Product-market competition, internal control quality and audit opinions. Evidence from Chinese listed firms
Based on data on listed firms in the Shanghai and Shenzhen A-share stock markets from 2007 to 2015, this study examines the relations among the quality of internal control, product-market competition and audit opinions. The empirical results reveal that (1) the better the quality of the internal con...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Universidad de Murcia
2020-01-01
|
| Series: | Revista de Contabilidad: Spanish Accounting Review |
| Subjects: | |
| Online Access: | https://revistas.um.es/rcsar/article/view/369111 |
| _version_ | 1811282068640890880 |
|---|---|
| author | Ling Zhang Wen Chen WUN HONG SU |
| author_facet | Ling Zhang Wen Chen WUN HONG SU |
| author_sort | Ling Zhang |
| collection | DOAJ |
| description | Based on data on listed firms in the Shanghai and Shenzhen A-share stock markets from 2007 to 2015, this study examines the relations among the quality of internal control, product-market competition and audit opinions. The empirical results reveal that (1) the better the quality of the internal control of listed firms is, the more likely a certified public accountant will be to issue a unmodified opinion; (2) the product-market competition is positively associated with unmodified opinions; (3) the product-market competition weakens the positive relation between the quality of the internal control of listed firms and the likelihood that a unmodified opinion will be issued by a certified public accountant; and (4) the significant impact of product-market competition on the relation between internal control quality and unmodified opinions exists only in non-monopoly industries. |
| first_indexed | 2024-04-13T01:44:56Z |
| format | Article |
| id | doaj.art-2a024e84a87c4cc7959f2a0865677ad9 |
| institution | Directory Open Access Journal |
| issn | 1138-4891 1988-4672 |
| language | English |
| last_indexed | 2024-04-13T01:44:56Z |
| publishDate | 2020-01-01 |
| publisher | Universidad de Murcia |
| record_format | Article |
| series | Revista de Contabilidad: Spanish Accounting Review |
| spelling | doaj.art-2a024e84a87c4cc7959f2a0865677ad92022-12-22T03:08:04ZengUniversidad de MurciaRevista de Contabilidad: Spanish Accounting Review1138-48911988-46722020-01-0123110.6018/rcsar.369111Product-market competition, internal control quality and audit opinions. Evidence from Chinese listed firmsLing Zhang0Wen Chen1WUN HONG SU2Shantou UniversityShantou UniversityHangzhou Dianzi UniversityBased on data on listed firms in the Shanghai and Shenzhen A-share stock markets from 2007 to 2015, this study examines the relations among the quality of internal control, product-market competition and audit opinions. The empirical results reveal that (1) the better the quality of the internal control of listed firms is, the more likely a certified public accountant will be to issue a unmodified opinion; (2) the product-market competition is positively associated with unmodified opinions; (3) the product-market competition weakens the positive relation between the quality of the internal control of listed firms and the likelihood that a unmodified opinion will be issued by a certified public accountant; and (4) the significant impact of product-market competition on the relation between internal control quality and unmodified opinions exists only in non-monopoly industries.https://revistas.um.es/rcsar/article/view/369111Quality of Internal ControlProduct-Market CompetitionAudit Opinions |
| spellingShingle | Ling Zhang Wen Chen WUN HONG SU Product-market competition, internal control quality and audit opinions. Evidence from Chinese listed firms Revista de Contabilidad: Spanish Accounting Review Quality of Internal Control Product-Market Competition Audit Opinions |
| title | Product-market competition, internal control quality and audit opinions. Evidence from Chinese listed firms |
| title_full | Product-market competition, internal control quality and audit opinions. Evidence from Chinese listed firms |
| title_fullStr | Product-market competition, internal control quality and audit opinions. Evidence from Chinese listed firms |
| title_full_unstemmed | Product-market competition, internal control quality and audit opinions. Evidence from Chinese listed firms |
| title_short | Product-market competition, internal control quality and audit opinions. Evidence from Chinese listed firms |
| title_sort | product market competition internal control quality and audit opinions evidence from chinese listed firms |
| topic | Quality of Internal Control Product-Market Competition Audit Opinions |
| url | https://revistas.um.es/rcsar/article/view/369111 |
| work_keys_str_mv | AT lingzhang productmarketcompetitioninternalcontrolqualityandauditopinionsevidencefromchineselistedfirms AT wenchen productmarketcompetitioninternalcontrolqualityandauditopinionsevidencefromchineselistedfirms AT wunhongsu productmarketcompetitioninternalcontrolqualityandauditopinionsevidencefromchineselistedfirms |