Auditor’s Opinion, Auditor’s Size, and Value Relevance of Accounting Information

Abstract

The main Purpose of this research is to study the effect of auditor’s opinion and audit firm size on the value relevance of accounting information of the companies listed on the Colombo stock exchange during the years 2018-2021. The feature of financial information to significantly affect the investors’ decision-making process, reflected by the stock price or stock return, is called value relevance The research includes a sample of 107 companies’ observations for 4 years drawn from the listed companies, and the research hypotheses were analyzed using multivariate regression model based on panel data. Data are hand collected from the annual reports of the companies. Financial institutions, banking, finance, and investment firms are also eliminated since their accounting and reporting environments differ from those in other industries.