Enhancement of audit quality and optimization of risk management: Dual engines for corporate value growth analysis

Pengmian Wang and Shuguang Liang

International Review of Economics & Finance, 2025, vol. 103, issue C

Abstract: This study examines the interplay among internal audit quality, risk management, and corporate value creation using a sample of A-share listed firms from 2013 to 2022. The empirical findings reveal a statistically robust positive association between enhanced audit quality and value creation, with risk management serving as a critical mediating channel. Further heterogeneity analysis demonstrates that the value-enhancing effect of audit quality is more pronounced in firms operating under intense market competition or with superior internal control systems. Additionally, this relationship strengthens with higher levels of financial constraints and deeper digital transformation adoption.

Keywords: Internal audit quality; Risk management; Corporate value creation (search for similar items in EconPapers)
JEL-codes: G32 G34 M41 M42 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:103:y:2025:i:c:s1059056025005027

DOI: 10.1016/j.iref.2025.104339

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