Signing auditors’ cultural background and client investment efficiency

Hou, Fei; Li, Meina; Xu, Yaxing; Song, Zhanqian

doi:10.1016/j.frl.2022.103417

Cited by 7 publications

(4 citation statements)

References 22 publications

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“…Existing research on Chinese merchant chambers focuses on the influence of traditional merchant chamber culture, it' was found that traditional merchant guild culture is significantly negatively associated with owner‐manager agency costs or real earning management of the enterprise (Du et al., 2019; Wu, 2023), and significantly increases corporate trade credit (Xiu et al., 2023). Besides, signing auditors with merchant guilds cultural background can also significantly increase investment efficiency (Hou et al., 2023). These studies show that traditional merchant chamber culture still has an important influence on modern corporate governance.…”

Section: Institutional Background and Hypotheses Developmentmentioning

confidence: 99%

“…While existing research on Chinese merchant chambers focuses on the influence of traditional merchant chamber culture (Du et al, 2019;Hou et al, 2023;Wu, 2023;Xiu et al, 2023), these studies show that traditional merchant chamber culture still has an important influence on modern corporate governance. In the domain of research concerning the corporate governance effects of alien merchant chambers, no prior studies have explored their impact on fundamental corporate governance aspects, such as enterprise innovation.…”

Section: Introductionmentioning

confidence: 99%

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Alien merchant chambers and enterprise innovation: Evidence from China

Zhou,

Zhao

2023

American J Econ Sociol

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Based on social capital theory, this paper aims to investigate the impact of member enterprises of alien merchant chambers on enterprise innovation, within A‐share listed companies on the Shanghai and Shenzhen Stock Exchanges of China from 2010 to 2020. Additionally, the study seeks to explore the role played by social capital resulting from participation in these alien merchant chambers. Furthermore, we delve into the moderating effects of the number of alien merchant chambers and the degree of marketization in the enterprise's location. Moreover, we analyze the influence of heterogeneity in firm ownership and firm type. Our findings reveal that member enterprises of alien merchant chambers can increase their social capital and consequently promoting innovation; both the quantity of alien merchant chambers and the level of marketization in an enterprise's location positively influence this enhancement. Furthermore, the impact of state‐owned enterprises and non‐high‐tech enterprises on enterprise innovation, following their engagement with alien merchant chambers, surpasses that of non‐state‐owned enterprises and high‐tech enterprises. This research bridges the gap in understanding the corporate governance implications of alien merchant chambers, provides empirical evidence concerning Chinese alien merchant chambers, and addresses inquiries regarding the influence of merchant chambers' social capital. Additionally, it proposes a novel approach for listed companies to overcome resource constraints and to collaboratively pursue development, especially in light of the challenges posed by the COVID‐19 pandemic.

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Section: Institutional Background and Hypotheses Developmentmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Alien merchant chambers and enterprise innovation: Evidence from China

Zhou,

Zhao

2023

American J Econ Sociol

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“…The results show that high quality accounting information reduces both underinvestment and overinvestment. Independent external audits can reduce stakeholder information asymmetry problems by ensuring that the accounting information presented is of high quality (Mudjijah et al, 2019;Kadapakkam et al, 1998;Lai, 2009;Hou et al, 2023).…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Firm size moderate the effect of audit quality and managerial ownership on investment efficiency

Darmayanti

Wirama

Sudana

et al. 2023

irjmis

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This study aims to examine the effect of audit quality and managerial ownership on firms' investment efficiency. In addition, this study also aims to investigate the effect of firm size in moderating the effects of audit quality and managerial ownership on investment efficiency. The population of this study is manufacturing sector companies listed on the Indonesia Stock Exchange (IDX). Using a sample of 162 companies in 2019-2021, 486 observations were obtained. This study used logistic and moderated regression analyses (MRA) with Eviews 12 software for data analysis. The results show that audit quality does not affect investment efficiency. Managerial ownership affects investment efficiency. Firm size does not moderate the effect of audit quality on investment efficiency. Firm size can strengthen the effect of managerial ownership on investment efficiency.

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“…Therefore, in the study of OESIC and UAB, the interaction of individual characteristics cannot be ignored. Recent studies show that cultural background is a significant aspect of individual differences (Sarkar and Huang, 2012;Hou et al 2023). Individuals with different cultural backgrounds may have different perceptions of OEC that further affect their moral judgement and (un)ethical behaviour.…”

mentioning

confidence: 99%

Effect of organizational ethical self-interest climate on unethical accounting behaviour with two different motivations in China: the moderating effect of Confucian ShiZhong Thinking

Deng,

Ye,

et al. 2023

Humanit Soc Sci Commun

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Organizational Ethical Self-Interest Climate (OESIC), a type of Organizational Ethical Climate (OEC) that exists widely in various organizations, plays an important role in unethical behaviours. Unfortunately, there is still little in-depth research on the effect of OESIC on Unethical Accounting Behaviour (UAB) and its related mechanism. This paper aims to explore the impact of OESIC on UAB with two different motivations i.e., Unethical Pro-Self Accounting Behaviour (UPSAB) and Unethical Pro-Organizational Accounting Behaviour (UPOAB). In addition, this paper studies the moderating effect of Confucian ShiZhong Thinking (CSZ Thinking), a typical characteristic of the Chinese people. In this paper, questionnaire data from 258 Chinese accountants at different professional levels were collected. A regression model was used to analyse and test the collected data. The results indicate that OESIC is positively correlated with UAB, and the effect of OESIC on UPSAB is more significant than the effect on UPOAB. CSZ Thinking weakens the positive impact of OESIC on UPSAB and UPOAB. This paper expands the research scope of OESIC into the accounting field and the Chinese context, which is helpful to better understand the relationship among OESIC, UAB and Confucian ShiZhong Thinking. This paper can enlighten organizational managers to consider the role of informal management control systems in restraining UAB and to pay attention to the two types of UAB with different motivations, especially UPOAB.

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Signing auditors’ cultural background and client investment efficiency

Cited by 7 publications

References 22 publications

Alien merchant chambers and enterprise innovation: Evidence from China

Alien merchant chambers and enterprise innovation: Evidence from China

Firm size moderate the effect of audit quality and managerial ownership on investment efficiency

Effect of organizational ethical self-interest climate on unethical accounting behaviour with two different motivations in China: the moderating effect of Confucian ShiZhong Thinking

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