Do modified audit opinions for Shanghai listed firms convey heterogeneous information?

Donglin Pei*, Philip A. Hamill

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

10 Citations (Scopus)

Abstract

This study investigates market reactions to different types of modified audit opinions (MAOs) and unqualified audit opinion with explanatory notes, i.e. quasi-qualification - a unique feature of China's institutional environment. We find that quasi-qualifications contain more significant negative information than clean audit opinions, but less than that in other types of qualified audit opinions. Further, we provide evidence that audit opinions possess significant information heterogeneity in the Shanghai stock market.

Original languageEnglish
Pages (from-to)1-11
Number of pages11
JournalJournal of International Accounting, Auditing and Taxation
Volume22
Issue number1
DOIs
Publication statusPublished - 2013

Keywords

  • China
  • Quasi-qualification modified auditor opinions
  • Shanghai stock market

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