An Empirical Study Of The Securities Market Reaction To Audit Opinions

The audit opinion is important linkages between the audited entity and the CPA，It hasbeen the important object of academic research. Theoretically speaking, investors tomeasure the business enterprise through the audit opinion issued by the Institute ofCertified Public Accountants, then,making decisions about which stock trade-offs, soCertified public accountants audit opinions actor role can’t be ignored.But, in reality, an audit opinion on the stock market whether our theoretical response,and how this reaction? About the market reaction of the securities markets of the auditopinion, is not a new topic, the research literature to obtain a unanimous conclusion, theauthor through the review and summary of the literature found that it is caused due to themethod chosen by various scholars in research and the selected samples is different. Andregulated by the Ministry of Finance from January1,2011, the first batch of accountingstandards implemented universal classification standard enterprise, began to use the newgeneric classification criteria. The theory that the common classification standards forcorporate accounting standards adopted not only enables companies to reduce workloadand improve work efficiency, but also enable investors to understand the financial positionof the enterprise faster. But in fact, for the adoption of the Universal ClassificationStandard is reached the desired effect? No one argued. So, this article has been commonclassification standards of the Accounting Standards for Business Enterprises perspectiveto study the response of the securities market for audit opinions.First, the literature and different types of factors affect the audit opinion auditopinion in the reaction of the capital market, the literature review and comment. Which theaudit opinion literature from firm size, structural characteristics of corporate governance,financial condition, audit fees, accounting firm to review change audit opinion; Marketreaction in the literature review, in accordance with the different types of audit opinionsmodified audit opinions into an unqualified opinion, qualified opinion, adverse opinion,refused to express an opinion on the securities market reaction to do a review of theliterature and combing. Second, the audit opinion in the market reaction in the stock market economics explain. This part of the main signal transmission theory and theefficient market theory to explain the relationship between the stock market reaction toaudit opinions. The perspective of this research is to find out and file out according to theMinistry of Finance. Again, use the sample data to verify the to generic classificationcriteria based on the Accounting Standards for Business Enterprises perspective, the stockmarket reaction to the audit opinion. In the third part of the theoretical basis of the analysisabove, we propose two hypotheses, and to test the hypothesis by collecting and collatingthe2009and2010data, the use of excess returns and multiple regression method. The testresults found that the securities market have a negative response to the non-standard auditopinion, after the adoption of the common classification standards of the AccountingStandards for Business Enterprises, the investors can faster access to business information,so they can make decisions, that the stock market for General classification adoptionreaction. Finally, the combination of text theoretical analysis, empirical testing andresearch conclusion, a few normal recommendations: Continue to expand the scope of thecommon classification standards of the Accounting Standards for Business Enterprises,control Annual Report information leaked ahead of phenomena and to improve thereliability of information disclosure. And on the basis of analysis of this study, thedirection of further research.