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From Site Visits to Swift Audits: The Influence of Institutional Investors

Author

Listed:
  • Baibing Huang

    (Macau University of Science and Technology)

  • Shaohua Tian

    (Macao Polytechnic University)

  • Yang Zhang

    (University of Macau)

  • Huanhuan Zheng

    (National University of Singapore)

Abstract

This paper investigates the influence of institutional investors' corporate site visits on the timeliness of financial reporting. Utilizing data from publicly traded firms listed in the Shenzhen Stock Exchange (SZSE) in China, the study reveals that companies that receive a greater number of site visits from institutional investors exhibit shorter delays in the issuance of audit reports. These findings remain robust even after conducting various robustness checks and employing alternative estimation methods to address potential endogeneity concerns. Additionally, supplementary analysis suggests that institutional investors' site visits may enhance financial statement timeliness by facilitating more efficient acquisition of information and promoting enhanced corporate governance practices. Moreover, the study finds that institutional investors' site visits contribute to the timely disclosure of audit reports without compromising their quality. These significant findings hold important implications for firms, investors, and policymakers.

Suggested Citation

  • Baibing Huang & Shaohua Tian & Yang Zhang & Huanhuan Zheng, 2025. "From Site Visits to Swift Audits: The Influence of Institutional Investors," Working Papers 202533, University of Macau, Faculty of Business Administration.
    • Handle: RePEc:boa:wpaper:202533
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Corporate site visits; financial statement timeliness; Audit report lag; Institutional investors; Chinese listed firms;
    All these keywords.

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