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Do modified audit opinions for Shanghai listed firms convey heterogeneous information?

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  • Pei, Donglin
  • Hamill, Philip A.

Abstract

This study investigates market reactions to different types of modified audit opinions (MAOs) and unqualified audit opinion with explanatory notes, i.e. quasi-qualification – a unique feature of China's institutional environment. We find that quasi-qualifications contain more significant negative information than clean audit opinions, but less than that in other types of qualified audit opinions. Further, we provide evidence that audit opinions possess significant information heterogeneity in the Shanghai stock market.

Suggested Citation

  • Pei, Donglin & Hamill, Philip A., 2013. "Do modified audit opinions for Shanghai listed firms convey heterogeneous information?," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 22(1), pages 1-11.
    • Handle: RePEc:eee:jiaata:v:22:y:2013:i:1:p:1-11
    DOI: 10.1016/j.intaccaudtax.2013.02.004
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