Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/77572
Title: Perceived audit quality, state ownership, and stock price delay : evidence from China
Authors: Chen, J
Dong, W
Li, S 
Zhang, YT
Keywords: Perceived audit quality
State-owned enterprises
Stock price delay
Issue Date: 2018
Publisher: Routledge, Taylor & Francis Group
Source: Asia-Pacific journal of accounting and economics, 2018, v. 25, no. 43132, p. 253-275 How to cite?
Journal: Asia-Pacific journal of accounting and economics 
Abstract: We examine the effect of audit quality on stock price delay and whether the effect differs between two groups of Chinese firms: state-owned enterprises (SOEs) and non-state-owned enterprises (NSOEs). Using a sample of 15,019 firm-year observations for Chinese listed firms over the period 2001–2011, we find that firms with Big 4 auditors are associated with less stock price delay and this negative association is weaker for SOEs than for NSOEs. Our findings suggest that high-quality auditors play an important role in the price formation process, in that there is less stock price delay, and this role varies across firms with different ownership structures. Additional analyses show that the audit quality of international Big 4 auditors is perceived to be different from that of domestic Big 4 auditors. The effect of the perceived audit quality on price delay is different for SOEs controlled by the central government compared to those controlled by the local governments. Our study contributes to extant research by focusing on the economic consequences of auditor choices and by emphasizing the importance of recognizing ownership type when conducting audit research. Data availability Data used are from public sources identified in this paper.
URI: http://hdl.handle.net/10397/77572
ISSN: 1608-1625
EISSN: 2164-2257
DOI: 10.1080/16081625.2016.1208573
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