The Effect of Auditing on Promoting Exports: Evidence from Private Firms in Emerging Markets

• 成果类型: Article
• 署名作者: Cheng, C. S. Agnes; Sun, Weihang; Ye, Kangtao; Zhang, Ning
• 署名单位: Hong Kong Polytechnic University; Shanghai University of Finance & Economics; Renmin University of China; Queens University - Canada
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2018.3254
• 发表日期: 2020
• 页码: 1692-1716
• 关键词: audit; international trade; Private Firms; Emerging markets; regression discontinuity design

摘要

We investigate the effect of auditing on promoting exports for private firms in emerging markets. Using a sample of private firms from 125 countries between 2006 and 2015, we show that firms that have their financial statements audited have more exports than firms that do not have their financial statements audited. To infer causality, we employ a regression discontinuity design (RDD). Using the discontinuity around the mandatory financial audit threshold, we find that firms slightly above the threshold have more exports than do firms that are slightly below the threshold. We also exploit the countries with exogenous regulation shocks to the mandatory audits. Using the difference-in-differences (DiD) design, we find that firms that are exempted from mandatory audits have less exports subsequent to the regulation change. Further analyses reveal that the effect of auditing is more pronounced in countries with higher audit quality and for firms with limited alternative information. Our findings suggest that the auditing function promotes exports-an important economic consequence for the global economic development.