Some A-share companies are also listed overseas, e.g., on the New York Stock Exchange or Hong Kong
Stock Exchange. Because the annual reports of these companies need to be audited by both domestic and
overseas auditors, they pay both foreign and domestic audit fees, although many fail to disclose them separately.
We thus include a dummy variable (H_stock) to control for this factor. We assign it a 1 if the company
is listed on the Hong Kong Stock Exchange, and otherwise 0.