Does Audit Market Competition Improve Audit Quality?——A quasi-natural experiment on the implementation of the"Filing System"
Taking the implementation of the"filing system"under the new Securities Law as a quasi-natural experiment,this study adopts a DID model using a sample of A-share listed companies in China from 2016 to 2022 to examine the impact of audit market competition on audit quality.The results indicate that after the implementation of the"filing system",the concentration on the audit market has significantly reduced,and audit firms confronted with the market competition are more likely to reduce audit fees and face a higher probability of being replaced.The intensification of audit market competition after the implementation of the"filing system"has significantly improved audit quality,indicating that its implementation has promoted healthy competition in China's audit market.The cross-sectional analysis reveals that the impact of audit market competition on audit quality is more pronounced when auditing relationship is unstable,audit firms are less professional,less busy,or audit clients are located in regions with stronger government intervention or weaker legal environment.This paper provides empirical evidence on the micro-economic consequences of the revision of the new Securities Law from the perspective of audit quality,which is of values for understanding audit market competition and the determinants of audit quality.
audit market competitionaudit qualityimplementation of the"filing system"audit service supply
NETL
NSTL
万方数据
