Khóa luận tốt nghiệp the influence of audit opinions on stock market prices empirical research in companies listed on the ho chi minh stock exchange

THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING HO CHI MINH UNIVERSITY OF BANKING TA THI THU UYEN THE INFLUENCE OF AUDIT OPINIONS ON STOCK MARKET PRICES - EMPIRICAL RESEARCH IN COMPANIES LISTED ON THE HO CHI MINH STOCK EXCHANGE GRADUATION THESIS MAJOR: ACCOUNTING AND AUDITING CODE: 7340301 SUPERVISOR: DR HUYNH THI NGOC ANH HO CHI MINH CITY – 2022 THE STATE BANK OF VIETNAM MINISTRY OF EDUCATION AND TRAINING HO CHI MINH UNIVERSITY OF BANKING TA THI THU UYEN STUDENT CODE: 050606180440 HQ6-GE01 THE INFLUENCE OF AUDIT OPINIONS ON STOCK MARKET PRICES - EMPIRICAL RESEARCH IN COMPANIES LISTED ON THE HO CHI MINH STOCK EXCHANGE GRADUATION THESIS MAJOR: ACCOUNTING AND AUDITING CODE: 7340301 SUPERVISOR: DR HUYNH THI NGOC ANH HO CHI MINH CITY – 2022 ABSTRACT Financial Statements are an essential information channel for investors to help them analyze, evaluate, and make investment decisions However, there is a gap between the expectations of business managers and users of financial statements about the truthfulness and reliability of financial statements Therefore, information asymmetry determines investors to call for auditors' services Through the audit reports, the auditors offer a professional, objective, and independent opinion regarding the presentation in financial statements of the true and fair view of the most significant aspects of the financial position and performance, in accordance with the accounting framework This study investigates the effect of the audit reports containing qualifications or an emphasis on matter paragraph related to going concern uncertainty or financial distress on stock market prices in the Ho Chi Minh Stock market In particular, abnormal returns are analyzed around the publication date of this audit report The event study methodology, focusing on a short event window, was used to determine whether there was an immediate market reaction to the audit report announcement A market-based study was conducted on the qualified and unqualified opinions, emphasising paraphrasing the shareholding companies listed on the Ho Chi Minh Stock market during 2018 - 2021 The study's conclusions showed that two types of opinions negatively affect stock prices in short periods, but this effect is not significant In other words, there is no information content in qualified and unqualified with an emphasis on matter paragraph in the HoChiMinh stock exchange DECLARATION OF AUTHENTICITY I declare that this is my independent thesis The data used in the thesis are of clear origin and published following the law The research results in the thesis are my research and analysis, honestly, objectively, and by following the reality of Vietnam These results have not been published in any previous papers Ho Chi Minh City, November 2022 The Author Ta Thi Thu Uyen ACKNOWLEDGEMENT Firstly, I would like to send my profound gratitude to all the lecturers at Banking university, in the Office of Academic Affairs, and especially to the Accounting and Auditing Department lectures while studying for a bachelor's degree at the Ho Chi Minh University of Banking Secondly, I would like to express my sincerest and most profound thankfulness to Dr Huynh Thi Ngoc Anh for her guidance and patience in giving me valuable recommendations during my study period I am happy and fortunate to carry out this study under her supervisor Lastly, I would like to thank my family for their support during my study and life Without encouragement and sacrifice, I would not have finished this thesis, so I express my special love and gratitude to them In the implementation process, mistakes are inevitable despite consulting, exchanging, and absorbing suggestions from teachers and friends With the effort to improve more and more, I look forward to receiving valuable advice from teachers and friends Warmest regards Ta Thi Thu Uyen TABLE OF CONTENTS ABSTRACT DECLARATION OF AUTHENTICITY ACKNOWLEDGEMENT TABLE OF CONTENTS LIST OF ABBREVIATIONS LIST OF FIGURES LIST OF TABLES CHAPTER 1: INTRODUCTION 1.1 THE NECESSITY OF THE REPORT 1.2 THE AIM OF THE THESIS 1.2.1 Overall objectives 1.2.2 Detail objectives 1.3 THE RESEARCH QUESTIONS 1.4 OBJECT AND SCOPE OF THE RESEARCH 1.5 METHODOLOGY 1.6 CONTRIBUTION OF THE THESIS 1.7 THE PROPOSED LAYOUT OF THE THESIS CHAPTER 2: OVERVIEW OF THE RESEARCH FIELDS 2.1 FOREIGN RESEARCH 2.2 DOMESTIC RESEARCH 2.3 RESEARCH GAP 10 CONCLUSION CHAPTER 12 CHAPTER 3: CONCEPTUAL FRAMEWORK 13 3.1 THE THEORETICAL BASIS FOR AUDITING FINANCIAL STATEMENTS AND AUDIT OPINIONS 13 3.1.1 The concept and purpose of auditing financial statements 13 3.1.2 The types of audit opinions of financial statements 14 3.2 OVERVIEW OF THE SECURITIES MARKET 15 3.2.1 The conception of the Securities market 15 3.2.2 Stocks 16 3.3 FOUNDATIONAL THEORIES 18 3.3.1 Agency Theory 18 3.3.2 Asymmetric Information Theory 19 3.4 THEORY OF EVENT STUDY METHODOLOGY 20 CONCLUSION CHAPTER 23 CHAPTER 4: METHODOLOGY 24 4.1 THE METHODOLOGY AND RESEARCH IMPLEMENTATION PROCESS 24 4.1.1 The methodology 24 4.1.2 Research implementation process 25 4.2 DATA ANALYSIS METHODS 26 4.2.1 Research hypothesis, sample selection, and research data collection 29 4.2.2 Sampling method 30 4.2.3 Data collection 31 CONCLUSION CHAPTER 33 CHAPTER 5: RESEARCH RESULTS 34 5.1 DATA ANALYSIS AND RESEARCH FINDINGS 34 5.2 RELATIONSHIP BETWEEN TYPES OF AUDIT OPINION AND STOCK PRICE 40 5.2.1 Effect of the qualified audit opinion on stock prices 42 5.2.2 The effect of the unqualified audit opinion with the emphasis paragraph on the share price 46 CONCLUSION CHAPTER 50 CHAPTER 6: CONCLUSION AND RECOMMENDATIONS 51 6.1 CONCLUSION 51 6.2 RECOMMENDATIONS 52 6.2.1 Recommendations for listed companies 52 6.2.2 Recommendations to policy-making agencies 53 6.3 LIMITATIONS OF THE STUDY 54 6.4 FUTURE RESEARCH DIRECTIONS 54 CONCLUSION CHAPTER 55 REFERENCES 56 APPENDIX 60 APPENDIX 1: NUMBER OF NEW INDIVIDUAL INVESTOR ACCOUNTS BY YEAR FROM 2016 TO 2021 60 APPENDIX 2: THE LIST OF RESEARCH SAMPLES 60 LIST OF ABBREVIATIONS FS Financial Statement ISA International Auditing Standards HNX Hanoi Stock Exchange HOSE Ho Chi Minh Stock Exchange SEC Securities And Exchange Commission VSA Vietnamese Standard Auditing VSD Vietnam Securities Depository LIST OF FIGURES Figure 4.1: Event timeline of the study 32 ... for the audit opinion that is the qualified opinion? 1.4 Object and scope of the research The object of the study is the audit opinion on the audit reports of companies listed on the Ho Chi Minh. .. influence of audit opinions on stock market prices Empirical research in companies listed on the Ho Chi Minh Stock Exchange" as my graduate thesis research topic 1.2 The aim of the thesis 1.2.1... research is mainly primary, collected by collecting audit opinions and the publication date of audit reports of non-financial companies listed on the Ho Chi Minh Stock Exchange Stock market prices