volume 35, issue 4, P575-595 2019
DOI: 10.1108/maj-02-2019-2179
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Qiang Cao, Nanwei Hu, Lizhong Hao

Abstract: Purpose The purpose of this paper is to examine whether client industry importance affects auditor independence. Design/methodology/approach This study analyzes audit firm merger data from China Stock Market and Accounting Research and uses a difference-in-difference model to find whether client industry importance is associated with auditor independence. This study uses discretionary accruals and propensity to issue modified audit opinions as proxies for auditor independence. Findings Results show that t…

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