 Does rice farming shape audit quality: Evidence from signing auditors level analysisHao Xiong, Fei Hou, Hanwen Li and Huabing Wang Economic Modelling, 2020, vol. 91, issue C, 403-420 Abstract: This study examines whether signing auditors from rice planting regions affect audit quality. Using a sample of 12,223 firm-year observations from the Chinese stock market over the period of 2004–2015, our findings reveal that signing auditors from rice regions are significantly negatively associated with the likelihood of unclean audit opinions, suggesting that signing auditors with rice culture are more likely to succumb to the managers and hamper independence, and thus are more inclined to issue favorable audit opinions, and eventually impair audit quality. Furthermore, audit firm size and industry expertise attenuate the negative relation between signing auditors with rice culture and audit quality. In addition, above findings are robust to a variety of sensitivity tests using different measures of audit quality and signing auditors from rice cultivating areas and our conclusions still stand after using the Heckman two-step approach, placebo test and differences-in-differences method to address the potential endogeneity problem. Keywords: Signing auditors; Rice planting regions; Audit firm size; Audit firm industry specialization; Audit quality (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:91:y:2020:i:c:p:403-420 DOI: 10.1016/j.econmod.2020.06.013 Access Statistics for this article Economic Modelling is currently edited by S. Hall and P. Pauly More articles in Economic Modelling from Elsevier |
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