Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments April 8, 2020 erstellt
Description:
We examine the consequences of a 2010 Hong Kong regulation that allows, for the first time, companies incorporated in mainland China and cross-listed in Hong Kong (H share companies) to hire mainland domiciled auditors to audit their Hong Kong financial reports. We find that less than one third of the H share companies switched to mainland auditors. The switchers experience a decline in both audit fees and audit quality. Surprisingly, the non-switchers also experience a marginally significant decline in audit quality, consistent with the hypothesis that competition from mainland domiciled auditors could lead to a race to the bottom