The power of belief: party organization construction of accounting firms and audit quality
We examine the impact of party organisation construction of accounting firms on audit quality. We find that although there is no relationship between the party membership status of auditors and audit quality, the audit quality of party-member auditors significantly improves after accounting firms st...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2022-06-01
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| Series: | China Journal of Accounting Studies |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/21697213.2022.2078271 |
| _version_ | 1811236661932064768 |
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| author | Changli Zeng Jiangtao Li Haoran Xu Mian Zhang |
| author_facet | Changli Zeng Jiangtao Li Haoran Xu Mian Zhang |
| author_sort | Changli Zeng |
| collection | DOAJ |
| description | We examine the impact of party organisation construction of accounting firms on audit quality. We find that although there is no relationship between the party membership status of auditors and audit quality, the audit quality of party-member auditors significantly improves after accounting firms strengthen party organisation construction. Additional analyses show that the positive impact of auditor party membership on audit quality does not generate a contagious effect in the presence of party organisation construction. Moreover, cross-section results show that the impact of party organisation construction on audit quality is more pronounced in Non-Big4 audit firms, and in audit firms having a higher proportion of party-member partners/employees. Finally, we find that party organisation construction of accounting firms plays a more significant role in improving audit quality in state-owned firms. We believe our paper to be the first to investigate the governance role of party organisation construction in accounting firms. |
| first_indexed | 2024-04-12T12:11:49Z |
| format | Article |
| id | doaj.art-e78b6976ad83474497a61e3efc868e8d |
| institution | Directory Open Access Journal |
| issn | 2169-7213 2169-7221 |
| language | English |
| last_indexed | 2024-04-12T12:11:49Z |
| publishDate | 2022-06-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | China Journal of Accounting Studies |
| spelling | doaj.art-e78b6976ad83474497a61e3efc868e8d2022-12-22T03:33:33ZengTaylor & Francis GroupChina Journal of Accounting Studies2169-72132169-72212022-06-0113610.1080/21697213.2022.2078271The power of belief: party organization construction of accounting firms and audit qualityChangli Zeng0Jiangtao Li1Haoran Xu2Mian Zhang3School of Accounting, Southwestern University of Finance and Economics, Chengdu, Sichuan, ChinaSchool of Accounting, Southwestern University of Finance and Economics, Chengdu, Sichuan, ChinaSchool of Accounting, DongBei University of Finance and Economics/China Internal Control Research Center, Dalian, Liaoning, ChinaSchool of Finance and Economics, Anhui Science and Technology University, Chuzhou, Anhui, ChinaWe examine the impact of party organisation construction of accounting firms on audit quality. We find that although there is no relationship between the party membership status of auditors and audit quality, the audit quality of party-member auditors significantly improves after accounting firms strengthen party organisation construction. Additional analyses show that the positive impact of auditor party membership on audit quality does not generate a contagious effect in the presence of party organisation construction. Moreover, cross-section results show that the impact of party organisation construction on audit quality is more pronounced in Non-Big4 audit firms, and in audit firms having a higher proportion of party-member partners/employees. Finally, we find that party organisation construction of accounting firms plays a more significant role in improving audit quality in state-owned firms. We believe our paper to be the first to investigate the governance role of party organisation construction in accounting firms.https://www.tandfonline.com/doi/10.1080/21697213.2022.2078271Party organisation construction of accounting firmspolitical beliefsaudit qualitycontagious effect |
| spellingShingle | Changli Zeng Jiangtao Li Haoran Xu Mian Zhang The power of belief: party organization construction of accounting firms and audit quality China Journal of Accounting Studies Party organisation construction of accounting firms political beliefs audit quality contagious effect |
| title | The power of belief: party organization construction of accounting firms and audit quality |
| title_full | The power of belief: party organization construction of accounting firms and audit quality |
| title_fullStr | The power of belief: party organization construction of accounting firms and audit quality |
| title_full_unstemmed | The power of belief: party organization construction of accounting firms and audit quality |
| title_short | The power of belief: party organization construction of accounting firms and audit quality |
| title_sort | power of belief party organization construction of accounting firms and audit quality |
| topic | Party organisation construction of accounting firms political beliefs audit quality contagious effect |
| url | https://www.tandfonline.com/doi/10.1080/21697213.2022.2078271 |
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