A research on the regulatory human resource allocation efficiency under the random examination system

The traditional view is that the more regulatory staff is, the stronger regulatory enforcement is, and the better regulatory effect is. However, from the perspective of team coordination, the more regulatory staff is, the higher the regulatory team coordination cost is, and the worse regulatory effe...

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Main Author: Jian Chu
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/10.1080/21697213.2025.2469696
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author Jian Chu
author_facet Jian Chu
author_sort Jian Chu
collection DOAJ
description The traditional view is that the more regulatory staff is, the stronger regulatory enforcement is, and the better regulatory effect is. However, from the perspective of team coordination, the more regulatory staff is, the higher the regulatory team coordination cost is, and the worse regulatory effect is. Based on the CSRC’s random examination system, it is found that under this system, corporate financial misreporting decreases firstly and then increases with the increase of on-site examiners. Mechanism tests indicate that this result is more significant when the regulatory team coordination cost is higher, such as the time team members having worked together is shorter, team diversity is higher, or team members are busier. It is also found that auditors nonlinearly adjust their audit fees according to the change of regulatory pressure. The above results suggest that the regulatory team coordination cost does influence the regulatory human resource allocation efficiency.
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publisher Taylor & Francis Group
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series China Journal of Accounting Studies
spelling doaj-art-6893570c571e4377ae98e7ba9a4fa2fa2025-08-20T02:38:13ZengTaylor & Francis GroupChina Journal of Accounting Studies2169-72132169-72212025-02-0113010.1080/21697213.2025.2469696A research on the regulatory human resource allocation efficiency under the random examination systemJian Chu0School of Business, Nanjing University, Nanjing, Jiangsu, ChinaThe traditional view is that the more regulatory staff is, the stronger regulatory enforcement is, and the better regulatory effect is. However, from the perspective of team coordination, the more regulatory staff is, the higher the regulatory team coordination cost is, and the worse regulatory effect is. Based on the CSRC’s random examination system, it is found that under this system, corporate financial misreporting decreases firstly and then increases with the increase of on-site examiners. Mechanism tests indicate that this result is more significant when the regulatory team coordination cost is higher, such as the time team members having worked together is shorter, team diversity is higher, or team members are busier. It is also found that auditors nonlinearly adjust their audit fees according to the change of regulatory pressure. The above results suggest that the regulatory team coordination cost does influence the regulatory human resource allocation efficiency.https://www.tandfonline.com/doi/10.1080/21697213.2025.2469696Regulatory resource allocationregulatory staffteam coordinationrandom examination system
spellingShingle Jian Chu
A research on the regulatory human resource allocation efficiency under the random examination system
China Journal of Accounting Studies
Regulatory resource allocation
regulatory staff
team coordination
random examination system
title A research on the regulatory human resource allocation efficiency under the random examination system
title_full A research on the regulatory human resource allocation efficiency under the random examination system
title_fullStr A research on the regulatory human resource allocation efficiency under the random examination system
title_full_unstemmed A research on the regulatory human resource allocation efficiency under the random examination system
title_short A research on the regulatory human resource allocation efficiency under the random examination system
title_sort research on the regulatory human resource allocation efficiency under the random examination system
topic Regulatory resource allocation
regulatory staff
team coordination
random examination system
url https://www.tandfonline.com/doi/10.1080/21697213.2025.2469696
work_keys_str_mv AT jianchu aresearchontheregulatoryhumanresourceallocationefficiencyundertherandomexaminationsystem
AT jianchu researchontheregulatoryhumanresourceallocationefficiencyundertherandomexaminationsystem