Do Strategic Alliances Reduce the Robustness of Audit Reports?
The strategic alliances,while empowering enterprises to enhance their competitive advantage,may also impact their existing operational methods and financial information,thus potentially causing disruptions to stakeholders.We examined the influence of potential risks of strategic alliances on financial information disclosure from the perspective of audit report robustness.It is found that participating in strategic alliances significantly weakens the robustness of audit reports.Through the mechanism analysis,we find that strategic alliances can increase business complexity,raise operational risks,and increase internal control deficiencies,thereby leading to a decline in audit report robustness.Furthermore,we find that strategic alliances have a negative impact on audit report robustness only when the alliance cooperation is contractual,the allies are small-scale enterprises or state-owned enterprises.However,the negative impact of strategic alliances on audit report robustness is weakened when auditors have higher professional competence,with more effective external governance and sounder internal governance.This paper reveals the potential risks of strategic alliances,providing important insights and references for improving the quality of information disclosure in alliance enterprises,strengthening audit oversight,and enhancing capital market regulation.
NETL
NSTL
万方数据
