Impact of Sharing Auditors with Related Party on the Time-liness of Financial Report

Abstract

With the development of sharing economy, shared auditors have become the penetration and embodiment of the shared economic model in the audit market. This paper takes the A-share listed companies in Shanghai and Shenzhen stock markets from 2009 to 2016 as a sample, and empirically examines the impact of shared auditors of related party on the timeliness of financial report. The study finds that the impact of related party sharing auditors on the timeliness of financial report is not significant in the full sample. The role of shared auditors of related parties is affected by audit firms size and the nature of companies. The shared auditors from Big-4 audit firms and shared auditors of private enterprises have a significant positive effect on the timeliness of financial report. The conclusion provides empirical evidence for the effect of shared auditors of related party and policy enlightenment for improving audit quality and corporate governance.