What question did this study set out to answer?

Investigate how assurance services, earnings management, and strategic deviance moderate the value relevance of accounting information in China's A-share capital market.

August 14, 2026Future Business JournalOpen Access

The moderating role of assurance services, earnings management and strategic deviance in the value relevance of accounting information in China’s capital market

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Authors

LNLiyan NiUniversiti Putra Malaysia HMHasri Bin MustafaUniversiti Putra Malaysia SSSaidatunur Fauzi Bin SaidinUniversiti Putra Malaysia

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Implication

Observational panel study reveals how audits, earnings management, and strategic choices shape accounting information relevance in Chinese equities, highlighting distinct corporate reporting dynamics.

Key Points

Investigate how assurance services, earnings management, and strategic deviance moderate the value relevance of accounting information in China's A-share capital market.
Analyzed 11,525 firm-year observations from 2006 to 2024 in China's A-share market.
Employed annual cross-sectional regressions and panel data models with interaction terms, incorporating firm fixed effects and alternative event windows.
Value relevance of unexpected earnings, book value, and operating cash flows significantly increased over the 2006–2024 period.
Audit opinions positively moderated earnings relevance, Big Four audits positively moderated book value relevance, and real earnings management increased earnings relevance while decreasing cash flow relevance.
Strategic deviance negatively moderated earnings relevance but positively moderated book value relevance, with assurance effects persisting long-term and strategic effects remaining short-term.

Cite This Study

Ni et al. (2026) studied this question.

synapsesocial.com/papers/6a7ee587b70b84ec8b9147d7 https://doi.org/10.1186/s43093-026-00962-y

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The moderating role of assurance services, earnings management and strategic deviance in the value relevance of accounting information in China’s capital market

Discussion

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Implication

Key Points

Cite This Study

The moderating role of assurance services, earnings management and strategic deviance in the value relevance of accounting information in China’s capital market

Discussion

Member takes

Implication

Key Points

Cite This Study

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