Can Shared Auditors with Clients Improve Corporate Eficiency of Inventory Management

Abstract

Abstract: To alleviate information asymmetry with the clients in the supply chain so as to improve cooperation efficiency is the key to supply chain governance. Then, will shared auditors with the clients in the supply chain play an active role in the supply chain governance? For this reason, this paper takes China's A-share listed companies from 2009 to 2018 as research samples to investigate the impact of shared auditors with clients in supply chain on the corporate efficiency of inventory management. The results show that firms sharing auditors with customers have higher inventory turnover ratios. It is found in further study that in such situations as higher uncertainty of demand, higher degree of information asymmetry between firms and clients, and firms having weaker ability to bargain, to share auditors with clients will have more significant improving effect on corporate efficiency of inventory management, and the business performance will be better.

Key words: shared auditors, inventory management efficiency, information asymmetry, supply chain

CLC Number:

F239.42

ZHENG Qian-wen, ZHU Lei. Can Shared Auditors with Clients Improve Corporate Eficiency of Inventory Management[J]. Contemporary Finance & Economics, 2021, 0(8): 126-136.

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