IDEAS home Printed from https://ideas.repec.org/a/bla/acctfi/v65y2025i4p3310-3346.html

How Auditors Respond to Resignations of Supervisory Board Members

Author

Listed:
  • Xinming Liu
  • Xiaoqiao Zhu

Abstract

Using manually verified supervisory board (hereafter, SB) resignation data from China spanning the period 2009–2020, our study finds a positive relationship between audit fees and SB resignations. Additionally, the positive relationship between audit fees and SB resignations is amplified when resignations signal a heightened level of monitoring risk, as reflected in the characteristics of the resigning SB members, the successors and the firm. Mechanism analysis supports the Risk Signal Mechanism, highlighting the role of SB members in monitoring and accessing risk‐related information prior to resignations. Lastly, auditors are less likely to issue clean audit opinions following SB resignations.

Suggested Citation

  • Xinming Liu & Xiaoqiao Zhu, 2025. "How Auditors Respond to Resignations of Supervisory Board Members," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 65(4), pages 3310-3346, December.
    • Handle: RePEc:bla:acctfi:v:65:y:2025:i:4:p:3310-3346
    DOI: 10.1111/acfi.70041
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/acfi.70041
    Download Restriction: no
    File URL: https://libkey.io/10.1111/acfi.70041?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:acctfi:v:65:y:2025:i:4:p:3310-3346. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/aaanzea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.