Data assetization and audit pricing: evidence from China’s digital economy

As data evolve into a core factor of production in the digital economy, their assetization poses unprecedented challenges to financial reporting and auditing practices. Based on a sample of Chinese A-share listed firms in Shanghai and Shenzhen from 2013 to 2024, this study empirically examines the impact of corporate data assetization on audit pricing and its underlying mechanisms. The results show that data assetization significantly increases audit fees, a finding robust to a series of tests. Mechanism analysis reveals three distinct channels: higher audit resource input, greater difficulty in measuring excess goodwill, and elevated operational risk. Further analysis shows that the upward pressure on audit fees is more pronounced among non-state-owned enterprises, technology-intensive firms, and firms with aggressive earnings management, poor ESG performance, or negative textual tone in annual reports. Additional evidence confirms that data assetization increases auditors’ propensity to issue modified audit opinions. This study extends audit pricing research to data assets by demonstrating how their unique attributes reshape audit risk and resource allocation. It also offers practical implications for corporate governance, auditor expertise, and regulatory standard-setting.