We examine the association between borrower (firm) and lender (bank) state ownership and accounting conservatism for a sample of Chinese firms. We hypothesize that state-owned enterprises (SOEs) adopt less conservative accounting than non-state-owned enterprises (NSOEs) because lenders are less...

We examine the relation between the use of collateral and financial reporting conservatism for a sample of Chinese firms. In the absence of flexibility in risk pricing through interest rates and strong contract enforcement in China, we find that lenders reduce collateral requirements from more...

We examine whether Big 4 auditors and non-Big 4 auditors maintain similar or different levels of financial reporting quality for private firms. DeAngelo (1981) suggests that litigation and reputation considerations incentivize Big 4 auditors to deliver higher audit quality than non-Big 4...