Capitalizing on a unique setting in China where auditors disclose their prosocial activities, we examine the role that auditor social responsibility plays in shaping their performance. In one direction, behavior consistency theory implies that individual auditors exhibiting more social commitment in their off-the-job activities behave similarly during engagements, enhancing the quality of their audits. In the other direction, accounting firms’ internal structures along with external disciplinary forces mute the impact of heterogeneous auditor characteristics on their performance. In a staggered difference-in-differences (...) design, we report a significant fall in the magnitude of companies’ discretionary accruals and the incidence of financial reporting irregularities after their auditors begin contributing to social welfare, relative to companies whose auditors refrain from contributing during the same timeframe. Additional evidence implies that the higher audit quality stems from auditors better protecting their independence and improving their competence in the post-contribution period. Collectively, our results provide insights into the importance of auditors’ prosocial attitudes to their external monitoring. (shrink)

This paper studies how the human capital embedded in rank-and-file employees affects firms’ stock price crash risk. Employing a unique setting in China where we measure human capital using employee information at the firm level, we show that human capital quality improves firms’ internal information environments, curbs bad-news hoarding and overinvestment, leading to lower stock price crash risk. The findings are robust to instrumental variable regressions. Our study highlights the internal informational role of human capital and sheds light on its (...) implications for capital markets and outside investors. Therefore, we contribute to the literature on the interaction between non-shareholding stakeholders and shareholders. (shrink)

This study aimed to explore the mediating effects of internet gaming disorder, social network use, and generalized pathological internet use on the association between loneliness and depression. A total of 2211 junior high school students completed questionnaires regarding loneliness, internet gaming disorder, social network use, GPIU, and depression. The results of a structural equation model revealed that the path coefficient of loneliness to depression was significantly positive, loneliness could not predict depression through GPIU directly, but loneliness could predict depression through (...) internet gaming disorder to GPIU, loneliness could predict depression through social network use to GPIU, and loneliness could not predict depression through internet gaming disorder to social network use to GPIU. These results provided significant implications for the prevention and reduction of depression in Chinese junior high school students. (shrink)