A Research On The Market Information Reaction Of Going-Concern Audit Opinions

One of the Outside audit's important founctions is deliver information to the users, because it can reduce the outside investor and inside manager's information asymmetry. Whereas the audit opinion is the important carrier of the information delivery. As an out-report and nonroutining audit program, Going-concern audit opinion has its special essence, it rests on the present finance condition and operation condition to make the audit judgment for the future going concern ability. When the investor base on the future predict of profit ability to evaluates the company's value, the company's future going concern ability highly relevant to the investor's behalf. On the other hand, If the auditor mention of company's going concern uncertainties in the report, it lies in pre-cautioning the investor to pay attention to the invest risk. So the present study want to investgate whether the going concern report elaborate its warning founction.So, Using data from A Shares from 1997 to 2007, with event study, this paper first investigate if the Going-concern opinion can give rise to the reaction of investor. Then we compare the market reaction of going-concern opinion with clean opinion and other qualified opinion. Our results is different to the foreign research: the market reaction only have significant distinction before the disclose of audit report in small windows, and market doesn't distinct the Going-concern opinion with other qualified opinion. The most important reason is that our stock market lack good bankruptcy system. So lead to Going-concern opinion can't make the warning founction in our stock market, Also it distort the investor's ration reaction.