Corporate social responsibility in accounting firms and audit quality " evidence from China

Xingqiang DU; Narisa Tianjing DAI; Xuejiao LIU; Michael FIRTH

Corporate social responsibility in accounting firms and audit quality " evidence from China

Xingqiang DU, Narisa Tianjing DAI, Xuejiao LIU, Michael FIRTH

Lingnan University

Research output: Other Conference Contributions › Conference Paper (other) › Other Conference Paper › peer-review

Abstract

This paper explores the empirical association between corporate social responsibility (CSR) in accounting firms and audit quality by drawing upon a three-year (2010–2012) proprietary database on the CSR activities of accounting firms in China. We find that accounting firms with higher levels of CSR achieve greater audit quality. We also find that the relationship between CSR and audit quality is more pronounced in accounting firms that spend more on training and have lower employee turnover. To the extent that we control for confounding factors and potential endogeneity concerns, our results suggest that that socially responsible accounting firms are driven by their ethical concerns to achieve higher audit quality.

Original language	English
Publication status	Published - 1 Jun 2018
Event	41st Annual Congress of the European Accounting Association - Bocconi University, Milano, Italy Duration: 30 May 2018 → 1 Jun 2018 http://eaa2018.eaacongress.org/r/home

Conference

Conference	41st Annual Congress of the European Accounting Association
Abbreviated title	EAA 2018
Country/Territory	Italy
City	Milano
Period	30/05/18 → 1/06/18
Internet address	http://eaa2018.eaacongress.org/r/home

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Cite this

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title = "Corporate social responsibility in accounting firms and audit quality {"} evidence from China",

abstract = "This paper explores the empirical association between corporate social responsibility (CSR) in accounting firms and audit quality by drawing upon a three-year (2010–2012) proprietary database on the CSR activities of accounting firms in China. We find that accounting firms with higher levels of CSR achieve greater audit quality. We also find that the relationship between CSR and audit quality is more pronounced in accounting firms that spend more on training and have lower employee turnover. To the extent that we control for confounding factors and potential endogeneity concerns, our results suggest that that socially responsible accounting firms are driven by their ethical concerns to achieve higher audit quality.",

author = "Xingqiang DU and DAI, {Narisa Tianjing} and Xuejiao LIU and Michael FIRTH",

year = "2018",

month = jun,

day = "1",

language = "English",

note = "41st Annual Congress of the European Accounting Association, EAA 2018 ; Conference date: 30-05-2018 Through 01-06-2018",

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Corporate social responsibility in accounting firms and audit quality " evidence from China. / DU, Xingqiang; DAI, Narisa Tianjing; LIU, Xuejiao et al.
2018. Paper presented at 41st Annual Congress of the European Accounting Association, Milano, Italy.

Research output: Other Conference Contributions › Conference Paper (other) › Other Conference Paper › peer-review

TY - CONF

T1 - Corporate social responsibility in accounting firms and audit quality " evidence from China

AU - DU, Xingqiang

AU - DAI, Narisa Tianjing

AU - LIU, Xuejiao

AU - FIRTH, Michael

PY - 2018/6/1

Y1 - 2018/6/1

N2 - This paper explores the empirical association between corporate social responsibility (CSR) in accounting firms and audit quality by drawing upon a three-year (2010–2012) proprietary database on the CSR activities of accounting firms in China. We find that accounting firms with higher levels of CSR achieve greater audit quality. We also find that the relationship between CSR and audit quality is more pronounced in accounting firms that spend more on training and have lower employee turnover. To the extent that we control for confounding factors and potential endogeneity concerns, our results suggest that that socially responsible accounting firms are driven by their ethical concerns to achieve higher audit quality.

AB - This paper explores the empirical association between corporate social responsibility (CSR) in accounting firms and audit quality by drawing upon a three-year (2010–2012) proprietary database on the CSR activities of accounting firms in China. We find that accounting firms with higher levels of CSR achieve greater audit quality. We also find that the relationship between CSR and audit quality is more pronounced in accounting firms that spend more on training and have lower employee turnover. To the extent that we control for confounding factors and potential endogeneity concerns, our results suggest that that socially responsible accounting firms are driven by their ethical concerns to achieve higher audit quality.

M3 - Conference Paper (other)

T2 - 41st Annual Congress of the European Accounting Association

Y2 - 30 May 2018 through 1 June 2018

ER -