The impact of internal governance mechanisms on audit quality: a study of large listed companies in China

Q4 Economics, Econometrics and Finance
Y. Shan
{"title":"The impact of internal governance mechanisms on audit quality: a study of large listed companies in China","authors":"Y. Shan","doi":"10.1504/IJAAPE.2014.059183","DOIUrl":null,"url":null,"abstract":"This paper examines whether the audit quality of Chinese listed companies is affected by internal governance mechanisms (IGMs). The dataset comprises 443 firm-year observations during 2002-2005. The results show that foreign ownership concentration and the number of professional supervisors are positively related to audit quality, but the size of the supervisory board shows a negative correlation. Other IGMs including state ownership concentration, the size of board of directors, the number of independent directors, the frequency of board meetings, and the frequency of supervisory board meetings are found to have no impact on audit quality. The contribution of this paper is threefold. First, according to Young et al. (2008), this paper develops hypotheses from the principal-principal agency problem perspective and examines the impact of IGMs of China's highly concentrated state ownership and two-tier board system on audit quality. Second, this paper employs the directors on the board of directors and the supervisory board as pairwise functional units and examines whether there is a level of functional redundancy proposed by Ding et al. (2010). Third, this paper adds to the extant literature by showing the relevance of the legal environment as one of external governance mechanisms.","PeriodicalId":35413,"journal":{"name":"International Journal of Accounting, Auditing and Performance Evaluation","volume":null,"pages":null},"PeriodicalIF":0.0000,"publicationDate":"2014-02-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1504/IJAAPE.2014.059183","citationCount":"19","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"International Journal of Accounting, Auditing and Performance Evaluation","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1504/IJAAPE.2014.059183","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"Economics, Econometrics and Finance","Score":null,"Total":0}
引用次数: 19

Abstract

This paper examines whether the audit quality of Chinese listed companies is affected by internal governance mechanisms (IGMs). The dataset comprises 443 firm-year observations during 2002-2005. The results show that foreign ownership concentration and the number of professional supervisors are positively related to audit quality, but the size of the supervisory board shows a negative correlation. Other IGMs including state ownership concentration, the size of board of directors, the number of independent directors, the frequency of board meetings, and the frequency of supervisory board meetings are found to have no impact on audit quality. The contribution of this paper is threefold. First, according to Young et al. (2008), this paper develops hypotheses from the principal-principal agency problem perspective and examines the impact of IGMs of China's highly concentrated state ownership and two-tier board system on audit quality. Second, this paper employs the directors on the board of directors and the supervisory board as pairwise functional units and examines whether there is a level of functional redundancy proposed by Ding et al. (2010). Third, this paper adds to the extant literature by showing the relevance of the legal environment as one of external governance mechanisms.
内部治理机制对审计质量的影响——以中国大型上市公司为例
本文考察了中国上市公司的审计质量是否受到内部治理机制的影响。该数据集包括2002-2005年期间443个公司年观测数据。结果表明,外资股权集中度和专业监事人数与审计质量呈正相关,监事会规模与审计质量呈负相关。国有股集中度、董事会规模、独立董事人数、董事会会议频次、监事会会议频次等其他IGMs对审计质量没有影响。本文的贡献有三个方面。首先,根据Young等人(2008)的研究,本文从委托-委托代理问题的角度提出假设,考察了中国高度集中的国有制和双层董事会制度下政府间机构对审计质量的影响。其次,本文将董事会董事和监事会董事作为两两职能单位,检验Ding等(2010)提出的职能冗余程度是否存在。第三,本文通过展示法律环境作为外部治理机制之一的相关性来补充现有文献。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
求助全文
约1分钟内获得全文 求助全文
来源期刊
CiteScore
0.70
自引率
0.00%
发文量
7
期刊介绍: IJAAPE publishes original scholarly papers across the whole spectrum of: financial accounting, managerial accounting, accounting education, auditing, taxation, public sector accounting, capital market and accounting, accounting information systems, performance evaluation, corporate governance, ethics, and financial management. All methodologies, such as analytical, empirical, behavioural, surveys, and case studies are welcome. IJAAPE encourages contributions especially from emerging markets and economies in transition and studies whose results are applicable across nation states or capable of being adapted to the different accounting and business environments.
×
引用
GB/T 7714-2015
复制
MLA
复制
APA
复制
导出至
BibTeX EndNote RefMan NoteFirst NoteExpress
×
提示
您的信息不完整,为了账户安全,请先补充。
现在去补充
×
提示
您因"违规操作"
具体请查看互助需知
我知道了
×
提示
确定
请完成安全验证×
copy
已复制链接
快去分享给好友吧!
我知道了
右上角分享
点击右上角分享
0
联系我们:info@booksci.cn Book学术提供免费学术资源搜索服务,方便国内外学者检索中英文文献。致力于提供最便捷和优质的服务体验。 Copyright © 2023 布克学术 All rights reserved.
京ICP备2023020795号-1
ghs 京公网安备 11010802042870号
Book学术文献互助
Book学术文献互助群
群 号:481959085
Book学术官方微信