AN INVESTIGATION OF THE EFFECT OF QUALIFIED AUDIT OPINIONS ON THE TRADING VOLUME AND BID‐ASK SPREAD OF OVER‐THE‐COUNTER FIRMS
This paper investigates the information content of qualified audit opinions. The announcement of a qualified audit opinion is expected to cause investors' beliefs about the firm to converge. This increase in consensus would be evidenced by an unexpected decrease in trading volume surrounding th...
Gespeichert in:
| Veröffentlicht in: | Review of financial economics 1993-10, Vol.3 (1), p.41-50 |
|---|---|
| Hauptverfasser: | , |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 50 |
|---|---|
| container_issue | 1 |
| container_start_page | 41 |
| container_title | Review of financial economics |
| container_volume | 3 |
| creator | Ameen, Elsie C. Guffey, Daryl M. |
| description | This paper investigates the information content of qualified audit opinions. The announcement of a qualified audit opinion is expected to cause investors' beliefs about the firm to converge. This increase in consensus would be evidenced by an unexpected decrease in trading volume surrounding the initial public announcement. Proportional bid‐ask spread changes are used to test for changes in information asymmetry due to the announcement.
After controlling for the effects of earnings announcements, a significant trading volume reaction is found in the week of the announcement for a sample of firms traded over the counter. No significant difference in proportional bid‐ask spread is found. The results suggest that qualified audit opinions do, indeed, convey information to the investing public and this information results in homogeneous beliefs about the firm. |
| doi_str_mv | 10.1002/j.1873-5924.1993.tb00571.x |
| format | Article |
| fullrecord | <record><control><sourceid>gale_proqu</sourceid><recordid>TN_cdi_proquest_journals_196393877</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><galeid>A17333328</galeid><sourcerecordid>A17333328</sourcerecordid><originalsourceid>FETCH-LOGICAL-c3571-a2ca89a45cfc6437be993adf9f21173b2a69b088f39e130dddbd59cd68f4873b3</originalsourceid><addsrcrecordid>eNqVkc1u1DAQxyMEEqXwDla5kmDH-bA5YTbO1mKblHzs1XISp9rVdlOSrWhvSH2BPiNPwoStOJUDY8kej38z9vjvOGcEewRj_-PWIyymbsj9wCOcU-_QYBzGxLt74Zz8PXoJPg6ZSynGr50307TFYBEjJ86DyJDK1rKs1FJUKs9QnqLqXCKZpnJRzbtvtVipVMkEiTpRELpUGYAlAngmq0IkKluidb6qLyQSWYK-qOTXz0dRfkXlZSFFMpfJ17KAIGTAvMjrrJIFSlVxUb51XvVmN9l3T-upU6eyWpy7q3ypFmLlthRaco3fGsZNELZ9GwU0biw0bLqe9z4hMW18E_EGM9ZTbgnFXdc1XcjbLmJ9AD_R0FPn7Fj3Zhy-39rpoLfD7biHKzXhEeWUxTFA7_8J-TzkOObBTH04UldmZ_Vm3w-H0bRXdm9Hsxv2tt9AWMCrwHwGuPsMDqOz15v2Of7TkW_HYZpG2-ubcXNtxntNsJ6F11s9q6tndfUsvH4SXt9B8udj8g8oev8fmbpI5R-X_gbu6qzy</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>1295907947</pqid></control><display><type>article</type><title>AN INVESTIGATION OF THE EFFECT OF QUALIFIED AUDIT OPINIONS ON THE TRADING VOLUME AND BID‐ASK SPREAD OF OVER‐THE‐COUNTER FIRMS</title><source>Alma/SFX Local Collection</source><source>Periodicals Index Online</source><creator>Ameen, Elsie C. ; Guffey, Daryl M.</creator><creatorcontrib>Ameen, Elsie C. ; Guffey, Daryl M.</creatorcontrib><description>This paper investigates the information content of qualified audit opinions. The announcement of a qualified audit opinion is expected to cause investors' beliefs about the firm to converge. This increase in consensus would be evidenced by an unexpected decrease in trading volume surrounding the initial public announcement. Proportional bid‐ask spread changes are used to test for changes in information asymmetry due to the announcement.
After controlling for the effects of earnings announcements, a significant trading volume reaction is found in the week of the announcement for a sample of firms traded over the counter. No significant difference in proportional bid‐ask spread is found. The results suggest that qualified audit opinions do, indeed, convey information to the investing public and this information results in homogeneous beliefs about the firm.</description><identifier>ISSN: 1058-3300</identifier><identifier>EISSN: 1873-5924</identifier><identifier>DOI: 10.1002/j.1873-5924.1993.tb00571.x</identifier><language>eng</language><publisher>New Orleans, La: Elsevier Advanced Technology Publications</publisher><subject>Audits ; Corporation reports ; Disclosure (Securities law) ; Economic impact ; Information dissemination ; Over the counter trading ; Over-the-counter markets ; Public opinion ; Securities markets ; Statistical analysis ; Stock prices ; Studies</subject><ispartof>Review of financial economics, 1993-10, Vol.3 (1), p.41-50</ispartof><rights>1993 University of New Orleans</rights><rights>COPYRIGHT 1993 Elsevier Advanced Technology Publications</rights><rights>Copyright Elsevier Science Ltd. Fall 1993/Spring 1994</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c3571-a2ca89a45cfc6437be993adf9f21173b2a69b088f39e130dddbd59cd68f4873b3</citedby><cites>FETCH-LOGICAL-c3571-a2ca89a45cfc6437be993adf9f21173b2a69b088f39e130dddbd59cd68f4873b3</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><link.rule.ids>314,776,780,27846,27901,27902</link.rule.ids></links><search><creatorcontrib>Ameen, Elsie C.</creatorcontrib><creatorcontrib>Guffey, Daryl M.</creatorcontrib><title>AN INVESTIGATION OF THE EFFECT OF QUALIFIED AUDIT OPINIONS ON THE TRADING VOLUME AND BID‐ASK SPREAD OF OVER‐THE‐COUNTER FIRMS</title><title>Review of financial economics</title><description>This paper investigates the information content of qualified audit opinions. The announcement of a qualified audit opinion is expected to cause investors' beliefs about the firm to converge. This increase in consensus would be evidenced by an unexpected decrease in trading volume surrounding the initial public announcement. Proportional bid‐ask spread changes are used to test for changes in information asymmetry due to the announcement.
After controlling for the effects of earnings announcements, a significant trading volume reaction is found in the week of the announcement for a sample of firms traded over the counter. No significant difference in proportional bid‐ask spread is found. The results suggest that qualified audit opinions do, indeed, convey information to the investing public and this information results in homogeneous beliefs about the firm.</description><subject>Audits</subject><subject>Corporation reports</subject><subject>Disclosure (Securities law)</subject><subject>Economic impact</subject><subject>Information dissemination</subject><subject>Over the counter trading</subject><subject>Over-the-counter markets</subject><subject>Public opinion</subject><subject>Securities markets</subject><subject>Statistical analysis</subject><subject>Stock prices</subject><subject>Studies</subject><issn>1058-3300</issn><issn>1873-5924</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>1993</creationdate><recordtype>article</recordtype><sourceid>0R3</sourceid><sourceid>ACFII</sourceid><sourceid>HYQOX</sourceid><sourceid>K30</sourceid><sourceid>~OC</sourceid><sourceid>~PJ</sourceid><recordid>eNqVkc1u1DAQxyMEEqXwDla5kmDH-bA5YTbO1mKblHzs1XISp9rVdlOSrWhvSH2BPiNPwoStOJUDY8kej38z9vjvOGcEewRj_-PWIyymbsj9wCOcU-_QYBzGxLt74Zz8PXoJPg6ZSynGr50307TFYBEjJ86DyJDK1rKs1FJUKs9QnqLqXCKZpnJRzbtvtVipVMkEiTpRELpUGYAlAngmq0IkKluidb6qLyQSWYK-qOTXz0dRfkXlZSFFMpfJ17KAIGTAvMjrrJIFSlVxUb51XvVmN9l3T-upU6eyWpy7q3ypFmLlthRaco3fGsZNELZ9GwU0biw0bLqe9z4hMW18E_EGM9ZTbgnFXdc1XcjbLmJ9AD_R0FPn7Fj3Zhy-39rpoLfD7biHKzXhEeWUxTFA7_8J-TzkOObBTH04UldmZ_Vm3w-H0bRXdm9Hsxv2tt9AWMCrwHwGuPsMDqOz15v2Of7TkW_HYZpG2-ubcXNtxntNsJ6F11s9q6tndfUsvH4SXt9B8udj8g8oev8fmbpI5R-X_gbu6qzy</recordid><startdate>19931001</startdate><enddate>19931001</enddate><creator>Ameen, Elsie C.</creator><creator>Guffey, Daryl M.</creator><general>Elsevier Advanced Technology Publications</general><general>University of New Orleans, Division of Business and Economic Research</general><general>Elsevier Science Ltd</general><scope>AAYXX</scope><scope>CITATION</scope><scope>0R3</scope><scope>ACFII</scope><scope>GHEHK</scope><scope>HYQOX</scope><scope>ICWRT</scope><scope>K30</scope><scope>PAAUG</scope><scope>PAWHS</scope><scope>PAWZZ</scope><scope>PAXOH</scope><scope>PBHAV</scope><scope>PBQSW</scope><scope>PBYQZ</scope><scope>PCIWU</scope><scope>PCMID</scope><scope>PCZJX</scope><scope>PDGRG</scope><scope>PDWWI</scope><scope>PETMR</scope><scope>PFVGT</scope><scope>PGXDX</scope><scope>PIHIL</scope><scope>PISVA</scope><scope>PJCTQ</scope><scope>PJTMS</scope><scope>PLCHJ</scope><scope>PMHAD</scope><scope>PNQDJ</scope><scope>POUND</scope><scope>PPLAD</scope><scope>PQAPC</scope><scope>PQCAN</scope><scope>PQCMW</scope><scope>PQEME</scope><scope>PQHKH</scope><scope>PQMID</scope><scope>PQNCT</scope><scope>PQNET</scope><scope>PQSCT</scope><scope>PQSET</scope><scope>PSVJG</scope><scope>PVMQY</scope><scope>PZGFC</scope><scope>SFNNT</scope><scope>~OB</scope><scope>~OC</scope><scope>~OG</scope><scope>~PJ</scope></search><sort><creationdate>19931001</creationdate><title>AN INVESTIGATION OF THE EFFECT OF QUALIFIED AUDIT OPINIONS ON THE TRADING VOLUME AND BID‐ASK SPREAD OF OVER‐THE‐COUNTER FIRMS</title><author>Ameen, Elsie C. ; Guffey, Daryl M.</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c3571-a2ca89a45cfc6437be993adf9f21173b2a69b088f39e130dddbd59cd68f4873b3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>1993</creationdate><topic>Audits</topic><topic>Corporation reports</topic><topic>Disclosure (Securities law)</topic><topic>Economic impact</topic><topic>Information dissemination</topic><topic>Over the counter trading</topic><topic>Over-the-counter markets</topic><topic>Public opinion</topic><topic>Securities markets</topic><topic>Statistical analysis</topic><topic>Stock prices</topic><topic>Studies</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Ameen, Elsie C.</creatorcontrib><creatorcontrib>Guffey, Daryl M.</creatorcontrib><collection>CrossRef</collection><collection>Periodicals Archive Online Collection 1.2</collection><collection>Periodicals Archive Online Foundation Collection 1 (2022)</collection><collection>Periodicals Index Online Segment 08</collection><collection>ProQuest Historical Periodicals</collection><collection>Periodicals Index Online Segment 28</collection><collection>Periodicals Index Online</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - West</collection><collection>Primary Sources Access (Plan D) - International</collection><collection>Primary Sources Access & Build (Plan A) - MEA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Midwest</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Northeast</collection><collection>Primary Sources Access (Plan D) - Southeast</collection><collection>Primary Sources Access (Plan D) - North Central</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Southeast</collection><collection>Primary Sources Access (Plan D) - South Central</collection><collection>Primary Sources Access & Build (Plan A) - UK / I</collection><collection>Primary Sources Access (Plan D) - Canada</collection><collection>Primary Sources Access (Plan D) - EMEALA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - North Central</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - South Central</collection><collection>Primary Sources Access & Build (Plan A) - International</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - International</collection><collection>Primary Sources Access (Plan D) - West</collection><collection>Periodicals Index Online Segments 1-50</collection><collection>Primary Sources Access (Plan D) - APAC</collection><collection>Primary Sources Access (Plan D) - Midwest</collection><collection>Primary Sources Access (Plan D) - MEA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Canada</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - UK / I</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - EMEALA</collection><collection>Primary Sources Access & Build (Plan A) - APAC</collection><collection>Primary Sources Access & Build (Plan A) - Canada</collection><collection>Primary Sources Access & Build (Plan A) - West</collection><collection>Primary Sources Access & Build (Plan A) - EMEALA</collection><collection>Primary Sources Access (Plan D) - Northeast</collection><collection>Primary Sources Access & Build (Plan A) - Midwest</collection><collection>Primary Sources Access & Build (Plan A) - North Central</collection><collection>Primary Sources Access & Build (Plan A) - Northeast</collection><collection>Primary Sources Access & Build (Plan A) - South Central</collection><collection>Primary Sources Access & Build (Plan A) - Southeast</collection><collection>Primary Sources Access (Plan D) - UK / I</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - APAC</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - MEA</collection><collection>Periodicals Index Online Segment 44</collection><collection>PAO Collection 1</collection><collection>Periodicals Archive Online Collection 1</collection><collection>PAO Collection 1 (purchase pre Feb/2008)</collection><collection>Periodicals Archive Online Foundation Collection</collection><jtitle>Review of financial economics</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Ameen, Elsie C.</au><au>Guffey, Daryl M.</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>AN INVESTIGATION OF THE EFFECT OF QUALIFIED AUDIT OPINIONS ON THE TRADING VOLUME AND BID‐ASK SPREAD OF OVER‐THE‐COUNTER FIRMS</atitle><jtitle>Review of financial economics</jtitle><date>1993-10-01</date><risdate>1993</risdate><volume>3</volume><issue>1</issue><spage>41</spage><epage>50</epage><pages>41-50</pages><issn>1058-3300</issn><eissn>1873-5924</eissn><abstract>This paper investigates the information content of qualified audit opinions. The announcement of a qualified audit opinion is expected to cause investors' beliefs about the firm to converge. This increase in consensus would be evidenced by an unexpected decrease in trading volume surrounding the initial public announcement. Proportional bid‐ask spread changes are used to test for changes in information asymmetry due to the announcement.
After controlling for the effects of earnings announcements, a significant trading volume reaction is found in the week of the announcement for a sample of firms traded over the counter. No significant difference in proportional bid‐ask spread is found. The results suggest that qualified audit opinions do, indeed, convey information to the investing public and this information results in homogeneous beliefs about the firm.</abstract><cop>New Orleans, La</cop><pub>Elsevier Advanced Technology Publications</pub><doi>10.1002/j.1873-5924.1993.tb00571.x</doi><tpages>10</tpages></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 1058-3300 |
| ispartof | Review of financial economics, 1993-10, Vol.3 (1), p.41-50 |
| issn | 1058-3300 1873-5924 |
| language | eng |
| recordid | cdi_proquest_journals_196393877 |
| source | Alma/SFX Local Collection; Periodicals Index Online |
| subjects | Audits Corporation reports Disclosure (Securities law) Economic impact Information dissemination Over the counter trading Over-the-counter markets Public opinion Securities markets Statistical analysis Stock prices Studies |
| title | AN INVESTIGATION OF THE EFFECT OF QUALIFIED AUDIT OPINIONS ON THE TRADING VOLUME AND BID‐ASK SPREAD OF OVER‐THE‐COUNTER FIRMS |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-02-13T16%3A02%3A41IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-gale_proqu&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=AN%20INVESTIGATION%20OF%20THE%20EFFECT%20OF%20QUALIFIED%20AUDIT%20OPINIONS%20ON%20THE%20TRADING%20VOLUME%20AND%20BID%E2%80%90ASK%20SPREAD%20OF%20OVER%E2%80%90THE%E2%80%90COUNTER%20FIRMS&rft.jtitle=Review%20of%20financial%20economics&rft.au=Ameen,%20Elsie%20C.&rft.date=1993-10-01&rft.volume=3&rft.issue=1&rft.spage=41&rft.epage=50&rft.pages=41-50&rft.issn=1058-3300&rft.eissn=1873-5924&rft_id=info:doi/10.1002/j.1873-5924.1993.tb00571.x&rft_dat=%3Cgale_proqu%3EA17333328%3C/gale_proqu%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=1295907947&rft_id=info:pmid/&rft_galeid=A17333328&rfr_iscdi=true |