Skip to main content

LUP Student Papers

LUND UNIVERSITY LIBRARIES

The Audit Pricing Implications of the CSRD: Evidence from Listed European Firms

Chen, Qiyu LU and Wang, An LU (2026) BUSN79 20261
Department of Business Administration
Abstract
This thesis examines whether the implementation of the Corporate Sustainability Reporting Directive (CSRD) affects audit fees among listed European firms. Using a firm-year panel dataset from 2017 to 2025 and a difference-in-differences research design, the study compares firms directly subject to CSRD-related reporting requirements with non-mandated firms before and after the directive’s initial implementation. The findings show that mandated firms experience a significant audit fee increase of approximately 6.6% after CSRD implementation, suggesting that mandatory sustainability reporting and assurance requirements raise audit effort, complexity, and engagement risk. However, the evidence does not support a distinct spillover effect on... (More)
This thesis examines whether the implementation of the Corporate Sustainability Reporting Directive (CSRD) affects audit fees among listed European firms. Using a firm-year panel dataset from 2017 to 2025 and a difference-in-differences research design, the study compares firms directly subject to CSRD-related reporting requirements with non-mandated firms before and after the directive’s initial implementation. The findings show that mandated firms experience a significant audit fee increase of approximately 6.6% after CSRD implementation, suggesting that mandatory sustainability reporting and assurance requirements raise audit effort, complexity, and engagement risk. However, the evidence does not support a distinct spillover effect on listed SMEs, nor does it show a significantly stronger effect for environmentally sensitive industries. Further analysis indicates that stronger pre-existing Environmental and Social performance mitigates the CSRD-related audit fee increase, while aggregate ESG performance is not significant. Overall, the study provides early empirical evidence that CSRD implementation increases audit pricing, particularly for directly mandated firms. (Less)
Please use this url to cite or link to this publication:
author
Chen, Qiyu LU and Wang, An LU
supervisor
organization
course
BUSN79 20261
year
type
H1 - Master's Degree (One Year)
subject
keywords
CSRD, Audit Fee, Sustainability Assurance, Spillover, ESG Maturity
language
English
id
9230607
date added to LUP
2026-07-01 12:31:42
date last changed
2026-07-01 12:31:42
@misc{9230607,
  abstract     = {{This thesis examines whether the implementation of the Corporate Sustainability Reporting Directive (CSRD) affects audit fees among listed European firms. Using a firm-year panel dataset from 2017 to 2025 and a difference-in-differences research design, the study compares firms directly subject to CSRD-related reporting requirements with non-mandated firms before and after the directive’s initial implementation. The findings show that mandated firms experience a significant audit fee increase of approximately 6.6% after CSRD implementation, suggesting that mandatory sustainability reporting and assurance requirements raise audit effort, complexity, and engagement risk. However, the evidence does not support a distinct spillover effect on listed SMEs, nor does it show a significantly stronger effect for environmentally sensitive industries. Further analysis indicates that stronger pre-existing Environmental and Social performance mitigates the CSRD-related audit fee increase, while aggregate ESG performance is not significant. Overall, the study provides early empirical evidence that CSRD implementation increases audit pricing, particularly for directly mandated firms.}},
  author       = {{Chen, Qiyu and Wang, An}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The Audit Pricing Implications of the CSRD: Evidence from Listed European Firms}},
  year         = {{2026}},
}