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Voluntary disclosure of auditor information and stock price crash risk

Author

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  • Wu, Bin
  • Liu, Yunjing
  • Zhang, Min

Abstract

Using the unique data on auditor qualification certificate disclosure in China, this study investigates the association between the voluntary disclosure of individual auditor information and stock price crash risk. We find that voluntary disclosure of auditor qualification certificates is negatively associated with future stock price crash risk using a sample of 11,302 company-year observations from 2012 to 2018. The observed effects mainly exist in companies with high analyst forecast divergence, low stock liquidity, or low institutional ownership. This study sheds light on the relationship between auditor information disclosure and stock price crash risk and extends the literature on voluntary disclosure.

Suggested Citation

  • Wu, Bin & Liu, Yunjing & Zhang, Min, 2025. "Voluntary disclosure of auditor information and stock price crash risk," Finance Research Letters, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:finlet:v:81:y:2025:i:c:s1544612325001667
    DOI: 10.1016/j.frl.2025.106902
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    References listed on IDEAS

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