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How does national audit affect enterprises' operating efficiency?

Author

Listed:
  • Liu, Yongtao
  • Li, Ruofan
  • Wu, Guanzheng

Abstract

National audits are a fundamental institutional mechanism connecting regulatory scrutiny with organizational productivity. This study demonstrates that state-mandated audits consistently improve operational efficiency via two mechanisms: increasing information openness to align stakeholder incentives and strengthening internal governance to eliminate resource misallocation. Audits transform compliance demands into strategic advantages, prompting firms to implement standardized reporting, enhance decision-making structures, and institutionalize innovation-oriented procedures. The findings reframe audits beyond regulatory compliance, establishing them as drivers of market-wide efficiency alignment. The research highlights scalable frameworks for policymakers to connect corporate conduct with macroeconomic aims, especially in emerging economies facing governance deficiencies. Organizations acquire meaningful insights to convert audit compliance into operational resilience, utilizing transparency as a competitive advantage and governance rigor as a catalyst for long-term value generation. This work reconceptualizes national audits as fundamental to sustainable economic systems, where institutional monitoring and business flexibility intersect to enhance productivity limits.

Suggested Citation

  • Liu, Yongtao & Li, Ruofan & Wu, Guanzheng, 2025. "How does national audit affect enterprises' operating efficiency?," Finance Research Letters, Elsevier, vol. 85(PC).
  • Handle: RePEc:eee:finlet:v:85:y:2025:i:pc:s1544612325013236
    DOI: 10.1016/j.frl.2025.108065
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