The value of audit qualifications in China

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Show simple item record Czernkowski, R Green, W Wang, Y 2012-02-02T11:03:33Z 2010
dc.identifier.citation Managerial Auditing Journal, 2010, 25 (5), pp. 404 - 426
dc.identifier.issn 0268-6902
dc.identifier.other C1 en_US
dc.description.abstract Purpose: The purpose of this paper is to determine whether audit opinions matter in China after the introduction of several key regulatory changes, specifically aimed at strengthening the confidence of investors in the audit function. Design/methodology/approach: The question is addressed by examining the market response to modified audit opinions of companies listed on the Shanghai Stock Exchange. Findings: In contrast to earlier research, this paper does not find evidence that modified audit opinions have significant information value to Chinese investors, despite the regulatory changes. However, when partitioning the sample by year, there is weak evidence of a stock price response to modified audit opinions in 2003. Examination of the impact of different types of audit opinions shows no consistent results. Research limitations/implications: The results reported in this paper must be considered in light of the limitations inherent in empirical analyses. That is, the relationships identified in this paper are indicative of potential earnings management or audit opinion shopping, however, the paper cannot provide the actual reasons for these empirical results. Practical implications: The results suggest the Chinese market is beginning to value audit opinions in the same fashion way as more developed markets. Originality/value: The paper refines market reaction models used in earlier studies through the introduction of additional explanatory variables, together with an improved methodology. © Emerald Group Publishing Limited.
dc.language eng
dc.relation.isbasedon 10.1108/02686901011041812
dc.title The value of audit qualifications in China
dc.type Journal Article
dc.parent Managerial Auditing Journal
dc.journal.volume 5
dc.journal.volume 25
dc.journal.number 5 en_US
dc.publocation United Kingdom en_US
dc.identifier.startpage 404 en_US
dc.identifier.endpage 426 en_US BUS.School of Accounting en_US
dc.conference Verified OK en_US
dc.for 150102 Auditing and Accountability
dc.personcode 106485
dc.percentage 100 en_US Auditing and Accountability en_US
dc.classification.type FOR-08 en_US
dc.edition en_US
dc.custom en_US en_US
dc.location.activity en_US
dc.description.keywords Auditing, China, Stock exchanges, Stock returns en_US
dc.description.keywords Auditing
dc.description.keywords China
dc.description.keywords Stock exchanges
dc.description.keywords Stock returns
pubs.embargo.period Not known
pubs.organisational-group /University of Technology Sydney
pubs.organisational-group /University of Technology Sydney/Faculty of Business
pubs.organisational-group /University of Technology Sydney/Faculty of Business/School of Accounting
utslib.copyright.status Closed Access 2015-04-15 12:17:09.805752+10
utslib.collection.history School of Accounting (ID: 328)
utslib.collection.history Closed (ID: 3)

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