteristics and the relation between board characteristics and the ratio of audit fee to asset.We find that the board size and independence,the number and remuneration of independent directors of board with audit committee are significantly different from that of board without audit committee,and that board independence,number and remuneration of independent director,and number of non-independent director are significant association with ratio of audit fee to asset for listed firm with audit committee,and auditor's tenure is significant association with ratio of audit fee to asset for listed firm without audit committee.Our results show that audit committee strengthens independent director's responsibility and promotes board and auditor independence as well as it improves firms' internal control system,but it don't change average tenure of auditor.