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

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  • Pei, Donglin
  • Hamill, Philip A.

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.

Suggested Citation

  • Pei, Donglin & Hamill, Philip A., 2013. "Do modified audit opinions for Shanghai listed firms convey heterogeneous information?," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 22(1), pages 1-11.
    • Handle: RePEc:eee:jiaata:v:22:y:2013:i:1:p:1-11
    DOI: 10.1016/j.intaccaudtax.2013.02.004
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    References listed on IDEAS

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    2. Sandro Brunelli & Chiara Carlino & Rosella Castellano & Alessandro Giosi, 2021. "Going concern modifications and related disclosures in the Italian stock market: do regulatory improvements help investors in capturing financial distress?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(2), pages 433-473, June.
    3. Sandro Brunelli & Francesco Venuti & Thomas Niederkofler & Camilla Falivena, 2024. "Financial distress, auditors’ going concern modification (GCM) and investors’ reaction in a concentrated ownership environment: new evidence from the Italian stock market," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 21(2), pages 313-339, June.

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