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Investor sentiment and audit-related human resource input: Evidence from audit-related job postings

Year: 2025

Type: article

Abstract: This paper finds that less favorable investor sentiment is associated with a higher level of audit-related job postings, driven by reduced corporate reputation, increased investor attention and greater regulatory pressure. Furthermore, the impact of investor sentiment on audit-related job postings is less pronounced when companies are audited by industry-specialist audit firms and more pronounced when the importance of clients to the audit firm is higher. The main findings remain robust after a series of endogeneity and robustness tests.

Source: China Journal of Accounting Research

DOI: 10.1016/j.cjar.2025.100443

Authors: Zijun Luo, Weidong Xu, Donghui Li, Rui Xu, Meiting Lu

Institutions: Zhejiang University, Guangdong University of Foreign Studies, Shenzhen University, Macquarie University

Language: English

Topic: Auditing, Earnings Management, Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: $1,800