Does increased monitoring enhance the credibility of financial reports? Evidence of auditing semi‐annual financial statements

Hui‐Yu Hsiao, Wu‐Po Liu and Szu‐Jung Wu

Accounting and Finance, 2025, vol. 65, issue 1, 753-772

Abstract: Due to several financial scandals of Taiwan‐listed foreign firms (known as KY firms), the Taiwan Financial Supervisory Commission requires KY firms to disclose audited semi‐annual financial statements, which were reviewed before. Using the event study, we find higher cumulative abnormal returns for KY firms around the regulation announcement, suggesting the market's positive attitude towards the increase in the assurance level of semi‐annual financial statements. In addition, we apply a difference‐in‐differences test and find the improvement in earnings response coefficients, showing the market's increased perception of audit quality. Our findings should be of interest to regulators, practitioners, and researchers.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1111/acfi.13347

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:acctfi:v:65:y:2025:i:1:p:753-772

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0810-5391

Access Statistics for this article

Accounting and Finance is currently edited by Robert Faff

More articles in Accounting and Finance from Accounting and Finance Association of Australia and New Zealand Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().