IDEAS home Printed from https://ideas.repec.org/a/eee/riibaf/v71y2024ics0275531924002952.html
   My bibliography  Save this article

Administrative audit regulation and the quality of accounting information: Evidence from China securities regulatory commission’s random inspection system

Author

Listed:
  • Chen, Hui
  • Zhuang, Wanting
  • Wang, Zijia
  • Zhou, Anzhe

Abstract

Based on the “double random” inspection system implemented by the China Securities Regulatory Commission (CSRC) on accounting firms, our study uses staggered DID method to examine the effect of administrative audit regulation on the quality of corporate accounting information. The results suggest: (1) The administrative audit regulation can effectively improve corporate accounting information quality; (2) The mechanism test reveals that the administrative audit regulation improves the quality of accounting information by improving internal control; (3) Further study reveals that the governance effect of the administrative audit regulation is more pronounced for firms with non-Big four auditing, high risk of misstatement and more agency costs. Our study investigates the governance effect of the CSRC’s random inspection system on the quality of corporate accounting information, providing theoretical and empirical evidence for the effectiveness of administrative audit supervision from the perspective of corporate accounting information system.

Suggested Citation

  • Chen, Hui & Zhuang, Wanting & Wang, Zijia & Zhou, Anzhe, 2024. "Administrative audit regulation and the quality of accounting information: Evidence from China securities regulatory commission’s random inspection system," Research in International Business and Finance, Elsevier, vol. 71(C).
    • Handle: RePEc:eee:riibaf:v:71:y:2024:i:c:s0275531924002952
    DOI: 10.1016/j.ribaf.2024.102502
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0275531924002952
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ribaf.2024.102502?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
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Sun, Zhennan & Du, Qunyang & Du, Anna Min & Li, Zhongyuan & Yang, Tianle, 2024. "The information environment and ecological environment perspectives: Capital market openness and firm ESG rating divergence," Research in International Business and Finance, Elsevier, vol. 71(C).
    2. Chen, Wenchuan & Liu, Yu & Liu, Siyi & Chen, Yugang & Zhang, Pengdong, 2024. "The governance effects of social media engagement on M&A outcomes: Evidence from China," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 91(C).
    3. Chen, Han & Deng, Jianping & Lu, Meiting & Zhang, Pengdong & Zhang, Qihao, 2024. "Government environmental attention, credit supply and firms' green investment," Energy Economics, Elsevier, vol. 134(C).
    4. Chen, Sicen & Liu, Siyi & Zhang, Junsheng & Zhang, Pengdong, 2023. "The effect of extreme rainfall on corporate financing policies," Journal of Economic Behavior & Organization, Elsevier, vol. 216(C), pages 670-685.
    5. Tang, Xudong & Jia, Yang & Li, Rui, 2024. "Common institutional ownership types and corporate innovation: A taxonomy based on whether the investees are in the same industry," Pacific-Basin Finance Journal, Elsevier, vol. 86(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Lirong & Mu, Ruirui & Dai, Yanwen & Huang, Xuanhao, 2024. "Private enterprise identity and short-term debt for long-term investment: Evidence from China," Finance Research Letters, Elsevier, vol. 67(PB).
    2. Hu, Liang & Chen, Shishuo, 2024. "Artificial intelligence innovation and corporate environmental investment: A contingent view," Finance Research Letters, Elsevier, vol. 69(PB).
    3. Wang, Jiaxin & Guo, Xu & Sun, Di & Huang, Rui, 2024. "Alcohol culture and employee treatment," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    4. Wu, Yanjun & Chen, Wenchuan & Yan, Han, 2024. "The accountability system for operation and investment and audit quality of state-owned enterprises," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    5. Wang, Jiaxin & Huang, Xiang & Xu, Rui & Huang, Rui, 2024. "Green spillover effect of human capital growth—Evidence from the PM enrollment expansion," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    6. Zhang, Dongyang & Bai, Dingchuan & Wang, Yizhi, 2024. "Green vs. brown: Climate risk showdown – who’s thriving, who’s diving?," Journal of International Money and Finance, Elsevier, vol. 149(C).
    7. Fan, Zhangmei & Chen, Ying & Mo, Yifan, 2024. "Management myopia and corporate ESG performance," International Review of Financial Analysis, Elsevier, vol. 92(C).
    8. Wang, Jiaxin & Zhao, Mu & Huang, Xiang & Song, Zilong & Sun, Di, 2024. "Supply chain diffusion mechanisms for AI applications: A perspective on audit pricing," International Review of Financial Analysis, Elsevier, vol. 93(C).
    9. Zhang, Dongyang & Bai, Dingchuan & He, Yurun & Sun, Qiaobing, 2024. "Synergistic abatement effects of Broadband China and environmental regulation: Firm-level evidence," International Review of Financial Analysis, Elsevier, vol. 96(PB).
    10. Lee, Chien-Chiang & Wang, Chih-Wei & Liu, Fengyun, 2024. "Does green credit promote the performance of new energy companies and how? The role of R&D investment and financial development," Renewable Energy, Elsevier, vol. 235(C).
    11. Chuyao Deng & Wenliang Peng & Zhenjiang Dou & Qidi Zhang, 2024. "Environmental Background Directors and ESG Performance: A Perspective on Green Governance," Sustainability, MDPI, vol. 16(23), pages 1-22, December.
    12. Yi Sun & Yiwen Zhu & Cong Li & Kaihua Wang, 2025. "Will Green Credit Affect the Cash Flow of Heavily Polluting Enterprises?," Sustainability, MDPI, vol. 17(1), pages 1-24, January.
    13. Chen, Han & Deng, Jianping & Lu, Meiting & Zhang, Pengdong & Zhang, Qihao, 2024. "Government environmental attention, credit supply and firms' green investment," Energy Economics, Elsevier, vol. 134(C).
    14. Zhang, Dongyang, 2024. "From ban to balance: How agricultural climate policies reshape rural asset allocation?," Journal of International Money and Finance, Elsevier, vol. 149(C).
    15. Wang, Jiaxin & Huang, Xiang & Liu, Chengxin & Sun, Di & Song, Zilong, 2024. "Political risk of green public procurement and firms' green innovation," Finance Research Letters, Elsevier, vol. 62(PB).
    16. Cheng, Louis T.W. & Cheong, Tsun Se & Wojewodzki, Michal & Chui, David, 2025. "The effect of ESG divergence on the financial performance of Hong Kong-listed firms: An artificial neural network approach," Research in International Business and Finance, Elsevier, vol. 73(PA).
    17. Lai, Jinming & Ke, Jinjun & Lin, Shuping & Zhang, Pengdong & Zhang, Qihao, 2024. "Business environment optimization and labor income share of enterprises: Evidence from China," Research in International Business and Finance, Elsevier, vol. 71(C).
    18. Guo, Minjia & Chen, Ximing & Wang, Tianqi & Cao, Jie, 2024. "Financial literacy and the household participation in commercial insurance: Evidence from China," Research in International Business and Finance, Elsevier, vol. 71(C).
    19. Min Du, Anna & Lu, Mengyuan & Zhang, Yiyan & Li, Zhongyuan, 2025. "Confucian culture and corporate environmental management: The role of innovation, financing constraints and managerial myopia," Research in International Business and Finance, Elsevier, vol. 73(PA).
    20. Wang, Jiaxin & Huang, Xiang & Sun, Di & Xu, Rui, 2024. "Government department merger, perception of administrative barriers, and corporate investment: Evidence from China's state administration for market regulation," Finance Research Letters, Elsevier, vol. 67(PA).

    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:eee:riibaf:v:71:y:2024:i:c:s0275531924002952. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .

    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.