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Does Using the Extended Audit Report Decrease Information Asymmetry in Family Firms?

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  • Nien-Su Shih

Abstract

The purpose of this study is to examine impact of using the extended audit report (EAR) on the information asymmetry that exists among the shareholders of family firms as compared to non-family firms during the period surrounding the announcement of an audit report. The results show that the adoption of the EAR alleviates the problem of information asymmetry related to family firms. Furthermore, the results show that the inclusion of key audit matters in audit reports also decreases the information asymmetry related to family firms. JEL classification numbers: G32, M42.

Suggested Citation

  • Nien-Su Shih, 2024. "Does Using the Extended Audit Report Decrease Information Asymmetry in Family Firms?," Journal of Applied Finance & Banking, SCIENPRESS Ltd, vol. 14(1), pages 1-3.
    • Handle: RePEc:spt:apfiba:v:14:y:2024:i:1:f:14_1_3
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    References listed on IDEAS

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    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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