Research On The Market Reaction Of A+H Share Listed Companies’ Disclosure Of Key Audit Matters ——Taking Great Wall Motors As An Example

The generation of auditing system is to maintain the order of capital market,which originates from the separation of enterprise management right and ownership.The audit report is an important medium for transmitting information.With the continuous development,the information provided by the original audit report is not enough,and the format of the old audit report is relatively fixed.need.The demand of users determines the supply of audit reports,so the reform of audit reports will directly affect the capital market.On December 23,2016,the Ministry of Finance of my country officially issued a notice on printing and distributing 12 standards including the Auditing Standards No."Guideline 1504").Among them,the core part is to change the model of the old audit report and add a section on key audit matters,which has changed the shortcomings of being too templated in the past.In this context,this paper takes Great Wall Motor as the case study object,uses the event study method to analyze the key audit matters disclosed in the audit report released by Great Wall Motor on March24,2017,and proposes relevant countermeasures for the case.and general recommendations.Based on the sorted literature,this paper firstly selects the event research method,takes the key audit matters disclosed by Great Wall Motors in the automobile manufacturing industry as the research events,and selects the window period to study the changes in market data.At the same time,a vertical comparison sample and a horizontal comparison sample were respectively set up to analyze the market reaction of the key audit matter section of Great Wall Motors and the implementation effect of the new auditing standards in different markets.Through comparative research and analysis,it is found that:（1）Great Wall Motor added the key audit items in the first year with information content.Comparing with the undisclosed samples of Great Wall Motors in previous years and the undisclosed samples of the same industry in the same year,the disclosed samples have a stronger market reaction,and according to the market reaction,it can be found that the market can clearly distinguish the difference between disclosed and undisclosed.（2）The disclosure of key audit matters has triggered relatively positive reactions in the market.After the disclosure,all share prices tended to rise,and the fluctuation range was also larger,indicating that key audit matters could affect investors to a certain extent,and investors also responded relatively positively based on the information obtained.（3）The key audit matters have aroused market reactions in both A shares and H shares,and are more positive and stronger in H shares than in A shares.This paper finally concludes that the addition of key audit items in the audit report has achieved certain expected results.In order to further strengthen the information content of the audit report,consolidate and effectively promote the reform of standards And report users put forward relevant suggestions from four aspects.