Effects of Audit Opinion on Stock Prices: The case of Croatia and Slovenia
Effects of Audit Opinion on Stock Prices: The case of Croatia and Slovenia
Author(s): Arbër Hoti, Hysen Ismajli, Skender Ahmeti, Arben DermakuSubject(s): Economy
Published by: Editura Universitară Danubius
Keywords: Audit report; audit opinion; stock price; financial statements; abnormal return;
Summary/Abstract: The aim of this paper is to determine the effects of stock prices following the announcement of audited financial reports of Slovenian and Croatian public interest entities. Our research is to study the importance of variables and their significance regarding the audit in explaining the reactions of stock price movements (fluctuations). In this study we have applied discriminant analysis and logit models. Discriminant analysis and logit were performed with type of opinion as the dependent variable and eleven financial ratios as independent variables. Test results show that the audit quality, the auditor's opinion have an impact on the evolution of stock prices.
Journal: Euro Economica
- Issue Year: 31/2012
- Issue No: 02
- Page Range: 75-87
- Page Count: 13
- Language: English