Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/241791 
Year of Publication: 
2019
Citation: 
[Journal:] China Journal of Accounting Research [ISSN:] 1755-3091 [Volume:] 12 [Issue:] 1 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2019 [Pages:] 93-112
Publisher: 
Elsevier, Amsterdam
Abstract: 
Recently, with the migration of wealthy Chinese elites becoming increasingly prevalent, the market has come to believe that firms with controlling persons with foreign residency rights have serious agency problems. We study the impact of controlling persons with foreign residency rights on corporate audit perspective. We find that firms whose controlling persons have foreign residency rights are more likely to use high-quality auditing services, and that this behavior is more obvious in regions with lower marketization and in firms with higher separation of ownership and control. We further study the effect of firms whose controlling persons have foreign residency rights that use high-quality Big 4 auditors and find that such firms have better corporate governance and accounting performance.
Subjects: 
Audit
Corporate governance
Foreign residency rights
Signal transmission
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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