IDEAS home Printed from https://ideas.repec.org/a/bla/acctfi/v65y2025i1p753-772.html
   My bibliography  Save this article

Does increased monitoring enhance the credibility of financial reports? Evidence of auditing semi‐annual financial statements

Author

Listed:
  • Hui‐Yu Hsiao
  • Wu‐Po Liu
  • Szu‐Jung Wu

Abstract

Due to several financial scandals of Taiwan‐listed foreign firms (known as KY firms), the Taiwan Financial Supervisory Commission requires KY firms to disclose audited semi‐annual financial statements, which were reviewed before. Using the event study, we find higher cumulative abnormal returns for KY firms around the regulation announcement, suggesting the market's positive attitude towards the increase in the assurance level of semi‐annual financial statements. In addition, we apply a difference‐in‐differences test and find the improvement in earnings response coefficients, showing the market's increased perception of audit quality. Our findings should be of interest to regulators, practitioners, and researchers.

Suggested Citation

  • Hui‐Yu Hsiao & Wu‐Po Liu & Szu‐Jung Wu, 2025. "Does increased monitoring enhance the credibility of financial reports? Evidence of auditing semi‐annual financial statements," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 65(1), pages 753-772, March.
    • Handle: RePEc:bla:acctfi:v:65:y:2025:i:1:p:753-772
    DOI: 10.1111/acfi.13347
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/acfi.13347
    Download Restriction: no
    File URL: https://libkey.io/10.1111/acfi.13347?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:acctfi:v:65:y:2025:i:1:p:753-772. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/aaanzea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.