Auditing research using Chinese data: what’s next?

Abstract

During the past decade, there has been a surge in auditing research that exploits Chinese data, much of which is published in top tier journals. China has been an attractive setting for auditing research due to the highly granular nature of the available data on public audits and the unique features of Chinese institutions. These advantages have allowed researchers to use Chinese data to study important auditing questions that US data is unable to address. But the popularity of Chinese data among researchers means that most of the obvious questions that lend themselves to the use of Chinese data are likely to be exhausted. In addition, newly mandated disclosures in the US and Europe are quickly making Chinese data much less unique than it used to be. Now that the “low hanging fruit” is gone, researchers who plan to use Chinese data will have to be more creative. This paper suggests some strategies, going forward, that are designed to further exploit the richness of Chinese data to address important questions in the auditing literature.