Auditor choice and accruals patterns of cross-listed firms

Artikel

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: China Journal of Accounting Research ; ISSN: 1755-3091 ; Volume: 4 ; Year: 2011 ; Issue: 4 ; Pages: 233-251 ; Amsterdam: Elsevier

Classification and Topics

• Classification: Management ; International Financial Markets ; Corporate Finance and Governance: Government Policy and Regulation ; Accounting and Auditing: General
• Subject: Cross-listing ; Big 4 auditors ; Accruals ; Emerging markets

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Wang, Bing ; Xin, Qingquan
• Event: Veröffentlichung
• (who): Elsevier
• (where): Amsterdam
• (when): 2011

Further information

• DOI: doi:10.1016/j.cjar.2011.09.002
• Handle: http://hdl.handle.net/10419/187559
• Last update: 10.03.2025, 11:43 AM CET