Does the stock market underreact to going concern opinions? Evidence from the US and Australia

• 成果类型: Article
• 署名作者: Ogneva, Maria; Subramanyam, K. R.
• 署名单位: University of Southern California
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2006.12.004
• 发表日期: 2007
• 关键词: returns; RISK

摘要

We examine 12-month returns following disclosure of first-time going concern (GC) opinions in the U.S. and Australia. We find no evidence of significant negative abnormal returns associated with GC opinions in Australia. In the U.S., negative abnormal returns subsequent to GC opinions are sensitive to choice of expected returns-notably, there are no significant negative abnormal returns when using factor models or after controlling for momentum. Overall, contrary to Taffler, Lu, Kausar's [2004. In denial? Stock market underreaction to going-concern audit report disclosures. Journal of Accounting and Economics 38, 263-285.] U.K. results, we are unable to document a market anomaly in the U.S. or Australia associated with GC opinions. (c) 2007 Elsevier B.V. All rights reserved.