Business, Management and Accounting
3 years ago

Audit Quality Curbs Corporate Risks from Overinvestment, Especially for State-Owned Firms

2 views
E3S Web of Conferences
Research On The Relationship Among Over-investment, Audit Quality And Corporate Risk Of Listed Companies Based On Big Data——Based on the Empirical data of listed companies in China
Zhao Tiantian

Paper Summary

This study looked at how overspending, audit quality, and company risks are connected in Chinese listed companies using big data from 2014 to 2018. They found that overspending in businesses can lead to risks for the company. But having a high-quality external audit can help lower these risks. The research also showed that the effect of audit quality on reducing risks differs for companies with different property rights. Overall, the study highlights how monitoring overspending and having good quality audits can help decrease risks for Chinese companies.

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