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Please use this identifier to cite or link to this item: http://hdl.handle.net/10400.5/4418

Título: Going concern opinions are not bad news : evidence from industry rivals
Autor: Coelho, Luís M. S.
Peixinho, Ruben M. T.
Terjensen, Siri
Palavras-chave: Audit reports
Going concern
Competitive effect
Issue Date: 2012
Editora: Instituto Superior de Economia e Gestão - Departamento de Economia
Citação: Coelho, Luís M. S., Rúben M. T. Peixinho, Siri Terjensen. 2012."Going concern opinions are not bad news : evidence from industry rivals". Instituto Superior de Economia e Gestão - DE working papers nº16-2012
Relatório da Série N.º: DE working papers;nº16/2012
Resumo: This paper examines whether going concern audit opinions (GCO) affect the stock price performance of the announcing firms and their industry rivals. Our original evidence clearly suggests that such accounting event is asymmetrically perceived by the market depending on whether the firm is qualified by the auditor or not. In particular, firms receiving a GCO earn negative abnormal returns at the audit report’s disclosure date and over the following year whereas their industry rivals exhibit positive abnormal returns at the GCO date and in the subsequent one-month period. This is in contrast with the preevent abnormal returns, which, on average, are negative and significant for all firms operating within the industry. Overall, we highlight the relevance of audit opinions and mandatory accounting information for the timing of transactions in financial markets.
URI: http://hdl.handle.net/10400.5/4418
ISSN: 0874-4548
Versão do Editor: https://aquila.iseg.utl.pt/aquila/getFile.do?method=getFile&fileId=270870&contentContextPath_PATH=/departamentos/ec/lateral/menu-working-papers/nova-serie/2012&_request_checksum_=70644876f8d2a637e59107a7240e15adb7f4fb12
Appears in Collections:DE - Documentos de trabalho / Working Papers

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