The Relation between Auditor Characteristics and Client Investment Efficiency：Evidence from China

• Main Authors: Liu, Lei Li, 劉磊莉
• Other Authors: 金成隆
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/rwr234

碩士 === 國立政治大學 === 會計學系 === 106 === The objective of this thesis is to examine whether the auditors affect the investment efficiency of its client. Using a sample of Chinese listed firms during 2007~2016, I find that: (1) Audit-firm-level industry expert is positively associated with its clients’ investment efficiency. (2) Industry expert at both firm and partner levels has stronger effect on investment efficiency than industry expert, either at firm-level alone, or at partner level alone. (3) When auditors are industry expert at both firm and partner levels, the effect of industry expertise on investment efficiency is more pronounced for non-state-owned enterprises than state-owned enterprises. In sum, auditors play a critical role in enhancing firm’s investment efficient.