...Luri Bao Purpose In the context of China, this paper aims to examine the spillover effects of national audits on the external audit quality of non-state-owned listed companies through shared auditor linkages. Design/methodology/approach Using firm-year data from A-share listed companies...

... spillover effect. The mechanism test results show that peer MD&A risk information disclosure promotes corporate audit demand by increasing the perception of corporate business risk, investor attention and industry competitive pressure, thereby incentivizing companies to opt for high-quality audit...

... evidence of a spillover effect of regulatory inspection on accounting quality that financial reporting sanctions not only affect the overall accounting quality of the sanctioned company but also that of its peers in the same industry. The authors expect this study to lead to future research on the effect...