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Legal background of corporate management and corporate audit quality

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  • Liang, Yanyan
  • Zhang, Shuo

Abstract

This study examines how executives’ legal backgrounds impact audit quality in the A-share markets of Shanghai and Shenzhen, focusing on non-financial listed companies. Findings show that having legal expertise among executives significantly improves audit quality. Robustness tests support these findings, and further analysis reveals that this effect varies depending on the company's ownership structure and its internal controls’ quality. Notably, the positive effect is more pronounced in private companies and those with lax internal controls.

Suggested Citation

  • Liang, Yanyan & Zhang, Shuo, 2025. "Legal background of corporate management and corporate audit quality," Finance Research Letters, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:finlet:v:73:y:2025:i:c:s1544612324016933
    DOI: 10.1016/j.frl.2024.106664
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    References listed on IDEAS

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