Signaling, auditing fees, and earnings surprise before and after split-share structure reform in China

In China, the split-share structure reform (SSR) has many benefits in helping decrease agency costs and normalise stock markets. This paper explores specific effects of this policy on firms’ signalling behaviour, audit fee charges meeting or beating earnings expectation (MBE) strategy through empirical research into relations these three subjects, combined with a cross-sectional analysis their deeper influences. The outcomes study demonstrate that after SSR, firms have more incentive to convey inside information signal earnings, charged for is reduced are willing meet expectations.   Key words: Split-share reform; signalling; fees; surprise; management disclosure.