Although the benefits of auditing are uncontroversial in developed markets, there is scant evidence about its effect in emerging economies. Auditing derives its value by increasing the credibility of financial statements, which in turn increases investors’ reliance on them in developed...

This study examines a public policy issue: whether government officials engage in earnings management to collude with private investors in the privatization of state-owned enterprises (SOEs). We find that the managers of listed Chinese SOEs, who are de facto bureaucrats, employ income-decreasing...

Since 2015, the China Securities Regulatory Commission (CSRC) has disclosed initial public offering (IPO) companies’ review outcomes and hearing questions. For 15% of the companies that pass the IPO screening process, the CSRC also discloses some of their hearing questions that require further...