How Do Investors Respond to Disclosure of Audit Quality Indicators?

被引：6

作者：

Brown, J. Owen ^{[1
]}

Popova, Velina K. ^{[2
]}

机构：

[1] Baylor Univ, Waco, TX 76798 USA

[2] Kennesaw State Univ, Kennesaw, GA 30144 USA

来源：

AUDITING-A JOURNAL OF PRACTICE & THEORY | 2019年 / 38卷 / 04期

关键词：

audit quality; audit quality indicators; investors; disclosure; affective reaction; REPORTING MODEL; NEGATIVITY BIAS; COMMITMENT; RESPONSIBILITY; IMPACT; ANTECEDENTS; CONTINUANCE; JUDGMENTS; CHANNELS;

D O I：

10.2308/ajpt-52417

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

Both U.S. and international standard setters have sponsored initiatives to develop a reliable portfolio of audit quality indicators (AQIs). We conduct two experiments to examine how investors respond to receiving auditor-disclosed AQIs. We find that investors experience a stronger negative affective reaction toward the auditors when receiving a negative-trending AQI portfolio compared to receiving a positive trend of AQIs or when no AQIs are disclosed. In turn, investors receiving a negative-trending AQI portfolio are less likely to support auditor ratification and choose to voluntarily decrease their investment in the company. Results also indicate that including additional qualitative context within the disclosure increases investor support for auditor ratification when accompanying a positive-trending AQI portfolio but has no additional effect on investor decision-making for a negative-trending AQI portfolio. Our findings help to advance the dialogue on AQIs and suggest a possible path forward for disseminating AQIs to interested stakeholders.

引用

页码：31 / 53

页数：23

共 50 条

[1] How do retail investors respond to summary disclosure? Evidence from mutual fund factsheets
Darendeli, Alper
[J]. REVIEW OF ACCOUNTING STUDIES, 2024,
[2] How Do Investors Respond to Targets' Interim Earnings?
Gunn, Rita
Pierce, Spencer
Romney, Miles
[J]. ACCOUNTING REVIEW, 2023, 98 (07): : 211 - 238
[3] How do institutional investors respond to patent announcements?
Lantushenko, Viktoriya
Nelling, Edward F.
[J]. MANAGERIAL FINANCE, 2018, 44 (12) : 1446 - 1465
[4] Do Investors Respond to Explanatory Language Included in Unqualified Audit Reports?
Czerney, Keith
Schmidt, Jaime J.
Thompson, Anne M.
[J]. CONTEMPORARY ACCOUNTING RESEARCH, 2019, 36 (01) : 198 - 229
[5] Showcasing Audit Quality through Voluntary Public Disclosure of Audit Quality Indicators
Brown, J. Owen
Popova, Velina K.
[J]. CURRENT ISSUES IN AUDITING, 2021, 15 (02): : P17 - P26
[6] How do creditors respond to disclosure quality? Evidence from corporate dividend payouts
Byrne, Julie
O'Connor, Thomas
[J]. JOURNAL OF INTERNATIONAL FINANCIAL MARKETS INSTITUTIONS & MONEY, 2017, 49 : 154 - 172
[7] How do investors respond to Green Company Awards in China?
Lyon, Thomas
Lu, Yao
Shi, Xinzheng
Yin, Qie
[J]. ECOLOGICAL ECONOMICS, 2013, 94 : 1 - 8
[8] Do investors value audit quality of complex estimates?
Chen, Bingyi
[J]. ADVANCES IN ACCOUNTING, 2022, 57
[9] How Do Disclosure Repetition and Interactivity Influence Investors' Judgments?
Brown, Nerissa C.
Gale, Brian T.
Grant, Stephanie M.
[J]. JOURNAL OF ACCOUNTING RESEARCH, 2022, 60 (05) : 1775 - 1811
[10] How Do Audit Offices Respond to Audit Fee Pressure? Evidence of Increased Focus on Nonaudit Services and their Impact on Audit Quality
Beardsley, Erik L.
Lassila, Dennis R.
Omer, Thomas C.
[J]. CONTEMPORARY ACCOUNTING RESEARCH, 2019, 36 (02) : 999 - 1027

← 1 2 3 4 5 →