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Do Executives with IT Backgrounds Influence the Selection of Corporate Auditors in the Context of Digital Innovation?—An Examination from a Sustainability Perspective

Author

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  • Jia Liu

    (Business School, Qingdao University of Technology, Qingdao 266520, China)

  • Jingyao Li

    (Business School, Qingdao University of Technology, Qingdao 266520, China)

  • Shuwei Wang

    (College of Economics & Management, Shandong University of Science and Technology, Qingdao 266590, China)

Abstract

Digital innovation is the core driving force to enhance the competitiveness of enterprises and promote sustainable development, and is a key enabler for achieving corporate ability goals. Executives with information technology (IT) backgrounds who have rich knowledge and skills in digital technology are the backbone of promoting the digital transformation of enterprises and optimizing the allocation of auditing resources. And they can lay the technological foundation for sustainable corporate development and play an important role in corporate audit decision-making. Based on the data of China’s A-share listed companies from 2015 to 2023, the impact of executives with IT backgrounds on auditor selection is empirically analyzed. The study shows that (1) the higher the proportion of executives with IT backgrounds in the executive team, the more the companies tend to choose high-quality auditors; (2) the degree of corporate digital innovation positively moderates the relationship between executives with an IT background and high-quality auditors; (3) the level of corporate internal control plays a mediating effect in the relationship between executives with an IT background and auditor selection; (4) for non-state-owned, large-scale, short executive tenures, and labor-intensive firms, executives with IT backgrounds exert a more significant influence on auditor selection. This study broadens previous research on corporate auditing behaviors from the perspective of executives with IT backgrounds, providing insights for companies to select suitable auditors, to make scientifically sound decisions regarding auditor selection in the context of digital innovation, further optimize internal management, enhance risk response capabilities, and thereby achieve sustainable corporate development.

Suggested Citation

  • Jia Liu & Jingyao Li & Shuwei Wang, 2025. "Do Executives with IT Backgrounds Influence the Selection of Corporate Auditors in the Context of Digital Innovation?—An Examination from a Sustainability Perspective," Sustainability, MDPI, vol. 17(19), pages 1-19, October.
  • Handle: RePEc:gam:jsusta:v:17:y:2025:i:19:p:8911-:d:1766572
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    References listed on IDEAS

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