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CFOs’ audit experience and corporate disclosure quality: evidence from China

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  • Piao Li
  • Chang Song
  • Jenny Jing Wang
  • Hongrui Zheng

Abstract

This paper examines the effect of the prior audit experience of chief financial officers (CFOs) on corporate information disclosure. Utilising a sample of 25,480 firm‐annual observations of A‐share Chinese listed companies over the period 2007–2019, we find that CFOs with audit experience improve the quality of corporate information disclosure. We also find that Big 4 auditor CFOs have a more positive influence on corporate information. Finally, we find that the power of CEOs influences the effect of CFOs’ audit experience on corporate disclosure quality. This study contributes to the selection of CFOs by listed companies with the aim to improve corporate governance mechanisms.

Suggested Citation

  • Piao Li & Chang Song & Jenny Jing Wang & Hongrui Zheng, 2022. "CFOs’ audit experience and corporate disclosure quality: evidence from China," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(3), pages 4013-4039, September.
    • Handle: RePEc:bla:acctfi:v:62:y:2022:i:3:p:4013-4039
    DOI: 10.1111/acfi.12914
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    References listed on IDEAS

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    1. Huang, Huiqin & Wang, Chenglong & Yu, Wei & Zhu, Keying, 2023. "Does powerful executive holding a dual post as the board secretary reduce nonpunitive regulation?," International Review of Financial Analysis, Elsevier, vol. 89(C).

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