Skip to main content

Volatility of other comprehensive income and audit fees: evidence from China


Managers make numerous subjective judgments about other comprehensive income (OCI) due to the fair-value measurement, which increases the auditing risks and challenges for auditors. This study investigates the relationship between audit fees and the volatility of OCI in China using a large sample of Chinese A-share listed companies from 2014 to 2018. Such relationship cannot be confirmed for these companies, including those audited by Big 4 firms and the top 10 accounting firms in China, but is significantly positive for those audited by experienced auditors. Results indicate that audit firms in China generally do not seriously consider risks concerning the volatility of OCI. However, auditors with long tenures are more aware of these risks and have correspondingly higher prices compared with their peers.

This is a preview of subscription content, access via your institution.


  1. Industry dummy variables are added on the basis of industry category on the official website of Shanghai Security Exchange and Shenzhen Security Exchange. The detailed variable categories are as follows: farming, forestry, animal husbandry, and fishery (1001–1200); mining (1201–1400); manufacturing (1401–1600); electricity, heat, gas, and water production and supply (1601–1800); construction (1801–2000); wholesale and retail (2001–2200); transportation, storage, and post (2201–2400); lodging and catering (2401–2600); information transmission, software, and information technology services (2601–2800); real estate (3001–3200); leasing and business services (3201–3400); scientific research and technical services (3401–3600); water conservancy, environment, and public facilities management (3601–3800); resident services (3801–4000); education (4001–4200); health and social work (4201–4400); culture, sports, and entertainment (4401–4600); and conglomerates (> 4600). Financial companies (2800–3000) are excluded from this study.


Download references

Author information

Authors and Affiliations


Corresponding author

Correspondence to Md Jahidur Rahman.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and Permissions

About this article

Verify currency and authenticity via CrossMark

Cite this article

Rahman, M.J., Wu, T. Volatility of other comprehensive income and audit fees: evidence from China. Int J Discl Gov 18, 1–15 (2021).

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI:


  • Other comprehensive income
  • Audit fees
  • Audit tenure
  • Big 4 firms