TY - JOUR
T1 - An analysis of quasi-qualification, modified auditor opinions and special treatment status on China’s Shenzhen market
AU - Pei, Donglin
AU - Hamill, Philip
AU - Opong, Kwaku Kyekyeku
PY - 2010
Y1 - 2010
N2 - The development of accounting, auditing and capital markets in China were an integral omponent of China’s economic reforms; auditing was regarded as being critically important to achieving the desired policy objective of delivering a market economy (Yang and Yang, 1998). This article examines the quasi-qualification hypothesis and tests whether investors valued the introduction of Special Treatment (ST) status for firms in 1998. Our empirical analysis fails to find significant support for the quasi-qualification hypothesis. In contrast, it appears that the issuance of ST status was valued by investors; the issuance of ST status led investors to discriminate between firms.
AB - The development of accounting, auditing and capital markets in China were an integral omponent of China’s economic reforms; auditing was regarded as being critically important to achieving the desired policy objective of delivering a market economy (Yang and Yang, 1998). This article examines the quasi-qualification hypothesis and tests whether investors valued the introduction of Special Treatment (ST) status for firms in 1998. Our empirical analysis fails to find significant support for the quasi-qualification hypothesis. In contrast, it appears that the issuance of ST status was valued by investors; the issuance of ST status led investors to discriminate between firms.
U2 - 10.1080/00036840902881827
DO - 10.1080/00036840902881827
M3 - Article
SN - 1466-4291
VL - 17
SP - 1265
EP - 1271
JO - Applied Economics Letters
JF - Applied Economics Letters
IS - 13
ER -