Proceedings of the 2024 2th International Conference on Economic Management, Financial Innovation and Public Service (EMFIPS 2024)

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Audit Quality, Earnings Management and Firm Performance

Authors
Jinjing Li1, *
1Nottingham University Business School, University of Nottingham, Nottingham, NG7 2RD, UK
*Corresponding author. Email: lijinjing1998@163.com
Corresponding Author
Jinjing Li
Available Online 7 May 2025.
DOI
10.2991/978-94-6463-706-9_20How to use a DOI?
Keywords
Audit quality; Earnings management; Firm performance; Corporate governance
Abstract

Audit quality has always been a focus of public and government, and high-quality audits which represent more reliable financial information is crucial for the development of firms. This paper uses Chinese A-share listed firms on Shanghai and Shenzhen Stock Exchange from 2012 to 2021 as the research sample, and adopts multilevel regression model to study the impact of audit quality on firm performance and its potential impact mechanism. This paper has three findings: (1) High-quality audits can improve firm performance; (2) High-quality audits has a positive impact on firms performance by limiting real earnings management; (3) In non-SOEs and firms with low ownership concentration, high-quality audits can promote firms performance more significantly. This paper supplements the relevant literature on the influence factors of firm performance, and can provide reference for firms and stakeholders in improving corporate governance and decisions.

Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2024 2th International Conference on Economic Management, Financial Innovation and Public Service (EMFIPS 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
7 May 2025
ISBN
978-94-6463-706-9
ISSN
2352-5428
DOI
10.2991/978-94-6463-706-9_20How to use a DOI?
Copyright
© 2025 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Jinjing Li
PY  - 2025
DA  - 2025/05/07
TI  - Audit Quality, Earnings Management and Firm Performance
BT  - Proceedings of the 2024 2th International Conference on Economic Management, Financial Innovation and Public Service (EMFIPS 2024)
PB  - Atlantis Press
SP  - 214
EP  - 223
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-706-9_20
DO  - 10.2991/978-94-6463-706-9_20
ID  - Li2025
ER  -