The price of employee-related CSR deficiencies: evidence from peer auditor death

Drawing on the post-trauma growth theory, this study examines whether peer auditor death, a proxy for extreme employee-related CSR deficiencies, affects auditor exit from the auditing industry. Using a sample from the Chinese auditing market during over 2010–2019, our findings reveal that peer audit...

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Main Authors: Xingqiang Du, Zhihan Cai, Xinshu Zhang, Yuhui Xie
Format: Article
Language:English
Published: Taylor & Francis Group 2025-02-01
Series:China Journal of Accounting Studies
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/21697213.2025.2467352
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author Xingqiang Du
Zhihan Cai
Xinshu Zhang
Yuhui Xie
author_facet Xingqiang Du
Zhihan Cai
Xinshu Zhang
Yuhui Xie
author_sort Xingqiang Du
collection DOAJ
description Drawing on the post-trauma growth theory, this study examines whether peer auditor death, a proxy for extreme employee-related CSR deficiencies, affects auditor exit from the auditing industry. Using a sample from the Chinese auditing market during over 2010–2019, our findings reveal that peer auditor death is significantly positively associated with auditor exit from the auditing industry. Moreover, our findings are robust to a variety of sensitivity tests using alternative proxies for peer auditor death and auditor exit. Besides, the relation between peer auditor death and audit exit is more pronounced for disease-related auditor death, longer-tenured deceased (dead) auditors, audit offices with high workload, younger auditors, and audit offices in provinces with higher marketisation indexes. Lastly, peer auditor death leads to an increase in auditor resignation at the audit office level and a decreased likelihood that auditors exiting from the auditing industry serve as top managers in listed firms.
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spelling doaj-art-2a2c98b74146440ca4c8bfec29a4abfe2025-08-20T03:05:22ZengTaylor & Francis GroupChina Journal of Accounting Studies2169-72132169-72212025-02-0113010.1080/21697213.2025.2467352The price of employee-related CSR deficiencies: evidence from peer auditor deathXingqiang Du0Zhihan Cai1Xinshu Zhang2Yuhui Xie3Center for Accounting Studies, Accounting Department, Xiamen University, Xiamen, Fujian, ChinaSchool of Management, Xiamen University, Xiamen, ChinaAccounting Department, Xiamen University, Xiamen, ChinaAccounting Department, Xiamen University, Xiamen, ChinaDrawing on the post-trauma growth theory, this study examines whether peer auditor death, a proxy for extreme employee-related CSR deficiencies, affects auditor exit from the auditing industry. Using a sample from the Chinese auditing market during over 2010–2019, our findings reveal that peer auditor death is significantly positively associated with auditor exit from the auditing industry. Moreover, our findings are robust to a variety of sensitivity tests using alternative proxies for peer auditor death and auditor exit. Besides, the relation between peer auditor death and audit exit is more pronounced for disease-related auditor death, longer-tenured deceased (dead) auditors, audit offices with high workload, younger auditors, and audit offices in provinces with higher marketisation indexes. Lastly, peer auditor death leads to an increase in auditor resignation at the audit office level and a decreased likelihood that auditors exiting from the auditing industry serve as top managers in listed firms.https://www.tandfonline.com/doi/10.1080/21697213.2025.2467352Peer auditor deathauditor exitemployee-related CSR deficienciespost-trauma growth theory
spellingShingle Xingqiang Du
Zhihan Cai
Xinshu Zhang
Yuhui Xie
The price of employee-related CSR deficiencies: evidence from peer auditor death
China Journal of Accounting Studies
Peer auditor death
auditor exit
employee-related CSR deficiencies
post-trauma growth theory
title The price of employee-related CSR deficiencies: evidence from peer auditor death
title_full The price of employee-related CSR deficiencies: evidence from peer auditor death
title_fullStr The price of employee-related CSR deficiencies: evidence from peer auditor death
title_full_unstemmed The price of employee-related CSR deficiencies: evidence from peer auditor death
title_short The price of employee-related CSR deficiencies: evidence from peer auditor death
title_sort price of employee related csr deficiencies evidence from peer auditor death
topic Peer auditor death
auditor exit
employee-related CSR deficiencies
post-trauma growth theory
url https://www.tandfonline.com/doi/10.1080/21697213.2025.2467352
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