Abstract:Based on the sample of A-share listed companies in China from 2007 to 2015, this paper makes a research on the effect of earnings management on the downward stickiness of audit fees. The results indicate that different way of earnings management have different effects on the stickiness of audit fees. Accrual earnings management enhances the downward stickiness. With the increase of accrual earnings management, the “easy to rise and difficult to fall” characteristic of audit fees is strengthened, and this effect is both pronounced for positive and negative accrual earning management. Besides, real earnings management shows no influence on the audit fees stickiness. But earnings smoothness can weaken the downward stickiness of audit fees. That is, the stickiness of audit fees gets down with the increase of the earning smoothness.