Political connections, managerial incentives and auditor choice: evidence from China
學年 104
學期 1
出版(發表)日期 2015-10-01
作品名稱 Political connections, managerial incentives and auditor choice: evidence from China
著者 Chia-Ling Cheng; Chih-Shun Hsu; Fan-Hua Kung
著錄名稱、卷期、頁數 Pacific Accounting Review 27(4), p.441-465
摘要 Purpose – The purpose of this paper is to investigate the relationship between the political connections of firms, managerial incentives and auditor choice. Data from China were used to determine whether managers in firms with political connections are more likely to hire auditors of low quality to help them cover up earnings management and opportunistic behavior. Design/methodology/approach – Cross-sectional analysis was conducted using data covering the period from 2003 to 2009 and the Top 10 auditors were used as a proxy to represent the demand for high-quality auditors. Three proxies were used to measure the political connectedness: state-owned enterprises (SOEs), politically connected CEOs and state ownership. Findings – This paper provides empirical evidence that firms with political connections do not demand stringency in the monitoring and information roles of auditing. Moreover, politically connected firms with high managerial incentives are likely to choose non-Top 10 auditors. Originality/value – This paper provides a unique focus on the role of managerial incentives in the appointment of auditors. This paper tests the managerial opportunism hypothesis in another context and results of this paper help to elucidate the effects of managerial incentives on the demand of audit quality.
關鍵字 State ownership;Managerial incentives;Political connections;Auditor choice
語言 en
ISSN 0114-0582
期刊性質 國外
收錄於 ESCI Scopus
國別 GBR
出版型式 ,電子版,紙本

機構典藏連結 ( http://tkuir.lib.tku.edu.tw:8080/dspace/handle/987654321/108981 )