CEU Electronic Theses and Dissertations, 2024
| Author | Huseynzade, Sadig |
|---|---|
| Title | Auditor Accountability and Market Reactions: The effect of Malpractice Penalties on Client Stock Returns |
| Summary | This thesis investigates the impact of audit malpractice penalties on the stock returns of clients audited by the Big Four firms—Deloitte, PricewaterhouseCoopers, Ernst Young, and KPMG—from 2002 to 2023. Utilizing an event study methodology, the research categorizes fines into high and low groups and considers the role of information uncertainty in shaping market reactions. The findings reveal that higher fines are associated with more negative cumulative abnormal returns, indicating significant market concerns over severe audit malpractices. This study’s insights are valuable for policymakers, investors, and audit firms, highlighting the importance of robust audit quality and regulatory oversight in maintaining market confidence. |
| Supervisor | Lee,Tomy |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2024/huseynzade_sadig.pdf |
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