Do markets react to required and voluntary disclosures associated with auditor realignments? George R. Aldhizer III ⁎, Dale R. Martin, James F. Cotter Wake Forest University, The Calloway School of Business and Accountancy, Kirby Hall, Wingate Road,...
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Do markets react to required and voluntary disclosures associated with auditor realignments? George R. Aldhizer III ⁎, Dale R. Martin, James F. Cotter Wake Forest University, The Calloway School of Business and Accountancy, Kirby Hall, Wingate Road, Winston-Salem, NC, 27106-7285, United States a b s t r a c t a r t i c l e i n f o Keywords: Controls Cumulative abnormal returns (CARs) Disagreements Earnings restatement 8-K Going concern Non-reliance Required disclosures Resignation Verifiable Voluntary disclosures This manuscript investigates whether required and voluntary Form 8-K (Item 4.01) auditor realignment disclosures in 2004 and 2005 convey information content to investors in a post SOX era. Unlike prior research, our results indicate that internal control material weakness and non-reliance on management representation disclosures convey negative information content, while audit scope limitation, earnings restatement and client–auditor disagreement disclosures do not convey infor
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