Supply Chain Stability and Audit Fee in Emerging Markets: Analyst Attention as Moderator

Abstract

— This study investigates the impact of enterprise supply chain stability on audit fees in the context of China ’ s capital market. Drawing on audit risk theory and resource dependence perspectives, the analysis argues that stable supply chain relationships reduce operational uncertainty and improve the credibility of financial reporting, thereby lowering auditors ’ assessment of engagement risk. Using data from Chinese listed firms between 2010 and 2024, the empirical results demonstrate that firms with more stable supply chains are associated with lower audit fees. The findings further reveal that analyst attention strengthens this negative relationship by enhancing information transparency and validating the credibility of operational signals in the capital market. These results enrich the literature on audit pricing by incorporating non-financial operational factors and external monitoring into the understanding of audit fee determinants. They also provide practical implications for auditors and regulators seeking to better evaluate how supply chain structures and market oversight shape audit outcomes.