scholarly journals Implications of Auditor Characteristics and Directors’ and Officers’ Liability Insurance for Going-Concern Audit Opinions: Evidence from Taiwan

2015 ◽  
Vol 8 (5) ◽  
Author(s):  
Hsiang-Tsai Chiang ◽  
Shu-Lin Lin ◽  
Li-Jen He
Keyword(s):  
Liability Insurance ◽  
Going Concern ◽  
Audit Opinions ◽  
Directors And Officers ◽  
Auditor Characteristics

Risco Moral nos Contratos de Seguro de Responsabilidade Civil “D&O” (Directors and Officers Liability Insurance)

2017 ◽  
Vol 8 (2) ◽  
pp. 23
Author(s):  
Gabriela Wallau Rodrigues ◽  
Juliana Sirotsky Soria
Keyword(s):  
Liability Insurance ◽  
Directors And Officers

O texto trata dos contratos de seguro de responsabilidade civil sob a modalidade “D&O” (directors & officers liability), recentemente regulamentos pela SUSEP, cujo objeto é a proteção do risco pela responsabilização de administradores de empresas (diretores e conselheiros de administração) em razão de atos cometidos no exercício de suas atividades. O enfoque da pesquisa reside nas cláusulas de afastamento de cobertura pelo cometimento de atos relacionados à corrupção – o que, segundo a lógica aplicada por algumas seguradoras, implicaria no risco moral e no aumento dos casos de violação à legislação anticorrupção. Nesse cenário, é proposta uma análise crítica acerca da cláusula de afastamento de cobertura, notadamente a partir da sua interpretação a partir da eficiência e proporcionalidade. 

scholarly journals Does a Manager Respond to a Going-Concern Audit Opinion with an Asymmetry in Gain and Loss?

2021 ◽  
Vol 13 (8) ◽  
pp. 4425
Author(s):  
Taewoo Kim
Keyword(s):  
Time Series ◽  
Accounting Conservatism ◽  
Timely Manner ◽  
Audit Opinion ◽  
Going Concern ◽  
Asymmetric Timeliness ◽  
Gain And Loss ◽  
Audit Opinions ◽  
The Relationship

In this paper, I investigate the relationship between previous going-concern audit opinions and subsequent asymmetric timeliness in accounting. Using the time-series and price-based models and conservatism proxy, I find that firms with going-concern audit opinions subsequently report losses in a more timely manner than firms that did not receive going-concern audit opinions. Furthermore, I also find that firms exiting going-concern audit opinions are more likely to report losses rather than gains in a timely manner, compared to firms non-exiting from going-concern opinions. This study extends the prior research by exploring the association between going-concern opinions and accounting conservatism from the perspective of client firms—that is, how firms behave strategically and conservatively to bypass going-concern opinions, once the firms had received previous going-concern opinions.

The impact of qualified audit opinion on stock returns: an empirical study at Amman stock exchange

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rana Bayo Flees ◽  
Sulaiman Mouselli
Keyword(s):  
Stock Returns ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Market Model ◽  
Content Type ◽  
Going Concern ◽  
Study Approach ◽  
Audit Opinions ◽  
The Impact ◽  
First Time

Purpose This paper aims to investigate the impact of qualified audit opinions on the returns of stocks listed at Amman Stock Exchange (ASE) after the introduction of the recent amendments by the International Auditing and Assurance Standard Board (IAASB) on audits reporting and conclusions. It further investigates if results differ between first time qualified and sequenced qualifications, and between plain qualified opinion and qualifications with going concern. Design/methodology/approach Audit opinions’ announcements and stock returns data are collected from companies’ annual reports for the fiscal years 2016 to 2019 while stock returns are computed from stock closing prices published at ASE website. The authors apply the event study approach and use the market model to calculate normal returns. Cumulative abnormal returns (CARs) and average abnormal returns (AARs) are computed for all qualified audit opinions’ announcements. Findings The empirical evidence suggests that investors at ASE do not react to qualified audit opinions announcements. That is, the authors find an insignificant impact of qualified audit opinion announcements on stock returns using both CAR and AAR estimates. The results are robust to first time and sequenced qualifications, and for qualifications with going concern. Results are also robust to the use of risk adjusted market model. Research limitations/implications The insignificant impact of qualified audit opinions on stock returns have two potential conflicting research implications. First, the new amendments introduced to auditors’ report made them more informative and reduce the negative signals contained in the qualified opinions. That is, investors are now aware of the real causes of qualifications and not overreacting to the qualified opinion. Second, the documented insignificant impact confirms that ASE is not a semi-strong form efficient. Practical implications The apparent excessive use of qualifications should ring the bell on whether auditors misuse their power or companies are really in trouble. Hence, the Jordanian regulatory bodies need to warn auditors against the excessive use of qualifications on the one hand, and to raise the awareness of investors on the implications of auditors’ opinions on the other hand. Originality/value This study is innovative in twofold. First, it explores the impact of qualified audit opinions on stock returns after the introduction of new amendments by IAASB at ASE. In addition, it uses event study approach and distinguishes between first time qualified and sequenced qualifications, and between plain qualified opinion and qualifications with going concern. The results are consistent with efficient market theory and behavioral finance explanations.

Directors’ and officers’ liability insurance and firm innovation

2020 ◽  
Vol 89 ◽  
pp. 414-426
Author(s):  
Jialong Wang ◽  
Jian Zhang ◽  
Haoyue Huang ◽  
Fan Zhang
Keyword(s):  
Liability Insurance ◽  
Firm Innovation ◽  
Directors And Officers
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