Blockchain technology, audit quality and operational risks: evidence from listed companies

【Author】 Yang, Yang; Son, Hosung

【Source】MANAGEMENT DECISION

【影响因子】5.589

【Abstract】PurposeThis study examines the impact of blockchain technology on audit quality, with a particular focus on the moderating effect of corporate operational risk and the differential effects of blockchain technology on audit quality across various accounting firm types and corporate ownership structures.Design/methodology/approachWe used empirical methods to examine the impact of blockchain technology on audit quality among Chinese A-share listed companies from 2016 to 2022. The data were sourced from the China Securities Market and Accounting Research Database, and we used Python-based web scraping to capture blockchain-related keywords from financial reports. We conducted regression analysis with a fixed effects model to examine the moderating role of operational risk. Additionally, we applied propensity score matching to enhance the robustness of our findings and to assess how different accounting firm types and ownership structures affect audit quality.FindingsWe found that blockchain technology significantly reduces discretionary accrual manipulation, especially in high-risk companies, enhancing audit quality. This effect is more pronounced in firms audited by non-Big Four firms and in state-owned enterprises. The findings suggest that blockchain enhances audit quality by mitigating information asymmetry and increasing data integrity and transparency, with risk amplifying this impact.Research limitations/implicationsBased on publicly available financial report data, this study might not fully capture blockchain adoption; the findings need long-term validation. Text mining may imperfectly reflect actual blockchain use, so future research should seek more precise data to confirm its impact on audit quality. Future work should also examine customized blockchain applications across industries and firm sizes and address the technical and managerial challenges encountered in practice.Practical implicationsThe findings encourage the audit industry to adopt new technologies to drive innovation in audit practices. By providing more accurate data and transparency, blockchain helps companies better manage risks and strengthen internal controls. These results can inform policymakers in promoting blockchain applications across more areas. The study also highlights the importance of training auditors in blockchain technology to advance accounting and audit education and may inspire further research and innovation in this field.Social implicationsThis study confirms that blockchain technology enhances corporate internal risk management and control, and boosts investor and public trust by increasing the transparency and credibility of financial reporting. It encourages the audit industry to adopt new technologies to drive innovation and the evolution of audit methodologies. It also provides a reference for governments and regulators to formulate policies promoting blockchain applications across various fields. Additionally, the study highlights the importance of equipping auditors with blockchain skills to modernize accounting and audit education and further advance blockchain technology.Originality/valueThis study explores how corporate operational risk affects the relationship between blockchain technology and audit quality, as well as how this impact varies across different audit firms and corporate ownership structures. It provides evidence of blockchain's role in enhancing financial transparency and audit precision, offers practical guidance for audit firms (especially non-Big Four) on leveraging blockchain technology and examines its potential in improving governance and audit standards in state-owned enterprises.

【Keywords】Blockchain technology; Audit quality; Operational risk; Chinese listed companies; Discretionary accruals; Propensity score matching

【发表时间】2025 2025 SEP 8

【收录时间】2025-09-11

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