Using the green finance policies (GFPs) in China as a shock to capital allocation, we find that the implementation of GFPs improves audit quality for green firms. Specifically, green firms are likely to receive favorable audit opinions, pay lower audit fees, and generate higher-quality financial...

In this paper, we examine the joint impact of corporate political connections and ownership structures on the auditor reporting behaviours and firms' auditor choice patterns in the Chinese market. We construct a natural experiment that alleviates endogeneity concern by employing 56 corruption...

This paper investigates how legal liability influences audit quality and audit fees, particularly in the presence of government intervention. Since 2010, all Chinese audit firms were required to transform from a structure of limited liability company (LLC) to limited liability partnership (LLP),...