Mutual supervision or conspiracy? The incentive effect of multiple large shareholders on audit quality requirements

Zhang, Lipai; Li, Biao

doi:10.1016/j.irfa.2022.102274

Cited by 27 publications

(12 citation statements)

References 35 publications

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“…That is to say, the shareholding structure of MLS restrains management decisions, reduces corporate agency costs, and mitigates corporate information asymmetry. When a firm with MLS, collusion between controlling shareholders and manager is more costly because MLS not only monitor and check controlling shareholders and manager, but also improve internal control quality (Zhang and Li, 2022). Thus, MLS reduces the possibility of collusion and improves the efficiency of corporate governance (He et al, 2022).…”

Section: Theoretical Analysis and Hypothesis Developmentmentioning

confidence: 99%

“…Following related literature (Jiang et al, 2020;Zhang and Li, 2022), we define Multi as a dummy variable measured by whether a firm has more than two large shareholders. The Multi dummy variable is equal to one if the firm has more than one shareholder and 0 otherwise.…”

Section: Multiple Large Shareholdersmentioning

confidence: 99%

“…To empirically explored the impacts of MLS on ESG disclosure, we construct our baseline regression model based on related literature as follows (Jiang et al, 2020;Zhang and Li, 2022).…”

Section: Model Specificationmentioning

confidence: 99%

“…For instance, Jiang et al (2020) hold that MLS is positively related to earnings management due to collusion and cost-sharing, which highlights a potential dark side of MLS. Moreover, MLS tend to collude and form an alliance to increase controllable profits when firms' behaviors are inconsistent with their interests (Zhang and Li, 2022). Therefore, whether MLS can facilitate firms' ESG disclosure still need to be further examined.…”

Section: Introductionmentioning

confidence: 99%

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ESG disclosure facilitator: How do the multiple large shareholders affect firms’ ESG disclosure? evidence from China

Wang

Fan

Zhuang

2023

Front. Environ. Sci.

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The Environmental, social, and governance (ESG) disclosure is an important aspect of firms’ strategies. Therefore, exploring how to facilitate the firms’ ESG disclosure is necessary. This paper examines the role of multiple large shareholders (MLS, hereafter) in facilitating a firm’s ESG disclosure. Using a sample of Chinese listed firms during 2011–2020, we compare the ESG disclosure of firms having MLS with that of firms having a single large shareholder (SLS, hereafter) and find that having MLS associated with significantly higher ESG disclosure. After addressing endogeneity and altering the measurement of MLS, the benchmark results still hold after. Additional analysis shows that MLS exerts a more prominent positive effect on ESG disclosure in SOEs. We also examine the role of the other large shareholders in facilitating firms’ ESG disclosure. Our findings reveal a bright side of MLS: it facilitates ESG disclosure by monitoring. Therefore, this paper’s conclusion sheds new light on the bright side of MLS from the perspective of firms’ ESG disclosure and provides insights into how to improve ESG disclosure.

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Section: Theoretical Analysis and Hypothesis Developmentmentioning

confidence: 99%

Section: Multiple Large Shareholdersmentioning

confidence: 99%

“…To empirically explored the impacts of MLS on ESG disclosure, we construct our baseline regression model based on related literature as follows (Jiang et al, 2020;Zhang and Li, 2022).…”

Section: Model Specificationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

ESG disclosure facilitator: How do the multiple large shareholders affect firms’ ESG disclosure? evidence from China

Wang

Fan

Zhuang

2023

Front. Environ. Sci.

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“…Auditors to obtain or collect adequate audit evidence, one of which is to use well-executed audit procedures. The audit procedure is an instruction that explains in detail how to obtain audit evidence during the audit process (Zhang and Li 2022).…”

Section: Audit Proceduresmentioning

confidence: 99%

An Analysis of Auditors’ Characteristic and Non-Characteristic Components on Detecting The Fraudulent Occurrences in Public Sectors

Aisyaturrahmi

2022

Utsaha

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This study is to examine the influence of the auditors’ characteristic and non-characteristic components on detecting the fraudulent occurrences in the public sectors. Specifically, this study focuses on financial statement fraud as it has the most negative impacts on the society and beyond. This study is developed by the empirical evidence from Indonesian external auditors. The author in the initial stage creates hypotheses to explain the interaction processes between the auditors’ characteristic and non-characteristic components on detecting the fraudulent occurrences in the public sectors. The results of this study concluded that audit procedures and strategies have a significant effect on detecting financial statement fraud in public sector organizations. Meanwhile, The auditors competence is not significantly responsible in detecting financial statement fraud in public sector organizations. The auditors independence and professional skepticism has a significant effect on detecting fraudulent reports in public sector organizations. Thus, the auditor objectivity has no significant effect on the success of detecting financial statement fraud in public sector organizations.

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Non-actual controller and enterprise technology innovation

Zhou,

Liu,

Fan

2024

Ann Oper Res

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Mutual supervision or conspiracy? The incentive effect of multiple large shareholders on audit quality requirements

Cited by 27 publications

References 35 publications

ESG disclosure facilitator: How do the multiple large shareholders affect firms’ ESG disclosure? evidence from China

ESG disclosure facilitator: How do the multiple large shareholders affect firms’ ESG disclosure? evidence from China

An Analysis of Auditors’ Characteristic and Non-Characteristic Components on Detecting The Fraudulent Occurrences in Public Sectors

Non-actual controller and enterprise technology innovation

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