Can Big 4 Auditors Increase Accounting Quality

Abstract

This study investigates the relationship between the big Four auditors and accounting quality. We tested this prediction by examining a sample of A-share listed companies. The results show that the big four auditors can significantly improve the accounting quality of listed companies, while corporate leverage ratio and board size also affect the accounting quality of listed companies. The analysis also found that lower accounting quality will increase the attention of securities analysts. Listed companies should timely disclose relevant information to improve accounting quality.