Research To Audit Opinion Of The Market Reaction

In order to solve the problem of asymmetric information on the securities market, listed companies need to disclose their financial information regularly, in order to help the investor have more known of the company, and to help investors at an informational disadvantage, make better decisions. In order to ensure the authenticity and credibility of the financial reports of listed companies, you need an independent third party, that is independent of the listed companies and investors, the to check the quality of financial reports of listed companies, while the CPA profession as the industry Police to doing my part to assume the responsibilities of its audit report issued to investors to make investment decisions has important reference value. And a rational investor confidence in the extent to which the audit report, audit report depends on the quality of investors, as well as to determine the nature of listed companies. In this paper, the theory of in-depth analysis of the audit opinion decision usefulness to investors, inspection audit opinion on the decision-making behavior of information users, the extent, on the basis of the system on the basis of background and research results, the corresponding policy recommendations to promote success of information users, decision-making to ensure that resource allocation function of the stock market.This paper reviews the market response to the audit opinion at home and abroad related literature, analysis of the type and mechanism of the audit opinion, and from the principal-agent theory, insurance theory and signaling theory point of view of the audit opinion to investors decision usefulness, and then combined with features of China's listed companies, capital market environment and the background of the existing system is proposed hypothesis of this study to our 2005-2008 A-share listed companies as samples, to the cumulative abnormal returns as the market alternative response variables, the integrated use of case studies and multiple regression analysis were the following empirical studies:first, the variable descriptive statistics; followed by the average excess returns and cumulative abnormal returns as the observation variables, listed company financial 20 days after publication of the report before the event period Comparative observation using event study sample companies (non-standard audit opinions issued by type by listed companies), and matched samples of companies (to be issued standard unqualified audit opinion of the listed company), the average abnormal returns, cumulative abnormal returns trend similarities and differences; then the cumulative abnormal returns as the market response to the audit opinion of alternative variables, using multiple regression analysis, further examination of the audit opinion on the degree of influence investor decision-making behavior; Finally, test the robustness of regression results.From the empirical research we obtained the following conclusions:(1) audit opinion with information content. Tested by the control sample group found that before and after a short time window of the listed companies announced their financial reports, either standard or non-standard unqualified audit opinions have information content, and standard audit opinion with a positive market reaction, non-standard audit opinions with a negative market reaction; (2)compared to the government-controlled listed companies, the non-government-controlled listed companies which were issued by non-standard audit opinions, stock price will be significantly reduced in a short time window; (3) non-government-controlled company with non-standard audit opinions, in a short time window its shock price is significantly influenced by the institutional environment. Namely, in the high levels process of market areas, this negative relationship is more strongly; Finally, three robust tests of the models, and basic maintenance of the original conclusion, this study shows the robustness of conclusions to a certain extent.