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...

Accounting reforms for careless audits have not come to grips with the basic problem affecting the accounting industry, which is that accounting firms work for the companies they audit. A lax audit can be conceived of as a multi-period game, in which the immediate and future payoffs to the...

This study investigates whether managerial ownership related agency costs are associated with the demand for audit quality in a sample of small private firms. The literature on audit quality suggests that firms with high agency costs are more likely to demand audit quality. Our database enables...