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The Impact of Chain Leader System on Corporate Audit Quality - A Study Based on Audit Subject-Object Perspective

Author(s)

Ziyue Wang

Affiliation(s)

University of International Business and Economics, Beijing, China,

Abstract

As a new policy of industrial chain governance, the chain length system policy is of great significance to improve the industrial environment and enhance the resilience of the industrial chain. However, its role mechanism and specific effects on the micro behavior of enterprises have not yet been deeply explored. This paper takes China's A-share listed companies from 2012 to 2022 as the research object, based on the data of the chain length system policy at the prefecture-level city level, and empirically examines the effect of the chain length system policy on the audit quality of the enterprises and its mechanism by using the multi-period double-difference model. It is found that the implementation of the chain leader system policy can improve the quality of corporate auditing, which is mainly realized through the paths of promoting the digital transformation of enterprises, suppressing the rent-seeking behavior of enterprises, and improving the intensity of competition in the product market. Heterogeneity analysis shows that the chain-length policy has a more significant effect on improving the audit quality of non-state-owned enterprises, non-Big Four audits, manufacturing industries and enterprises in the Middle East. This paper reveals the micro effects of the chain-length system policy from the perspective of accounting information quality, and provides a reference for improving the policy design.

Keywords

Chain Length System; Audit Quality; Industrial Policy

References

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