Related Experiment Video
Updated: Jul 18, 2026
09:43
The 5-Choice Serial Reaction Time Task: A Task of Attention and Impulse Control for Rodents
Published on: August 10, 2014
46.1K
Can corporate ESG performance improve audit efficiency?: Empirical evidence based on audit latency perspective
1School of Accountancy, Tianjin University of Commerce, Tianjin, China.
Plos One
|March 13, 2024
Summary
Strong Environmental, Social, and Governance (ESG) performance significantly reduces audit delays. This study highlights ESG
Area of Science:
- Accounting and Auditing
- Corporate Sustainability
- Financial Reporting
Background:
- Environmental, Social, and Governance (ESG) criteria are increasingly linked to sustainable development and "dual carbon" objectives.
- The relationship between ESG performance and audit efficiency, particularly audit delays, requires deeper investigation.
- Existing research has not fully explored how ESG impacts the timeliness of financial audits.
Purpose of the Study:
- To investigate the impact of corporate Environmental, Social, and Governance (ESG) performance on audit efficiency, focusing on audit delays.
- To analyze the mediating and moderating effects of ESG on audit efficiency using established theoretical frameworks.
- To provide empirical evidence on how ESG practices influence the speed and effectiveness of the audit process.
Main Methods:
- Utilized regression analysis and structural equation modeling (SEM) on data from A-share listed companies (2015-2022).
- Examined the direct and indirect effects of ESG performance metrics on audit delay.
- Employed stakeholder theory, sustainable development theory, shared value concept, and corporate social responsibility theory as foundational frameworks.
Main Results:
- Regression analysis indicated a significant reduction in audit delay with increased ESG performance (0.007 units per ESG unit increase).
- Structural equation modeling revealed a more pronounced negative effect of ESG on audit delay (estimated value -0.555).
- The positive impact of ESG on audit efficiency was stronger in firms with robust ESG practices, particularly non-state-owned firms with lower institutional ownership and those audited by 'Big Four' firms.
Conclusions:
- Corporate ESG performance is a critical factor in enhancing audit efficiency by reducing audit delays.
- The findings underscore the importance of strong ESG implementation for improving financial reporting timeliness and reliability.
- Provides valuable insights for corporate management, policymakers, and auditors regarding the benefits of integrating ESG principles.
Related Concept Videos
01:01Production Efficiency
Net production efficiency (NPE) is the efficiency at which organisms assimilate energy into biomass for the next trophic level. Due to low metabolic rates and less energy spent on thermoregulatory processes, the NPE of ectotherms (cold-blooded animals) is 10 times higher than endotherms (warm-blooded animals).
01:23Actor-Observer Effect
The actor-observer effect, a cognitive bias closely linked to the fundamental attribution error, refers to the tendency for individuals to attribute their behavior to external, situational factors while explaining others’ behavior in terms of internal, dispositional traits. This asymmetry in attribution significantly influences social perception and judgment.Cognitive Mechanisms Behind the EffectTwo primary psychological mechanisms contribute to the actor-observer effect: differences in visual...
01:27Halo Effect
The halo effect is a cognitive bias in which an individual's overall impression influences judgments about their specific traits. This psychological phenomenon leads people to associate positive characteristics with those they perceive as generally good and negative characteristics with those they view as bad. This effect is particularly influential in social perception, professional evaluations, and decision-making processes.The Psychological Basis of the Halo EffectThe halo effect is rooted...
01:26Equity Theory
Equity theory explains how our sense of fairness influences the dynamics of close relationships. Rooted in social psychology, the theory posits that individuals evaluate fairness by comparing the ratio of their contributions to the rewards they receive. Relationship satisfaction is highest when these ratios are perceived as balanced between partners, promoting mutual reciprocity and a sense of justice.Equity vs. Equality in RelationshipsEquity is distinct from equality. Fairness does not...