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The impact of corporate governance and external audit on compliance to mandatory disclosure requirements in China

The impact of corporate governance and external audit on compliance to mandatory disclosure requirements in China
The impact of corporate governance and external audit on compliance to mandatory disclosure requirements in China
The Chinese government has tried to improve corporate governance and the quality of external audits. To assess the effect of these regulatory changes, we quantify the impact of corporate governance and external audits on compliance to mandatory disclosure requirements. Our study uses a direct measure of compliance published by the Shenzhen Stock Exchange (SZSE) from 2001 to 2007. Our findings show that auditor opinions increase the compliance to mandatory disclosure requirements. Based on factor analysis, we also find that improved internal governance led to higher compliance to disclosure requirements. The external governance environment, measured by the degree of institutional development, had a positive effect on firms’ compliance to disclosure requirements
1061-9518
17-31
Gao, Lei
885f6f80-3796-4bdb-b75d-7c8905b6b5de
Kling, Gerhard
feea1f9e-c49a-4d9c-b688-ec839cef9624
Gao, Lei
885f6f80-3796-4bdb-b75d-7c8905b6b5de
Kling, Gerhard
feea1f9e-c49a-4d9c-b688-ec839cef9624

Gao, Lei and Kling, Gerhard (2012) The impact of corporate governance and external audit on compliance to mandatory disclosure requirements in China. Journal of International Accounting, Auditing and Taxation, 21 (1), 17-31. (doi:10.1016/j.intaccaudtax.2012.01.002).

Record type: Article

Abstract

The Chinese government has tried to improve corporate governance and the quality of external audits. To assess the effect of these regulatory changes, we quantify the impact of corporate governance and external audits on compliance to mandatory disclosure requirements. Our study uses a direct measure of compliance published by the Shenzhen Stock Exchange (SZSE) from 2001 to 2007. Our findings show that auditor opinions increase the compliance to mandatory disclosure requirements. Based on factor analysis, we also find that improved internal governance led to higher compliance to disclosure requirements. The external governance environment, measured by the degree of institutional development, had a positive effect on firms’ compliance to disclosure requirements

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Published date: 2012
Organisations: Centre for Digital, Interactive & Data Driven Marketing

Identifiers

Local EPrints ID: 347162
URI: http://eprints.soton.ac.uk/id/eprint/347162
ISSN: 1061-9518
PURE UUID: b67e3a8f-a0a8-4b4e-b0d7-c6e19775c04e

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Date deposited: 18 Jan 2013 09:33
Last modified: 14 Mar 2024 12:45

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Contributors

Author: Lei Gao
Author: Gerhard Kling

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