The Influence of Credibility Financial Information and Audit Quality on the Stock Price

• Main Authors: Da-Yu Chu, 朱大寓
• Other Authors: Chu-Yang Chien
• Format: Others
• Language: zh-TW
• Published: 2009
• Online Access: http://ndltd.ncl.edu.tw/handle/35029117748521745966

碩士 === 國立雲林科技大學 === 會計系研究所 === 97 === Financial statements can express the financial status and operating performance of the companies. But sometimes the Management will manipulate the financial statements to achieve certain purposes. Therefore the information quality of the financial statements depends on the credibility of the Management and the audit quality. This research investigated the influence of credibility of financial information and audit quality on the M/B ratio (market to book ratio). The research defined the correctness of self- reported profit of the Management as the indicator of the credibility of the Management and auditor industry specialists is used as the proxy variable of the audit quality. This research performed empirical analyses for the listed companies in Taiwan Stock Exchange and Over-the-Counter for the period from 2005 to 2007. The result suggested that the auditor industry specialists have positive effect on M/B ratio. The research indicated the investors are willing to give higher M/B ratio for the company with better audit quality. However, there appear no significant result that to use the differences of self-reported profit and public-announced report to infer the credibility of the Management.