Information sharing between mutual funds and auditors

• Main Authors: HOPE, Ole‐Kristian, RAO, Pingui, XU, Yanping, YUE, Heng
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2023
• Subjects: Audit fees; Audit quality; Auditors; China; Emerging markets; Guanxi; Information sharing; Mutual funds; Trading profits; Accounting; Corporate Finance
• Online Access: https://ink.library.smu.edu.sg/soa_research/1984; https://ink.library.smu.edu.sg/context/soa_research/article/3011/viewcontent/information.pdf
• Institution: Singapore Management University

This paper examines whether there is information sharing between mutual funds and their auditors about the auditors’ other listed firm clients. Using data from the Chinese market, we find that mutual funds earn higher profits from trading in firms that share the same auditors. The effects are more p...