The Enron/Arthur Andersen scandal has raised concerns internationally about auditor independence, audit quality, and the need for regulatory action such as mandatory auditor rotation. China's unique institutional features provide us with a setting in which to compare comprehensively the various...

This study examines whether regulatory sanctions have a disciplinary effect on auditors in a large emerging market. Based on the enforcement releases issued by the China Securities Regulatory Commission (CSRC) during 1996-2007, we hypothesize and find that auditors who are sanctioned for failure...

China has adopted an executive‐dominated government audit system (GAS), which is frequently criticized for lacking independence. Through a questionnaire survey and interviews, we investigate whether and how the reporting/control requirements of the GAS (hereafter, the institutional...

This study examines the effectiveness of regulatory sanctions as deterrents to auditors' unethical behavior. Although the effectiveness of formal sanctions is crucial for regulators and policy makers, few empirical studies have addressed the issue. In this paper, we provide empirical evidence on...

We show using a sample of U.S. listed firms that larger and older family firms and those that plan to access the capital market differentiate themselves from other family firms by choosing independent and effective corporate boards and by taking demonstrably independent board actions that are...

This study uses a unique institutional setting in China to investigate empirically the association between the organizational form of CPA firms (unlimited liability versus limited liability) and the reporting conservatism of auditors. Based on a sample of 5,007 audits of Chinese listed companies...