Plausibly Exogenous [1164] - Bullet Trains (04/10/2023)

LHS Variable
Audit quality

RHS Variable
Audit market competition

Source of Exogenous Variation
Staggered introduction of bullet trains in different Chinese cities as shocks to travel time between audit clients and prospective audit firms, which increases the threat of competition for incumbent audit firms

- Pan, Shroff, and Zhang (2023), “The dark side of audit market competition”