Financial Reporting Opacity, Audit Quality and Crash Risk: Evidence from Japan

• 발행기관: 한국유통과학회
• 저자명: Soo-Joon CHAE Makoto NAKANO Ryosuke FUJITANI
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 7 No.1, 9~17쪽, 전체 9쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2020.01.30

영문 초록

This study examines the effect of financial reporting opacity and audit quality on stock price crash risk using listed firms in Japan. This study is the first research to examine the effect of financial reporting opacity on crash risk using a Japanese listed company. Furthermore, the effect of audit quality on crash risk is verified. High level auditors can mitigate crash risk by playing a role as a corporate governance device mechanism to reduce agency costs. We use a logistic regression and linear regression model to test whether financial reporting opacity and audit quality affect crash risk using listed firms in the Japanese stock exchange market during the fiscal years 2015 January through 2017 February. The results of this study suggest that the financial reporting opacity variable shows a positive relationship with CRASH, which states that a firm with more opaque financial reporting increases crash risk. The results suggest also that the firms audited by Big4 auditors experience less crash risk, implying that the audit quality in Japan can be one of the factors mitigating firm s crash risk. This study provides implications for financial reporting and audit quality to external stakeholders who wants to avoid losses.

목차

1. Introduction

2. Literature Review and Hypothesis Development

3. Research Methodology

4. Research Results

5. Conclusion

References

키워드

Financial Reporting Opacity Audit Quality Crash Risk,Japanese Listed Firm Capital Market