Corporate Governance, Audit Transparency, and Task Environment: An Integrative Framework for Understanding Financial Outcomes in Chinese Public Firms
Year: 2026
Type: preprint
Abstract: This essay develops an integrative framework linking corporate governance, audit transparency, and the task environment to the financial outcomes of Chinese publicly listed firms. Drawing on agency theory, resource dependence, and real options reasoning, I argue that governance mechanisms and audit-related transparency are complements whose effectiveness is contingent on the munificence, dynamism, and complexity of the environment in which firms operate. Because China's listed firms combine concentrated and state-linked ownership, an evolving legal system, and politically shaped information incentives, the marginal value of governance and transparency differs systematically from that observed in Anglo-American settings. By synthesizing evidence from the accounting, finance, and management literatures, I advance seven propositions, including non-monotonic relations in which additional signals of quality or favorable external attention yield diminishing, and eventually negative, returns. Ultimately, the essay concludes with measurement guidance, identification challenges, and a concrete research agenda for scholars studying transparency and performance in transition economies.
Source: SocArXiv (OSF Preprints)
Author: Andrea Ting
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7225801102
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