Impact of Actual-Contractual Difference in Audit Hours and Fees on Stock Price Crash Risk

[Purpose]This study investigate the effect of the actual-contractual differences in audit hours and the actual-contractual in audit fees disclosed in the firms report on the risk of stock price crash. [Methodology]The samples were taken from 2.396 of yearly data of compaines Korea Stock Exchange and KOSDAQ from 2018 to 2021. The results of the empirical analysis are as follows. [Findings]First, the higher the actual-contractual differences in audit hours. the lower the risk of stock price crash. Second. it is predicted that the actual-contractual differences in audit fees would effect the risk of stock price crash. but the analysis don’t show a significant relationship. [Implications]We contributes to literature by empirically proving the effect of the actual-contractual differences in audit hours and the actual-contractual difference in audit fees. which has ot been explicitly observed in the academies.