Journal of Accounting and Economics Vol. 4 No. 2 1982
A market test of investor reaction to disagreements
Abstract
The SEC currently requires that firms disclose recent disagreements with their auditors over accounting or auditing matters when a change in auditor is reported. The effectiveness and usefulness of requirements to disclose disagreements have been questioned, and previous empirical research on the issue has been inconclusive. This study investigates the information content of disclosure of the auditor-firm disagreements. The analysis indicates a significant negative market reaction in the week that the Form 8-K is filed with the SEC. This finding is consistent with the position that the disclosure provides information useful to investors.
- DOI
- 10.1016/0165-4101(82)90016-7
- Volume
- 4
- Issue
- 2
- Pages
- 109-120
- Language
- en
- Sources
- bibtex:phds-export.bib openalex crossref