Audit quality and trading volume reaction: A study of initial public offering of stocks
Journal
Journal of Accounting and Public Policy
Journal Volume
12
Journal Issue
3
Pages
263-287
Date Issued
1993
Author(s)
Jonathan Jang H.-Y.
Abstract
Based on the theories predicting that trading volume reaction to a release of more reliable information is initially stronger but less persistent, this paper investigated the relationship between independent auditor selection and trading activities. By examining trading volumes of stocks offered to the public for the first time, we found the following behaviors: (a) on the first trading day, the trading volume was significantly larger for corporations audited by a Big Eight CPA firm than for corporations audited by non-Big Eight CPA firm and (b) on later trading days, the trading volume for Big Eight-audited corporations became smaller than that for corporations audited by non-Big Eight CPA firms. © 1993.
SDGs
Type
journal article