Auditor reputation and capital market reaction : new evidence from emerging market
Author
Source
Journal of Humanities and Social Sciences
Issue
Vol. 2020, Issue 59 (31 Dec. 2020), pp.321-344, 24 p.
Publisher
Al-Imam Mohammad Ibn Saud Islamic University Deanship of Scientific Research
Publication Date
2020-12-31
Country of Publication
Saudi Arabia
No. of Pages
24
Main Subjects
Abstract EN
This paper attempts to investigate whether the news covering the role of Deloitte in the case of Mohammad Al-Mojil Group (MMG) fraud affecting the abnormal returns of the public companies listed in Saudi stock.
Using event study methodology, the present study finds that negative but not Significant mean abnormal returns for Deloitte’s clients and Big 4 clients during 2012 and 2014.
The interesting results of the current study are there is a significant negative abnormal return for Deloitte's clients in the long event window (-1, +2) at the 2014 period.
This means that the effect of the announcement is reflected in the stock price on the first day of the event and its effect extended to the second day.
Such results support the hypotheses H1 that Deloitte's clients, other than MMG, experienced a significant negative market reaction to the news that reflects negatively on the quality of Deloitte's MMG audit.
American Psychological Association (APA)
al-Abbas, Muhammad Abd Allah. 2020. Auditor reputation and capital market reaction : new evidence from emerging market. Journal of Humanities and Social Sciences،Vol. 2020, no. 59, pp.321-344.
https://search.emarefa.net/detail/BIM-1279860
Modern Language Association (MLA)
al-Abbas, Muhammad Abd Allah. Auditor reputation and capital market reaction : new evidence from emerging market. Journal of Humanities and Social Sciences No. 59 (2020), pp.321-344.
https://search.emarefa.net/detail/BIM-1279860
American Medical Association (AMA)
al-Abbas, Muhammad Abd Allah. Auditor reputation and capital market reaction : new evidence from emerging market. Journal of Humanities and Social Sciences. 2020. Vol. 2020, no. 59, pp.321-344.
https://search.emarefa.net/detail/BIM-1279860
Data Type
Journal Articles
Language
English
Notes
Record ID
BIM-1279860