Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/338506 
Erscheinungsjahr: 
2023
Quellenangabe: 
[Journal:] China Journal of Accounting Studies (CJAS) [ISSN:] 2169-7221 [Volume:] 11 [Issue:] 3 [Year:] 2023 [Pages:] 516-542
Verlag: 
Taylor & Francis, Abingdon
Zusammenfassung: 
The ruling against the Kangmei Pharmaceutical Co., Ltd's financial fraud was the first special representative action under China's new Securities Law, serving as a milestone in investor protection in China. Exploiting the natural experiment provided by the ruling, we empirically test the insurance value of audits and find a negative market reaction of the client firms audited by the accounting firms that were still being sued as of the date of Kangmei ruling (i.e., the sued accounting firms). Further, this reaction is weakened when the solvency of the sued accounting firms or the client firms is high, and is intensified when the client firms have high litigation risk. The ruling also eroded investors' trust in the financial statements for the year 2020 that were audited by the sued accounting firms. Overall, we provide important evidence on the effect of special representative actions from the perspective of audit insurance hypothesis.
Schlagwörter: 
Special representative actions
investor protection
insurance hypothesis
new Securities Law
Persistent Identifier der Erstveröffentlichung: 
Creative-Commons-Lizenz: 
cc-by Logo
Dokumentart: 
Article

Datei(en):
Datei
Größe
1.13 MB





Publikationen in EconStor sind urheberrechtlich geschützt.