Superstition, Risk Aversion, and Audit Quality: Evidence from China

被引：2

作者：

Dou, Huan ^{[1
]}

Khoo, Eunice S. ^{[2
]}

Tan, Weiqiang ^{[3
]}

Zhang, Janus Jian ^{[4
]}

机构：

[1] Jinan Univ, Sch Management, Dept Accounting, Guangzhou, Peoples R China

[2] Australian Natl Univ, Coll Business & Econ, Res Sch Accounting, Canberra, Australia

[3] Educ Univ Hong Kong, Fac Liberal Arts & Social Sci, Dept Social Sci & Policy Studies, Hong Kong, Peoples R China

[4] Hong Kong Baptist Univ, Sch Business, Dept Accountancy Econ & Finance, Hong Kong, Peoples R China

来源：

AUDITING-A JOURNAL OF PRACTICE & THEORY | 2022年 / 43卷 / 04期

基金：

中国国家自然科学基金;

关键词：

individual auditor; traditional culture; zodiac year; superstition; risk aversion; audit quality;

D O I：

10.2308/AJPT-2022-140

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We examine whether signing auditors' perceptions of bad luck related to the Chinese zodiac-year superstition affect audit quality. We argue that these perceptions of bad luck heighten signing auditors' sense of risk and lead them to act more cautiously in their zodiac years, leading to improved audit quality. We find that clients audited by lead engagement auditors in their zodiac years exhibit lower discretionary accruals and lower propensity to restate. The effects of zodiac-year superstition are evident among lead engagement auditors who are older and hold the partner title. The effects are also evident in large audit firms, which face greater reputation risk, and in provinces with a strong influence of traditional culture. In addition, we find some suggestive evidence that lead engagement auditors may increase audit effort during their zodiac years. Overall, our results support the contention that lead engagement auditors' zodiac year beliefs positively affect audit quality.

引用

页码：51 / 85

页数：35

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