IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

The Effects of Management Demography on Auditor Choice and Earnings Quality: Evidence from China

Listed author(s):
  • Louis T. W. Cheng


    (School of Accounting and Finance, Hong Kong Polytechnic University, Office M822, Li Ka Shing Tower, Hong Kong)

  • T. Y. Leung


    (Department of Accountancy, City University of Hong Kong, Hong Kong)

Registered author(s):

    Recent management literature shows that demographic characteristics of top management and corporate performance are related. Bamber et al. (2010) conclude that managers' voluntary disclosure styles are related to demographic characteristics. Also, Francis et al. (2008) demonstrate a negative relation between CEO reputation and earnings quality. We conjecture that, management demography affects auditor choice and earnings quality. Using a sample of 3,881 firm-year observations between 2001 and 2005 in China and controlling for board governance characteristics, we find that a chairperson with better reputation (i.e., holding titles) prefers well-known auditors on the national basis, regional basis and in the industry group. Furthermore, chairpersons with titles and longer tenure report earnings of higher quality. Our results are robust using different measures of auditor choice and earnings quality.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Review of Pacific Basin Financial Markets and Policies.

    Volume (Year): 15 (2012)
    Issue (Month): 02 ()
    Pages: 1-37

    in new window

    Handle: RePEc:wsi:rpbfmp:v:15:y:2012:i:02:p:1150009-1-1150009-37
    Contact details of provider: Web page:

    Order Information: Email:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:wsi:rpbfmp:v:15:y:2012:i:02:p:1150009-1-1150009-37. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim)

    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 references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.