Using data of Chinese A-share non-financial listed companies spanning years 2003–2018, we examine whether a firm’s business strategy that deviates from industry conventions influences corporate governance mechanisms, particularly the probability of choosing high-quality external auditors. We...

This study examines the relationship between the mandatory disclosure of auditor tenure under AS 3101 and the cost of debt. We find that yield spreads on seasoned bond trades decrease after AS 3101 as auditor tenure increases. Cross-sectional tests suggest that the effect is stronger for...

Previous research shows that qualitative MD&A disclosures are valuable to investors and that managers modify MD&A tone to manage earnings expectations. In this study, we investigate whether the tone of the MD&A narrative is associated with the length of the auditor-client relationship. We find...