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...

Many economic agents, including CEOs, physicians, entrepreneurs, and political leaders are entrusted with decision-making authority. These economic agents act as trustees who make risky decisions, impacting their own welfare and that of their stakeholders. Stakeholders often demand measures to...