This study investigates whether the expanded audit report is informative to investors in the setting of an emerging economy. Using the recent staggered adoption of the expanded audit report for A+H and A share firms in China, we find robust evidence that abnormal trading volume and earnings...

We examine whether controlling shareholders' financial arrangements and financial risk affect auditors' assessments and perceptions of firms' financial reporting risk. Adopting a sample of Chinese firms covering the years 2003 to 2016, we find that audit fees are higher for firms where...