The Investors Reaction to the Disclosure of Key Audit Matters: Empirical Evidence from Jordan

Mohammad Abdullah Fayad Altawalbeh and Mohammad Eid Sleem Alhajaya

International Business Research, 2019, vol. 12, issue 3, 50-57

Abstract: This study aims to examine the investors reaction to the disclosure of key audit matters (KAMs) as mandated by ISA701, the study’s sample consisted of all the (195) public shareholding companies listed in Amman Stock Exchange (ASE) as at the end of 2017, and through which we have conducted a manual content analysis to tracing the auditor practices in reporting KAMs, the final sample consisted of (128) public shareholding companies and for which we used the event study test to examine the study hypothesis, results revealed that the disclosure of KAMs has significantly affected the investors decisions measured by the abnormal trading volume, Our findings suggest that the mandating of KAM’s disclosure has informational value to the investors.

Keywords: key audit matters; international standards on auditing; audit report; Amman stock exchange (search for similar items in EconPapers)
JEL-codes: C33 F31 F41 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:ibn:ibrjnl:v:12:y:2019:i:3:p:50-57

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