Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/241803 
Year of Publication: 
2019
Citation: 
[Journal:] China Journal of Accounting Research [ISSN:] 1755-3091 [Volume:] 12 [Issue:] 4 [Publisher:] Elsevier [Place:] Amsterdam [Year:] 2019 [Pages:] 337-355
Publisher: 
Elsevier, Amsterdam
Abstract: 
Do supply chain audits have real effects? We focus on the effect of shared auditors in the supply chain on corporate cost stickiness. When a supplier shares auditors with its customers, the shared auditors provide informational advantages for suppliers' managers, thus revising their optimistic or pessimistic expectations and influencing suppliers' cost stickiness. Using a sample of Chinese A-share listed companies from 2009 to 2017, we explore the relationship between shared auditors and suppliers' cost stickiness conditional on management expectations. The results show that shared auditors in the supply chain reduce suppliers' cost stickiness significantly when suppliers' managers hold optimistic expectations, and increase suppliers' cost stickiness in cases of pessimistic expectations. Furthermore, the greater the number of shared auditors, the stronger the effect. Such effects are more pronounced when supplier firms share auditors with important customers, have higher demand uncertainty, and use big 10 auditors.
Subjects: 
Shared auditors
Cost stickiness
Management expectations
Information environment
Supply chain
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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