Research on the Impact of Auditor-client Geographical Distance on Analyst Forecasts
Location,as a fundamental factor that restricts information transmission,affects the cost of information acquisition and supervision for external economic entities.The impact of geographical distance differences between auditors and clients on the effectiveness of audit supervision has always been of great concern to the academia.This paper is based on the distance data between accounting firms and the registered location of enterprises from 2017 to 2021,and empirically tests the impact of geographical distance differences between auditors and clients on the accuracy of analyst earnings forecasts.The results indicate that geographical proximity between auditors and clients can improve the accuracy of analyst earnings forecasts by improving audit quality and reducing major shareholder encroachment behavior.The improvement effect is more pronounced in samples with more severe separation of weights;In samples where the audited entity and audit firm have convenient transportation and auditors have industry expertise,this improvement effect will be weakened.This paper enriches the research on the economic consequences of auditor-client information differences from a geoeconomic perspective.
NETL
NSTL
万方数据
