TRACKS: Audit Quality, Earnings, and the Shanghai Stock Market Reaction

Ferdinand A. Gul; Sunny Y. J. Sun; Judy S. L. Tsui

doi:10.1177/0148558X0301800306

Back

TRACKS: Audit Quality, Earnings, and the Shanghai Stock Market Reaction

Journal article

Peer reviewed

TRACKS: Audit Quality, Earnings, and the Shanghai Stock Market Reaction

Ferdinand A. Gul, Sunny Y. J. Sun and Judy S. L. Tsui

Journal of Accounting Auditing and Finance, Vol.18(3), pp.411-427

2003

DOI: https://doi.org/10.1177/0148558X0301800306

Files and links (1)

url

https://doi.org/10.1177/0148558X0301800306View

Published Version

Abstract

This study examines whether audit quality in the Shanghai Stock Exchange affects the positive association between change in earnings per share and cumulative abnormal return (CAR). Regression results using 659 Shanghai listed company observations in 1996 and 1997 show that the positive market reaction to increase in earnings is stronger for firms audited by high quality auditors. A broad conclusion of the study is that audit quality is playing an important role in China and that investors in the Shanghai market differentiate between high quality versus low quality auditors.

Details

Title: TRACKS: Audit Quality, Earnings, and the Shanghai Stock Market Reaction
Authors: Ferdinand A. Gul (Author) - City University of Hong Kong
Sunny Y. J. Sun (Author) - City University of Hong Kong
Judy S. L. Tsui (Author) - Hong Kong Polytechnic University
Publication details: Journal of Accounting Auditing and Finance, Vol.18(3), pp.411-427
Publisher: Sage Publications, Inc.
DOI: 10.1177/0148558X0301800306
ISSN: 2160-4061
Organisation Unit: University of the Sunshine Coast, Queensland; School of Business and Creative Industries
Language: English
Record Identifier: 99678894202621
Output Type: Journal article

Metrics

10 Record Views