Stock price contagion effects of low-quality audits at the individual audit partner level

• Main Authors: GUL, Ferdinand A., LIM, Chee Yeow, WANG, Kun, XU, Yanping
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2019
• Subjects: audit partner; audit quality; price contagion effects; market reactions; Accounting
• Online Access: https://ink.library.smu.edu.sg/soa_research/1801; https://ink.library.smu.edu.sg/context/soa_research/article/2828/viewcontent/stock_price_contagion_effects.pdf
• Institution: Singapore Management University

We use Chinese audit partner data to show that partners associated with financial reporting fraudinduce share price declines among non-fraudulent firms audited by the same audit partners. In cross-sectionalanalyses, we find that share price declines are more pronounced when low-quality partners (LQP...