Informativeness of the expanded audit report: Evidence from China

This study investigates whether the expanded audit report is informative to investors in the setting of an emerging economy. Using the recent staggered adoption of the expanded audit report for A+H and A share firms in China, we find robust evidence that abnormal trading volume and earnings response...

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Main Authors: GOH, Beng Wee, LEE, Jimmy, LI, Dan, WANG, Muzhi
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2019
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Online Access:https://ink.library.smu.edu.sg/soa_research/1853
https://ink.library.smu.edu.sg/context/soa_research/article/2880/viewcontent/Manuscript_submited_to_AJPT.pdf
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Institution: Singapore Management University
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spelling sg-smu-ink.soa_research-28802021-01-22T06:26:13Z Informativeness of the expanded audit report: Evidence from China GOH, Beng Wee LEE, Jimmy LI, Dan WANG, Muzhi This study investigates whether the expanded audit report is informative to investors in the setting of an emerging economy. Using the recent staggered adoption of the expanded audit report for A+H and A share firms in China, we find robust evidence that abnormal trading volume and earnings response coefficients are higher, and stock price synchronicity are lower, in the post-adoption periods than in the pre-adoption periods. In additional tests, we find that the expanded audit report is more informative for non-State Owned Enterprises and for firms with higher information asymmetry. Overall, our study documents systematic evidence that the expanded audit report is incrementally informative to investors in an emerging economy. 2019-08-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/soa_research/1853 https://ink.library.smu.edu.sg/context/soa_research/article/2880/viewcontent/Manuscript_submited_to_AJPT.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Accountancy eng Institutional Knowledge at Singapore Management University expanded audit report market reaction informativeness earnings response coefficient price synchronicity Accounting Asian Studies
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic expanded audit report
market reaction
informativeness
earnings response coefficient
price synchronicity
Accounting
Asian Studies
spellingShingle expanded audit report
market reaction
informativeness
earnings response coefficient
price synchronicity
Accounting
Asian Studies
GOH, Beng Wee
LEE, Jimmy
LI, Dan
WANG, Muzhi
Informativeness of the expanded audit report: Evidence from China
description This study investigates whether the expanded audit report is informative to investors in the setting of an emerging economy. Using the recent staggered adoption of the expanded audit report for A+H and A share firms in China, we find robust evidence that abnormal trading volume and earnings response coefficients are higher, and stock price synchronicity are lower, in the post-adoption periods than in the pre-adoption periods. In additional tests, we find that the expanded audit report is more informative for non-State Owned Enterprises and for firms with higher information asymmetry. Overall, our study documents systematic evidence that the expanded audit report is incrementally informative to investors in an emerging economy.
format text
author GOH, Beng Wee
LEE, Jimmy
LI, Dan
WANG, Muzhi
author_facet GOH, Beng Wee
LEE, Jimmy
LI, Dan
WANG, Muzhi
author_sort GOH, Beng Wee
title Informativeness of the expanded audit report: Evidence from China
title_short Informativeness of the expanded audit report: Evidence from China
title_full Informativeness of the expanded audit report: Evidence from China
title_fullStr Informativeness of the expanded audit report: Evidence from China
title_full_unstemmed Informativeness of the expanded audit report: Evidence from China
title_sort informativeness of the expanded audit report: evidence from china
publisher Institutional Knowledge at Singapore Management University
publishDate 2019
url https://ink.library.smu.edu.sg/soa_research/1853
https://ink.library.smu.edu.sg/context/soa_research/article/2880/viewcontent/Manuscript_submited_to_AJPT.pdf
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