A Study of the Relationship between Short-Selling and Audit Quality

Authors

  • Meizhen Chen

DOI:

https://doi.org/10.61173/06zfzs63

Keywords:

Short Selling, Margin Trading, Audit Quality, Corporate Governance

Abstract

This paper utilizes a least squares method to discover the influence of the short-selling mechanism implementation on audit quality, based on a sample of A-share listed companies from 2010 to 2022. It finds that the implementation of the short-selling mechanism encourages auditors to enhance audit quality. Further analysis reveals that the short-selling mechanism has a stronger impact on improving the audit quality of privately held businesses and those with a lower level of corporate governance. The paper’s conclusions offer empirical support for China’s full implementation of the shorting mechanism and the improvement of audit quality. The research findings also enrich the research on this topic in the field of auditing.

References

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Published

2024-04-16

Issue

Vol. 2 No. 2 (2024): Volume 2, Issue 2

Section

Articles

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Copyright (c) 2024 by the authors.

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This work is licensed under a Creative Commons Attribution 4.0 International License.