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Foreign experience and audit report lag

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  • Shahab, Yasir
  • Tianzi, Wang
  • Hussain, Tanveer
  • Kumar, Satish

Abstract

We examine the impact of top management teams (TMTs) foreign experience on audit report lag. We employ a unique sample of Chinese A-share listed firms from 2012 to 2021 and find that the overseas experience (returnee's effect) has a significant positive effect on the audit report lag. We argue that compared with locals, returnees have better education and international experience but often lack local ties and discernment in their native country, which leads to increased audit report lag. We also find that corporate innovation is a potential channel through which overseas experience positively affects audit report lag.

Suggested Citation

  • Shahab, Yasir & Tianzi, Wang & Hussain, Tanveer & Kumar, Satish, 2023. "Foreign experience and audit report lag," Finance Research Letters, Elsevier, vol. 57(C).
    • Handle: RePEc:eee:finlet:v:57:y:2023:i:c:s1544612323006116
    DOI: 10.1016/j.frl.2023.104239
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