Auditor choice and accruals patterns of cross-listed firms

• 作者: Bing Wang Qingquan Xin
• 来源期刊: 中国会计学刊：英文版
• 学科: 经济
• 关键词: CROSS-LISTING BIG 4 AUDITORS ACCRUALS EMERGING MAR
• 年，卷（期）: 2011,（4）
• 页码范围: 233-251
• 页数: 19页
• 分类号: F832.51

摘要

We examine the association between auditor choice and the accruals patterns of Chinese listed firms that cross-list in Hong Kong.Our evidence suggests that the clients of Big 4 auditors report lower unsigned discretionary accruals relative to the clients of non-Big 4 auditors.Further,we find that 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.These findings suggest that Big 4 auditors play a meaningful role in improving earnings quality for cross-listed firms,which helps to explain why crosslisted firms have higher earnings quality than their domestic counterparts,as documented in the previous literature.