Green Finance Policy, Financial Risk, and Audit Quality: Evidence from China
研究发现中国绿色金融政策实施后，绿色企业审计质量提升，表现为更易获得有利审计意见、支付更低审计费用且财务报告质量更高，其机制是政策降低了企业财务风险并增加了低成本银行贷款。
Using the green finance policies (GFPs) in China as a shock to capital allocation, we find that the implementation of GFPs improves audit quality for green firms. Specifically, green firms are likely to receive favorable audit opinions, pay lower audit fees, and generate higher-quality financial reports after the implementation of GFPs. When examining the mechanisms through which GFPs affect audit risk for green firms, we find that green firms are likely to experience lower financial risks and have access to more bank loans at a lower cost after the implementation of GFPs. Further analysis shows that the main results are more pronounced when GFPs are better enforced, where auditors face more government intervention, and where firms are financially constrained. Overall, we document that GFPs decrease financial risk for green firms and have a positive spillover to auditors by mitigating audit risk.