Empirical Study On The Market Reaction To Audit Opinions Based On Auditing Standards Changes

The vital role of capital market for enterprise development has been well known. The healthy development of the capital market, relates to the development destiny of the listed company, even relates to the national economic development. And in order to the justice, efficiency and realize resource optimal allocation of capital market, certified public accountants who as independent third-party provide verification and supervision for the fairness and justice of financial report, the verification results perform as the issue of financial statements auditing opinions. The issue of financial statements audit opinions, provide important reference for the investors’ investment decisions, which have a profound impact on the entire capital market.The development of auditing market cannot be achieved without the continuous improvement of the auditing standards. From drafting the independent auditing standards in1994, the auditing standards in our country has gone through three major changes. Auditing standards in the constant process of revision reflects seeking convergence with international auditing standards at the same time to adapt to the characteristics of Chinese capital market development status, thereby enhancing the reference of audit opinions. In this situation, the capital market reaction to audit opinions issued by CPA, and characteristic of its market reaction in standards change process are the focus of this dissertation.This dissertation reviews contents and characteristics of all previous auditing standards changes since2002, and analysis these changes will produce what kind of impact to our auditing market and capital market. In the empirical stage of this dissertation, selects listed companies issued by non-standard audit opinions from the A-share of Shanghai Stock Exchange from2002to2011as research samples, uses the method of cumulative abnormal return to analyze the cumulative abnormal return between the study samples and the control samples, the dissertation also uses the method of multiple regression analysis influence factors of the cumulative abnormal return between the study samples and the control samples at different stages. The research conclusions show that the cumulative abnormal return mean of the study samples have dropped before the date of signing the audit report; different non-standard audit opinions have different market reactions; the influence of audit opinions to the cumulative abnormal return witnesses a gradual strengthening characteristics in the process of auditing standards changes, and non-standard auditing opinions’negative influence on the cumulative abnormal return are more intense.