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The Investors Reaction to the Disclosure of Key Audit Matters: Empirical Evidence from Jordan

Author

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  • Mohammad Abdullah Fayad Altawalbeh
  • Mohammad Eid Sleem Alhajaya

Abstract

This study aims to examine the investors reaction to the disclosure of key audit matters (KAMs) as mandated by ISA701, the study’s sample consisted of all the (195) public shareholding companies listed in Amman Stock Exchange (ASE) as at the end of 2017, and through which we have conducted a manual content analysis to tracing the auditor practices in reporting KAMs, the final sample consisted of (128) public shareholding companies and for which we used the event study test to examine the study hypothesis, results revealed that the disclosure of KAMs has significantly affected the investors decisions measured by the abnormal trading volume, Our findings suggest that the mandating of KAM’s disclosure has informational value to the investors.

Suggested Citation

  • Mohammad Abdullah Fayad Altawalbeh & Mohammad Eid Sleem Alhajaya, 2019. "The Investors Reaction to the Disclosure of Key Audit Matters: Empirical Evidence from Jordan," International Business Research, Canadian Center of Science and Education, vol. 12(3), pages 50-57, March.
    • Handle: RePEc:ibn:ibrjnl:v:12:y:2019:i:3:p:50-57
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    More about this item

    Keywords

    key audit matters; international standards on auditing; audit report; Amman stock exchange;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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