Government Inspectors'''' Penalties and Charging Fee of Investment Banks--Empirical research based on data of Chinese public companies

摘要

This paper uses data of Chinese public companies from 2004-2015 to test the relationship between government inspectors''''penalties and charging fee of investment bank.The test results show that after getting the penalties from government inspectors the charging fee of investment bank would decrease significantly.This negative impact of penalties on charging fee is more significant to the investment bank that has high reputation.This indicates that the penalties of government inspectors damage the reputation of investment banks.This research could help understand the effects of the government inspection on the reputation of investment banks.