Critical audit matters and stock price crash risk  

作　　者：Xiaoqiang Zhi Zuming Kang 

机构地区：[1]Department of Finance,Business School,Renmin University of China,Room 0204,Chongde East Building in Renmin University of China,No.59 Zhongguancun Street,Beijing,Haidian District,China [2]Department of Finance,Business School,Renmin University of China,Room 0439,Pinyuan

出　　处：《Frontiers of Business Research in China》2021年第1期64-88,共25页中国高等学校学术文摘·工商管理研究（英文版）

摘　　要：Using manually collected data on the number and category of critical audit matters(CAMs)in the period 2016–2017,we investigate the hitherto unexplored questions of whether CAMs affect firm-specific crash risk,how CAMs influence crash risk in the Chinese capital market,and recognize CAMs that contain incremental information.Our findings are as follows:(1)Crash risk decreases after implementing the new audit standard requiring the disclosure of CAMs;(2)CAMs release negative information and change the capital market information environment;(3)only corporateidiosyncratic CAMs contain incremental information;(4)crash risk is mitigated only by CAMs disclosed by companies with a high shareholding of institutional investors.The main conclusion of our study is a positive assessment of the new audit standard and of CAMs in terms of protecting the interests of investors and strengthening the stability of the capital market to provide a new perspective for supervising the implementation of the new audit standard.

关 键 词：Critical audit matters(CAMs) Crash risk Incremental information New audit standard Corporate-idiosyncratic CAMs 

分 类 号：F42[经济管理—产业经济]