Anmerkungen:
In: The Accounting Review, Forthcoming
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 15, 2014 erstellt
Beschreibung:
This study examines whether China's weak institutional environment results in lower quality audits by the Big Four firms. We find that the Big Four assign their less experienced partners to companies that are listed only in China compared with clients cross-listed in Hong Kong. The Big Four are less likely to issue modified audit reports and they charge lower audit fees for clients that are listed only in China. Finally, companies listed only in China have larger signed abnormal accruals than do companies cross-listed in Hong Kong. Overall, we conclude that the weak institutional environment in China results in the Big Four firms providing lower quality audits to companies that are listed only in China