Audit Quality and Corporate Investment Strategy: Evidence from Japan

2023 Fiscal Year Research-status Report

• Project/Area Number: 23K18800
• Research Institution: Hitotsubashi University
• Principal Investigator: LU CHUN 一橋大学, 大学院経営管理研究科, 講師 (20979489)
• Project Period (FY): 2023-08-31 – 2025-03-31
• Keywords: Audit Quality / Investment Strategy / Japan Code

Outline of Annual Research Achievements

This research aims to explore the potential positive correlation between audit quality and investment efficiency. Spanning from October 2023 to March 2024, an extensive literature review has been meticulously conducted, culminating in the formulation of a comprehensive analytical framework. Due to the voluminous nature of the required data, an initial dataset covering a five-year period was manually collected and subjected to primary analysis, yielding preliminary confirmation of the anticipated outcomes. Subsequent to the involvement of a research assistant, the process of gathering the complete dataset has been expedited. Presently, the research is in the midst of additional data analysis and manuscript composition.

Current Status of Research Progress

3: Progress in research has been slightly delayed.

Reason

During the initial stages of the first phase, the principal investigator initiated manual data collection for a segment of the entire data duration, attributable to the unavailability of the research assistant until March 2024. Owing to the considerable magnitude of data necessitating manual retrieval and concurrent drafting of the literature review by the principal investigator, there was a marginal temporal setback encountered during the initial portion of this phase. The subsequent integration of the research assistant facilitated an acceleration in the research tempo, thereby ensuring consistent alignment with the predefined timeline.At present, the ongoing activities involve the analysis of additional data and the drafting of the manuscript.

Strategy for Future Research Activity

As the research project progresses, additional robust data analysis is required. Therefore, the research assistant will conduct further data collection, followed by the principal investigator's analysis. Concurrently, the principal investigator will continue manuscript writing and revisions. Upon completion, the manuscript will be submitted for presentation at international conferences. Subsequently, revisions will be made in response to feedback and the manuscript will be submitted to journals.