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Audit opinions and information asymmetry in the stock market

Author

Listed:
  • David Abad
  • Juan P. Sánchez-Ballesta
  • José Yagüe
Abstract
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Suggested Citation

  • David Abad & Juan P. Sánchez-Ballesta & José Yagüe, 2017. "Audit opinions and information asymmetry in the stock market," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 57(2), pages 565-595, June.
    • Handle: RePEc:bla:acctfi:v:57:y:2017:i:2:p:565-595
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    File URL: http://hdl.handle.net/10.1111/acfi.12175
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    References listed on IDEAS

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    1. Choi, Sung K. & Jeter, Debra C., 1992. "The effects of qualified audit opinions on earnings response coefficients," Journal of Accounting and Economics, Elsevier, vol. 15(2-3), pages 229-247, August.
    2. Lasse Niemi & Stefan Sundgren, 2012. "Are Modified Audit Opinions Related to the Availability of Credit? Evidence from Finnish SMEs," European Accounting Review, Taylor & Francis Journals, vol. 21(4), pages 767-796, December.
    3. Greg Clinch & Donald Stokes & Tingting Zhu, 2012. "Audit quality and information asymmetry between traders," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 52(3), pages 743-765, September.
    4. Yan, Yuxing & Zhang, Shaojun, 2012. "An improved estimation method and empirical properties of the probability of informed trading," Journal of Banking & Finance, Elsevier, vol. 36(2), pages 454-467.
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    6. repec:bla:jfinan:v:44:y:1989:i:3:p:633-46 is not listed on IDEAS
    7. Butler, Marty & Leone, Andrew J. & Willenborg, Michael, 2004. "An empirical analysis of auditor reporting and its association with abnormal accruals," Journal of Accounting and Economics, Elsevier, vol. 37(2), pages 139-165, June.
    8. Biais, Bruno & Hillion, Pierre & Spatt, Chester, 1995. "An Empirical Analysis of the Limit Order Book and the Order Flow in the Paris Bourse," Journal of Finance, American Finance Association, vol. 50(5), pages 1655-1689, December.
    9. Ascioglu, Asli & Hegde, Shantaram P. & McDermott, John B., 2005. "Auditor compensation, disclosure quality, and market liquidity: Evidence from the stock market," Journal of Accounting and Public Policy, Elsevier, vol. 24(4), pages 325-354.
    10. Easley, David & O'Hara, Maureen, 1987. "Price, trade size, and information in securities markets," Journal of Financial Economics, Elsevier, vol. 19(1), pages 69-90, September.
    11. Dopuch, Nicholas & Holthausen, Robert W. & Leftwich, Richard W., 1986. "Abnormal stock returns associated with media disclosures of `subject to' qualified audit opinions," Journal of Accounting and Economics, Elsevier, vol. 8(2), pages 93-117, June.
    12. Mohammad Hudaib & T.E. Cooke, 2005. "The Impact of Managing Director Changes and Financial Distress on Audit Qualification and Auditor Switching," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 32(9-10), pages 1703-1739.
    13. Ogneva, Maria & Subramanyam, K.R., 2007. "Does the stock market underreact to going concern opinions? Evidence from the U.S. and Australia," Journal of Accounting and Economics, Elsevier, vol. 43(2-3), pages 439-452, July.
    14. Jennifer C. Ireland, 2003. "An Empirical Investigation of Determinants of Audit Reports in the UK," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30, pages 975-1016.
    15. Mohammad Hudaib & T.E. Cooke, 2005. "The Impact of Managing Director Changes and Financial Distress on Audit Qualification and Auditor Switching," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 32(9‐10), pages 1703-1739, November.
    16. Maria Consuelo Pucheta Martinez & Antonio Vico Martinez & Maria Antonia Garcia Benau, 2004. "Reactions of the Spanish capital market to qualified audit reports," European Accounting Review, Taylor & Francis Journals, vol. 13(4), pages 689-711.
    17. Jennifer C. Ireland, 2003. "An Empirical Investigation of Determinants of Audit Reports in the UK," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 30(7‐8), pages 975-1016, September.
    18. Leuz, C & Verrecchia, RE, 2000. "The economic consequences of increased disclosure," Journal of Accounting Research, Wiley Blackwell, vol. 38, pages 91-124.
    19. Diamond, Douglas W & Verrecchia, Robert E, 1991. "Disclosure, Liquidity, and the Cost of Capital," Journal of Finance, American Finance Association, vol. 46(4), pages 1325-1359, September.
    20. Richard Lambert & Christian Leuz & Robert E. Verrecchia, 2007. "Accounting Information, Disclosure, and the Cost of Capital," Journal of Accounting Research, Wiley Blackwell, vol. 45(2), pages 385-420, May.
    21. Merton, Robert C, 1987. "A Simple Model of Capital Market Equilibrium with Incomplete Information," Journal of Finance, American Finance Association, vol. 42(3), pages 483-510, July.
    22. Ole-Kristian Hope & Wayne Thomas & Dushyantkumar Vyas, 2011. "Financial credibility, ownership, and financing constraints in private firms," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(7), pages 935-957, September.
    23. Taffler, Richard J. & Lu, Jeffrey & Kausar, Asad, 2004. "In denial? Stock market underreaction to going-concern audit report disclosures," Journal of Accounting and Economics, Elsevier, vol. 38(1), pages 263-296, December.
    24. Dechow, Patricia & Ge, Weili & Schrand, Catherine, 2010. "Understanding earnings quality: A review of the proxies, their determinants and their consequences," Journal of Accounting and Economics, Elsevier, vol. 50(2-3), pages 344-401, December.
    25. Diamond, Douglas W, 1985. "Optimal Release of Information by Firms," Journal of Finance, American Finance Association, vol. 40(4), pages 1071-1094, September.
    26. Hans R. Stoll, 2000. "Presidential Address: Friction," Journal of Finance, American Finance Association, vol. 55(4), pages 1479-1514, August.
    27. Glosten, Lawrence R. & Milgrom, Paul R., 1985. "Bid, ask and transaction prices in a specialist market with heterogeneously informed traders," Journal of Financial Economics, Elsevier, vol. 14(1), pages 71-100, March.
    28. Easley, David, et al, 1996. "Liquidity, Information, and Infrequently Traded Stocks," Journal of Finance, American Finance Association, vol. 51(4), pages 1405-1436, September.
    29. Kyle, Albert S, 1985. "Continuous Auctions and Insider Trading," Econometrica, Econometric Society, vol. 53(6), pages 1315-1335, November.
    30. Michael J. Fishman & Kathleen M. Hagerty, 1989. "Disclosure Decisions by Firms and the Competition for Price Efficiency," Journal of Finance, American Finance Association, vol. 44(3), pages 633-646, July.
    31. Jones, Jj, 1991. "Earnings Management During Import Relief Investigations," Journal of Accounting Research, Wiley Blackwell, vol. 29(2), pages 193-228.
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    33. Easley, David & O'Hara, Maureen, 1992. "Time and the Process of Security Price Adjustment," Journal of Finance, American Finance Association, vol. 47(2), pages 576-605, June.
    34. Asad Kausar & Richard J. Taffler & Christine Tan, 2009. "The Going‐Concern Market Anomaly," Journal of Accounting Research, Wiley Blackwell, vol. 47(1), pages 213-239, March.
    35. Easley, David & Kiefer, Nicholas M & O'Hara, Maureen, 1997. "One Day in the Life of a Very Common Stock," The Review of Financial Studies, Society for Financial Studies, vol. 10(3), pages 805-835.
    36. Healy, Paul M. & Palepu, Krishna G., 2001. "Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature," Journal of Accounting and Economics, Elsevier, vol. 31(1-3), pages 405-440, September.
    37. Akay, Ozgur (Ozzy) & Cyree, Ken B. & Griffiths, Mark D. & Winters, Drew B., 2012. "What does PIN identify? Evidence from the T-bill market," Journal of Financial Markets, Elsevier, vol. 15(1), pages 29-46.
    38. Bartley R. Danielsen & Robert A. Van Ness & Richard S. Warr, 2007. "Auditor Fees, Market Microstructure, and Firm Transparency," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 34(1-2), pages 202-221.
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    2. Carrera, Nieves & Mareque, Mercedes, 2023. "Does gender affect qualifying decisions? Evidence from public sector audits," Journal of Business Research, Elsevier, vol. 154(C).
    3. Hu, Jianxiong & Zou, Qing & Yin, Qianqian, 2023. "Research on the effect of ESG performance on stock price synchronicity: Empirical evidence from China's capital markets," Finance Research Letters, Elsevier, vol. 55(PA).

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