The Price of Control: Pandemic Lockdowns and Perceived Earnings Quality
Journal
Accounting and Finance
Journal Volume
65
Journal Issue
4
Start Page
3291
End Page
3309
ISSN
0810-5391
1467-629X
Date Issued
2025-05-19
Author(s)
Abstract
In this study, we investigate whether investors perceived earnings quality to be impaired by lockdown policies implemented to control the spread of COVID-19. Using a sample of American Depositary Receipts (ADR) firms, we find that investors perceived earnings quality to be adversely impacted as the lockdown period lengthened. This effect is more pronounced in countries with a history of scandals and among younger companies. Our findings provide valuable insights for stakeholders focused on assessing the impact of COVID-19 on earnings quality.
Subjects
ADR
auditing
COVID-19
lockdowns
perceived earnings quality
Publisher
Wiley
Type
journal article