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Stock Market Reaction to Auditor Opinion

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dc.contributor.author Pieris, H.T.D.
dc.contributor.author Kawshalya, M.D.P.
dc.date.accessioned 2021-02-19T10:33:02Z
dc.date.available 2021-02-19T10:33:02Z
dc.date.issued 2020
dc.identifier.citation Pieris, H.T.D., Kawshalya, M.D.P. (2020). Stock Market Reaction to Auditor Opinion. In : 6th International Conference for Accounting Researchers and Educators, 2020. Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka, p.81. en_US
dc.identifier.uri http://repository.kln.ac.lk/handle/123456789/22080
dc.description.abstract The audit report is the medium of communication between the auditor and the users of the audit report, this report must be understandable, objective, and accepted by the users as a relevant source of information. Therefore, this research focuses on identifying the impact of auditor’s opinion on the share prices of listed companies in Sri Lanka. Due to the importance of the research area, in every region in the world, studies have taken place. However, results include certain contradictory conclusions. Therefore, the Sri Lankan capital market, CSE is an ideal research site to conduct an investigation to find out whether the information content on the auditor’s report does have an effect on an investor’s decision-making process. Accordingly, the purpose of this study is to investigate the impact of audit qualification on the share prices of listed companies in the CSE, untested market, and environment to test whether the value relevance of information content of the quailed audit report exists. To test the hypothesis, the short event study methodology, which is focusing on short event window was used to determine the market reaction to audit qualifications. The sample consisted with 40 firm-year observations from 30 unique companies listed in Colombo Stock Exchange between 2015 to 2019. It has been considered only the first-time audit qualifications to test the impact of new information. This study is expected to be important to the audit profession, investors, creditors, and other general users, as it is expected to provide them with useful information. Further, makes it possible to identify the investor's reaction over audit qualifications and evaluate the speed of response. en_US
dc.publisher Department of Accountancy, Faculty of Commerce and Management Studies, University of Kelaniya en_US
dc.subject Audit report, Colombo Stock Exchange, Market reaction, Share price, Sri Lanka en_US
dc.title Stock Market Reaction to Auditor Opinion en_US


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