Auditor choice and accruals patterns of cross-listed firms - Softcover

Xin, Qingquan; Wang, Bing

Softcover

ISBN 10: 3659571814 ISBN 13: 9783659571817

Publisher: LAP LAMBERT Academic Publishing, 2014

Synopsis

This study investigates whether the accrual patterns differ between two groups of Chinese firms cross-listed in Hong Kong: those employing Big4 vs. those employing non-Big 4. The evidence suggests that clients of Big 4 auditors report less unsigned discretionary accruals relative to clients of non-Big 4 auditors. Further, 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. The findings suggest Big 4 auditors play a meaningful role in improving earnings quality for cross-listed firms, which help explain why cross-listed firms have higher earning quality than their domestic counterparts documented by prior literature. This Study addresses an interesting and important research question.

About this title

About the Author

Qingquan Xin is a Professor of Accounting at the school of Economics and Business Administration of the Chongqing University. Professor Xin’s primary research interests include corporate governance and accounting information in capital markets.

Edition details

• Publisher: LAP LAMBERT Academic Publishing
• Publication date: 2014
• ISBN 10: 3659571814
• ISBN 13: 9783659571817
• Binding: Paperback
• Language: English
• Number of pages: 52