Does mandatory CSR disclosure affect audit efficiency? Evidence from China

IF 2.8 3区 管理学 Q2 BUSINESS, FINANCE
Yonghai Wang, Jiawei Wang
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引用次数: 1

Abstract

Purpose This study aims to examine the causal relationship between mandatory CSR disclosure and financial audit efficiency. Design/methodology/approach The authors use the unique institutional setting of China, where a subset of listed firms are mandated to disclose their corporate social responsibility (CSR) reports. The authors use propensity score matching and difference-in-differences approaches to compare audit efficiency in the pre- and post-mandatory CSR disclosure periods between the treatment and control groups. The regression models are estimated with robust standard errors clustered at the firm level. Findings This study finds that following China’s adoption of the mandatory disclosure of CSR, audit report lags decreased by 6% on average, suggesting that audit efficiency improved greatly following mandatory CSR disclosure. Moreover, this association is stronger when firms have better CSR performance, higher CSR report preparation costs, more earnings management before disclosure regulations and better internal controls and when firms belong to high-profile industries and in Big 4 (Big 10) accounting firms. Moreover, neither audit quality nor audit fees decrease when shorter audit lags occur for firms with mandatory CSR disclosures. Overall, the evidence suggests that mandatory CSR disclosure has a positive effect on audit efficiency and that the improvement of audit efficiency does not come as a consequence of reducing audit fees or deteriorating audit quality. Research limitations/implications The results reported in this study have practical and policy implications for policymakers, accounting firms and auditors to pay more attention to CSR information. Originality/value This study provides evidence of the causal relationship between mandatory CSR disclosure regulation and audit efficiency. It enriches the research on audit service production efficiency from the perspective of nonfinancial information disclosure.
强制性企业社会责任披露是否影响审计效率?来自中国的证据
目的探讨强制性企业社会责任披露与财务审计效率之间的因果关系。设计/方法/方法作者采用了中国独特的制度设置,在中国,一小部分上市公司被要求披露其企业社会责任(CSR)报告。作者使用倾向得分匹配和差异中的差异方法来比较处理组和对照组之间强制性企业社会责任披露前后的审计效率。回归模型估计与稳健的标准误差聚集在企业水平。本研究发现,中国实行企业社会责任强制披露后,审计报告滞后率平均下降了6%,表明企业社会责任强制披露后,审计效率大大提高。此外,当企业具有较好的企业社会责任绩效、较高的企业社会责任报告编制成本、更多的披露前盈余管理和较好的内部控制,以及企业属于高知名度行业和四大(十大)会计师事务所时,这种关联更强。此外,对于强制企业社会责任披露的公司,当审计滞后时间缩短时,审计质量和审计费用都不会下降。总体而言,有证据表明,强制性企业社会责任披露对审计效率有积极的影响,审计效率的提高并不是审计费用减少或审计质量下降的结果。本研究报告的结果对政策制定者、会计师事务所和审计师更加关注企业社会责任信息具有现实意义和政策意义。本研究提供了强制性企业社会责任披露法规与审计效率之间因果关系的证据。它丰富了非财务信息披露视角下审计服务生产效率的研究。
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来源期刊
CiteScore
5.40
自引率
13.80%
发文量
45
期刊介绍: The key areas addressed are: ■Audit and Assurance (financial and non-financial) ■Financial and Managerial Reporting ■Governance, controls, risks and ethics ■Organizational issues including firm cultures, performance and development In addition, the evaluation of changes occurring in the auditing profession, as well as the broader fields of accounting and assurance, are also explored. Debates concerning organizational performance and professional competence are also covered.
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