Joint and Several Liability,Litigation Preconditions and Audit Quality
The paper examines the economic effects of the trial judgement of joint and several liability on BDO China.Our study has the following findings:first,the capital market regarded the judgement as a signal to strengthen investor protection;second,the judgement pushed the auditors to en-hance their prudence;third,the clients'financial reporting quality is improved after the judgment;fourth,the above effects are more pronounced in areas where administrative penalties or criminal convictions are not the litigation preconditions for civil proceedings for false statements.The study refutes the as-sertion made by Simunic et al.(2017)that it is difficult to recover damages from auditors in China's legal system.
Joint and Several LiabilityLitigation PreconditionsInvestor ProtectionAuditor's PrudenceFinancial Reporting Quality
万方数据
维普
