Auditor choice and accruals patterns of cross-listed firms |
| |
Authors: | Bing Wang Qingquan Xin |
| |
Institution: | 1. Department of Accountancy, Nanjing University, China;2. School of Economics and Business Administration, Chongqing University, China |
| |
Abstract: | We examine the association between auditor choice and the accruals patterns of Chinese listed firms that cross-list in Hong Kong. Our evidence suggests that the clients of Big 4 auditors report lower unsigned discretionary accruals relative to the clients of non-Big 4 auditors. Further, we find that cross-listed firms with non-Big 4 auditors are more likely to understate their earnings and experience larger reversals of accruals in the future than cross-listed firms with Big 4 auditors. These findings suggest that Big 4 auditors play a meaningful role in improving earnings quality for cross-listed firms, which helps to explain why cross-listed firms have higher earnings quality than their domestic counterparts, as documented in the previous literature. |
| |
Keywords: | |
本文献已被 ScienceDirect 等数据库收录! |
|