Research on the Effect of Audit Quality on Corporate Charity based on the Moderating Role of Industry Competition and Marketing Level

Abstract

The concept of corporate social responsibility has been proposed since the early 20th century, it has been receiving continued attention from the theoretical and practical circles. While the enterprise pursues profitability, social responsibility emphasizes that enterprises pay attention to the contribution to the environment, consumers, and society in the production process. As a significant manifestation of corporate performance of social responsibility, charity has become the focus of research in social responsibility. There is already literature to analyze the influential factors from many perspectives. However, the quality of audit as an independent economic supervision activity has not been studied. Therefore, this article tries to analyze the effect on enterprises from the perspective of audit quality. This study found that the quality of the audit is significantly positively associated to the charity of the enterprise in China. The higher the quality of the audit, the stronger the philanthropic conduct of an enterprise. In terms of moderating, the industry's competitive intensity and the level of marketing of enterprises have played a positive role in pushing the relationship between audit quality and corporate charity behavior. The conclusion of this article can help the government encourage enterprises to enhance the audit quality, thereby promoting corporate contributions and achieving their social value.