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.
|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
|Conference||41st Annual Congress of the European Accounting Association|
|Abbreviated title||EAA 2018|
|Period||30/05/18 → 1/06/18|