Deakin University
Browse

File(s) not publicly available

Audit quality and information asymmetry between traders

journal contribution
posted on 2023-02-06, 03:55 authored by Greg ClinchGreg Clinch, D Stokes, T Zhu
In this study, we investigate the association between audit quality and information asymmetry between informed and uninformed traders. We employ three proxies for information asymmetry - absolute price differences, absolute volatility differences, and absolute differences in the long/short ratio of trades - between US stock and options markets and represent audit quality through the appointment of Big n and industry specialist auditors. For a sample of 4062 firm-years between 2002 to 2005, our results indicate that the appointment of Big n and industry specialist auditors is associated with lower information asymmetry measures. Our results are consistent with audit quality playing a role in the quality of financial reporting information and flowing through to the allocation of information among traders. © 2011 AFAANZ.

History

Journal

Accounting and Finance

Volume

52

Pagination

743 - 765

ISSN

0810-5391

eISSN

1467-629X

Usage metrics

    Research Publications

    Categories

    No categories selected

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC