Audit firm's Confucianism and stock price crash risk: Evidence from China

被引：18
|
作者：
Fan, Yunqi [1 ]
Xu, Zijing [1 ]
机构：
[1] Jiangnan Univ, Sch Business, 1800 Lihu Ave, Wuxi 214122, Jiangsu, Peoples R China
来源：
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS | 2022年 / 79卷
关键词：
Audit firms; Confucianism; Stock price crash risk; Audit quality; ETHICS; BUSINESS; RELIGION; CULTURE; NORMS;
D O I：
10.1016/j.irfa.2021.101995
中图分类号：
F8 [财政、金融];
学科分类号：
0202 ;
摘要：
This study examines the association between audit firm's Confucianism and stock price crash risk. We postulate that Confucian moral standards predict a mixed relationship between audit firm's Confucianism and stock price crash risk. Using a large sample of listed firms in China during 2006-2018, we find that audit firm's Confucianism is positively related with client's future stock price crash risk, implying that Confucianism of audit firm aggravates client's bad news hoarding behavior. The effect is more pronounced for client without female auditors and/ or with closer personal relationship with auditors. Mechanism analysis shows that audit firm's Confucianism exacerbates crash risk by worsening audit quality and information transparency. Political discipline and external monitoring help to alleviate the negative influence of audit firm's Confucianism on stock price crash risk.
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页数：19
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