Does Credible Auditing Add Value?

Detalhes bibliográficos
Autor(a) principal: Brito, Ricardo D.
Data de Publicação: 2006
Outros Autores: Peres, Eduardo P.
Tipo de documento: Artigo
Idioma: eng
por
Título da fonte: BBR. Brazilian Business Review (English edition. Online)
Texto Completo: http://www.bbronline.com.br/index.php/bbr/article/view/436
Resumo: This article studies the impact of the year 2002 audit failures on the auditors’ clients’ stock prices. Specifically, we examine the Big 5’s clients stock market impact surrounding various dates on which one of the Big 5’s audit procedures and independence were under scrutiny: Omnicom, Merck, WorldCom, Qwest, Xerox, Bristol Meyers, Duke Energy, El Paso and AOL events. In general, on failures involving Arthur Andersen, Andersen’s former client’s and clients of the auditor in place experienced statistically negative market reactions. On events involving other Big 4, clients didn’t experience statistically negative market reactions. The SEC order to CEO’s certification causes volatility but not statistically negative market reactions.
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spelling Does Credible Auditing Add Value?Uma auditoria confiável adiciona valor?financial reportingauditors’ independenceaccounting mistakesmarket reactiondemonstrações financeirasauditores independenteserros de contabilidadereação de mercadoThis article studies the impact of the year 2002 audit failures on the auditors’ clients’ stock prices. Specifically, we examine the Big 5’s clients stock market impact surrounding various dates on which one of the Big 5’s audit procedures and independence were under scrutiny: Omnicom, Merck, WorldCom, Qwest, Xerox, Bristol Meyers, Duke Energy, El Paso and AOL events. In general, on failures involving Arthur Andersen, Andersen’s former client’s and clients of the auditor in place experienced statistically negative market reactions. On events involving other Big 4, clients didn’t experience statistically negative market reactions. The SEC order to CEO’s certification causes volatility but not statistically negative market reactions.Este artigo estuda o impacto das falhas de auditorias sobre os preços das ações dos clientes dos auditores. Examinamos especificamente o impacto no valor de mercado dos clientes das 5 Grandes, cobrindo eventos de 2002 nos quais os procedimentos de auditoria de uma delas e sua independência encontravam-se sob escrutínio: Omnicon, Merck, WorldCom, Qwest, Xerox, Bristol Meyers, Duke Energy, El Paso e AOL. Em geral, nas falhas envolvendo a Arthur Andersen, seus clientes e os clientes da auditoria responsável à época do reconhecimento da falha experimentaram reações de mercado estatisticamente negativas. Em eventos envolvendo as outras 4 Grandes, os clientes não experimentaram reações estatisticamente negativas. A ordem da SEC para certificação dos Diretores-Presidentes (CEO) causa volatilidade mas não reações estatisticamente negativas.FUCAPE Business Shool2006-07-01info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionPeer-reviewed ArticleArtigo revisado pelos paresapplication/pdfapplication/pdfhttp://www.bbronline.com.br/index.php/bbr/article/view/43610.15728/bbr.2006.3.2.5Brazilian Business Review; Vol. 3 No. 2 (2006): July to December 2006; 200-222Brazilian Business Review; v. 3 n. 2 (2006): Julho a Dezembro de 2006; 200-2221808-23861807-734Xreponame:BBR. Brazilian Business Review (English edition. Online)instname:Fucape Business School (FBS)instacron:FBSengporhttp://www.bbronline.com.br/index.php/bbr/article/view/436/660http://www.bbronline.com.br/index.php/bbr/article/view/436/661Copyright (c) 2006 Brazilian Business Reviewhttps://creativecommons.org/licenses/by/4.0info:eu-repo/semantics/openAccessBrito, Ricardo D.Peres, Eduardo P.2018-11-07T19:33:49Zoai:ojs.pkp.sfu.ca:article/436Revistahttps://www.bbronline.com.br/index.php/bbr/indexONGhttp://www.bbronline.com.br/index.php/bbr/oai|| bbronline@bbronline.com.br1808-23861808-2386opendoar:2018-11-07T19:33:49BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS)false
dc.title.none.fl_str_mv Does Credible Auditing Add Value?
Uma auditoria confiável adiciona valor?
title Does Credible Auditing Add Value?
spellingShingle Does Credible Auditing Add Value?
Brito, Ricardo D.
financial reporting
auditors’ independence
accounting mistakes
market reaction
demonstrações financeiras
auditores independentes
erros de contabilidade
reação de mercado
title_short Does Credible Auditing Add Value?
title_full Does Credible Auditing Add Value?
title_fullStr Does Credible Auditing Add Value?
title_full_unstemmed Does Credible Auditing Add Value?
title_sort Does Credible Auditing Add Value?
author Brito, Ricardo D.
author_facet Brito, Ricardo D.
Peres, Eduardo P.
author_role author
author2 Peres, Eduardo P.
author2_role author
dc.contributor.author.fl_str_mv Brito, Ricardo D.
Peres, Eduardo P.
dc.subject.por.fl_str_mv financial reporting
auditors’ independence
accounting mistakes
market reaction
demonstrações financeiras
auditores independentes
erros de contabilidade
reação de mercado
topic financial reporting
auditors’ independence
accounting mistakes
market reaction
demonstrações financeiras
auditores independentes
erros de contabilidade
reação de mercado
description This article studies the impact of the year 2002 audit failures on the auditors’ clients’ stock prices. Specifically, we examine the Big 5’s clients stock market impact surrounding various dates on which one of the Big 5’s audit procedures and independence were under scrutiny: Omnicom, Merck, WorldCom, Qwest, Xerox, Bristol Meyers, Duke Energy, El Paso and AOL events. In general, on failures involving Arthur Andersen, Andersen’s former client’s and clients of the auditor in place experienced statistically negative market reactions. On events involving other Big 4, clients didn’t experience statistically negative market reactions. The SEC order to CEO’s certification causes volatility but not statistically negative market reactions.
publishDate 2006
dc.date.none.fl_str_mv 2006-07-01
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
Artigo revisado pelos pares
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://www.bbronline.com.br/index.php/bbr/article/view/436
10.15728/bbr.2006.3.2.5
url http://www.bbronline.com.br/index.php/bbr/article/view/436
identifier_str_mv 10.15728/bbr.2006.3.2.5
dc.language.iso.fl_str_mv eng
por
language eng
por
dc.relation.none.fl_str_mv http://www.bbronline.com.br/index.php/bbr/article/view/436/660
http://www.bbronline.com.br/index.php/bbr/article/view/436/661
dc.rights.driver.fl_str_mv Copyright (c) 2006 Brazilian Business Review
https://creativecommons.org/licenses/by/4.0
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Copyright (c) 2006 Brazilian Business Review
https://creativecommons.org/licenses/by/4.0
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv FUCAPE Business Shool
publisher.none.fl_str_mv FUCAPE Business Shool
dc.source.none.fl_str_mv Brazilian Business Review; Vol. 3 No. 2 (2006): July to December 2006; 200-222
Brazilian Business Review; v. 3 n. 2 (2006): Julho a Dezembro de 2006; 200-222
1808-2386
1807-734X
reponame:BBR. Brazilian Business Review (English edition. Online)
instname:Fucape Business School (FBS)
instacron:FBS
instname_str Fucape Business School (FBS)
instacron_str FBS
institution FBS
reponame_str BBR. Brazilian Business Review (English edition. Online)
collection BBR. Brazilian Business Review (English edition. Online)
repository.name.fl_str_mv BBR. Brazilian Business Review (English edition. Online) - Fucape Business School (FBS)
repository.mail.fl_str_mv || bbronline@bbronline.com.br
_version_ 1754732238653620224

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