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

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

Research output: Other Conference ContributionsConference Paper (other)Other Conference Paperpeer-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 languageEnglish
Publication statusPublished - 1 Jun 2018
Event41st Annual Congress of the European Accounting Association - Bocconi University, Milano, Italy
Duration: 30 May 20181 Jun 2018
http://eaa2018.eaacongress.org/r/home

Conference

Conference41st Annual Congress of the European Accounting Association
Abbreviated titleEAA 2018
CountryItaly
CityMilano
Period30/05/181/06/18
Internet address

Fingerprint

China
Audit quality
Corporate Social Responsibility
Accounting firms
Employee turnover
Social audit
Confounding
Factors
Endogeneity
Data base

Cite this

DU, X., DAI, N. T., LIU, X., & FIRTH, M. (2018). Corporate social responsibility in accounting firms and audit quality " evidence from China. Paper presented at 41st Annual Congress of the European Accounting Association, Milano, Italy.
DU, Xingqiang ; DAI, Narisa Tianjing ; LIU, Xuejiao ; FIRTH, Michael. / Corporate social responsibility in accounting firms and audit quality " evidence from China. Paper presented at 41st Annual Congress of the European Accounting Association, Milano, Italy.
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DU, X, DAI, NT, LIU, X & FIRTH, M 2018, 'Corporate social responsibility in accounting firms and audit quality " evidence from China' Paper presented at 41st Annual Congress of the European Accounting Association, Milano, Italy, 30/05/18 - 1/06/18, .

Corporate social responsibility in accounting firms and audit quality " evidence from China. / DU, Xingqiang; DAI, Narisa Tianjing; LIU, Xuejiao; FIRTH, Michael.

2018. Paper presented at 41st Annual Congress of the European Accounting Association, Milano, Italy.

Research output: Other Conference ContributionsConference Paper (other)Other Conference Paperpeer-review

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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

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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)

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DU X, DAI NT, LIU X, FIRTH M. Corporate social responsibility in accounting firms and audit quality " evidence from China. 2018. Paper presented at 41st Annual Congress of the European Accounting Association, Milano, Italy.