IDEAS home Printed from https://ideas.repec.org/a/bla/ecopol/v37y2025i2p735-751.html
   My bibliography  Save this article

The Peer Effect of Key Audit Matter Disclosure: Evidence From China

Author

Listed:
  • Xuegang Cui
  • Jia Xu
  • Yiyuan Sun

Abstract

This study examines whether the disclosure of the Key Audit Matters (KAMs) has a peer effect within an industry. Using a sample of China‐listed firms from 2017 to 2022, we find a significant industry‐specific peer effect in the KAM disclosure behavior, which remains consistent across various robustness tests. The peer effect of the KAM disclosure is more substantial when corporate market competition is more fierce. Specifically, the cut‐throat competition leads to higher auditing risk for auditors who have to alleviate the risk by imitating the KAM disclosure behavior of their peers within the same industry, thereby leading to a peer effect in KAM disclosure. Heterogeneity analysis exhibits that the extent of peer effect in the KAM disclosure varies among corporate ownership structure, auditor expertise, and media coverage. This study contributes to the literature on the KAM disclosure and offers important policy implications for auditing standard construction and regulation on KAM disclosure.

Suggested Citation

  • Xuegang Cui & Jia Xu & Yiyuan Sun, 2025. "The Peer Effect of Key Audit Matter Disclosure: Evidence From China," Economics and Politics, Wiley Blackwell, vol. 37(2), pages 735-751, July.
    • Handle: RePEc:bla:ecopol:v:37:y:2025:i:2:p:735-751
    DOI: 10.1111/ecpo.12340
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/ecpo.12340
    Download Restriction: no
    File URL: https://libkey.io/10.1111/ecpo.12340?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:ecopol:v:37:y:2025:i:2:p:735-751. 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: http://www.blackwellpublishing.com/journal.asp?ref=0954-1985 .

    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.