Empirical Study on the Impact of Key Audit Disclosure on Stock Price in Audit Reports

Abstract

In order to meet the needs of capital market reform and development for high-quality accounting information and improve the information content of public company audit report, the financial statement audit business of capital market related subjects needs to be reformed. On December 23,2016, the reform of new auditing standards has been started in China，and  12 guidelines such as China CPA Auditing Standards No.1504- Communicating Key Auditing Matters in Auditing Reports were published. In order to steadily advance the reform of the audit report, the new audit report guidelines have taken a step-by-step implementation program, of which the first A+H stock listed companies were implemented on January 1,2017. This paper mainly studies the following two aspects: whether the disclosure of key audit matters will affect people's investment decision, and then affect the stock price fluctuation of listed companies；whether the disclosure of key audit matters in the audit report of state-owned banks and non-state-owned banks has different influence on the stock price. This paper takes the A-share listed banks , by collecting the enterprises 2013-2018 annual audit reports and the closing prices of the stock during the report day, to carries on the research and makes the hypothesis, and finally use the empirical verification, draw a conclusion.