The influence of audit outcomes on the value of shares of russian companies
https://doi.org/10.38050/01300105202025
Abstract
The aim of this study is to assess the impact of audit reports issuance on the value of public corporations’ shares on the Russian stock market. The practical significance and relevance are due to the increasing role of audit in the financial market and the lack of such studies in the domestic literature. The study is based on the market model and Event Study. The research evaluates the reaction of Russian stock market to publication of audit reports containing various types of audit opinions and takes into account the relation of auditor to the Big4 group. The findings show that the Russian stock market reacts to the release of audit reports very chaotically; the market reacts negatively to the opinions with reservation issued by a Big4 auditor, and also negatively responds to unmodified opinions issued by an auditor of a nonBig4 organization; the market reaction is the opposite for identical types of opinions issued by different types of auditors.
About the Authors
V. V. Nazarova
National Research University Higher School of Economics
Russian Federation
Russian Federation
Saint Petersburg
A. A. Fedorova
National Research University Higher School of Economics
Russian Federation
Russian Federation
Saint Petersburg
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Review
For citations:
Nazarova V.V., Fedorova A.A. The influence of audit outcomes on the value of shares of russian companies. Moscow University Economics Bulletin. 2020;(2):78-105. (In Russ.) https://doi.org/10.38050/01300105202025
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