Can Big 4 Auditors Increase Accounting Quality
DOI:
https://doi.org/10.54691/bcpbm.v25i.1764Keywords:
Audit quality, Big 4 accounting firm, Legal riskAbstract
This study investigates the relationship between the big Four auditors and accounting quality. We tested this prediction by examining a sample of A-share listed companies. The results show that the big four auditors can significantly improve the accounting quality of listed companies, while corporate leverage ratio and board size also affect the accounting quality of listed companies. The analysis also found that lower accounting quality will increase the attention of securities analysts. Listed companies should timely disclose relevant information to improve accounting quality.
Downloads
References
K Yazawa. (2010). Big4 and audit quality: audit cost hypothesis and conservative accounting hypothesis. Aoyama Journal of Business, 44(4), 165-181.
Liu Feng, &. (2007). Do the International Big Four Mean high Audit Quality? A Test based on accounting conservatism. Accounting research(3), 9.
Francis, J. R. (2004). What do we know about audit quality?. The British accounting review, 36(4), 345-368.
Aghaei Chadegani, A. (2011). Review of studies on audit quality. Available at SSRN 2227359.
Tong, L., Wu, B., & Zhang, M. (2022). Do auditors’ early-life socioeconomic opportunities improve audit quality? Evidence from China. The British Accounting Review, 54(2), 101040.
Athavale, M., Guo, Z., Meng, Y., & Zhang, T. (2022). Diversity of signing auditors and audit quality: Evidence from capital market in China. International Review of Economics & Finance.
AL-Qatamin, K. I., & Salleh, Z. (2020). Audit quality: A Literature overview and research synthesis. IOSR Journal of Business and Management (IOSR-JBM), 22(2), 56-66.
Kitiwong, W., & Sarapaivanich, N. (2020). Consequences of the implementation of expanded audit reports with key audit matters (KAMs) on audit quality. Managerial Auditing Journal.
Narges Sarlak, N., Faraji, O., Ezadpour, M., & Joudaki Chegeni, Z. (2018). CEO Over-confidence and corporate cash holdings: Emphasizing the moderating role of audit quality. Journal of Accounting and Auditing Review, 25(2), 199-214.
Tarmidi, D., Fitria, G. N., & Ahmad, Z. (2019). Financial performance and audit quality: comparative study of investor reaction. Scholars Bulletin, 5(12), 825-830.
Downloads
Published
Issue
Section
