Information environment and stock price synchronicity: Evidence from auditor characteristics

Cahan, Steven; Lam, Brian M; Li, Lina Z; Rahman, Jahidur

dc.contributor.author	Cahan, Steven
dc.contributor.author	Lam, Brian M
dc.contributor.author	Li, Lina Z
dc.contributor.author	Rahman, Jahidur
dc.date.accessioned	2021-08-08T23:34:06Z
dc.date.available	2021-08-08T23:34:06Z
dc.date.issued	2021-2-17
dc.identifier.issn	1090-6738
dc.identifier.uri	https://hdl.handle.net/2292/55897
dc.description.abstract	The interpretation of stock price synchronicity in relation to price informativeness is controversial in the literature. We examine how firm-specific variation relates to the quality of a firm's information environment by considering two auditor characteristics—audit firm size and audit firm tenure. Using a sample of U.S. listed firms from 2000 to 2018, we find that Big N audits and longer audit firm tenure are associated with higher stock price synchronicity and lower idiosyncratic risk. Our findings suggest that firm-specific variation captures noise rather than firm-specific news, supporting the emerging view that stock price synchronicity is a direct measure of price informativeness.
dc.language	en
dc.publisher	Wiley
dc.relation.ispartofseries	International Journal of Auditing
dc.rights	Items in ResearchSpace are protected by copyright, with all rights reserved, unless otherwise indicated. Previously published items are made available in accordance with the copyright policy of the publisher.
dc.rights.uri	https://researchspace.auckland.ac.nz/docs/uoa-docs/rights.htm
dc.subject	Social Sciences
dc.subject	Business, Finance
dc.subject	Business & Economics
dc.subject	audit firm tenure
dc.subject	Big N auditors
dc.subject	R-2
dc.subject	stock price synchronicity
dc.subject	1501 Accounting, Auditing and Accountability
dc.title	Information environment and stock price synchronicity: Evidence from auditor characteristics
dc.type	Journal Article
dc.identifier.doi	10.1111/ijau.12221
pubs.issue	2
pubs.begin-page	332
pubs.volume	25
dc.date.updated	2021-07-07T02:13:09Z
dc.rights.holder	Copyright: The author	en
pubs.author-url	http://gateway.webofknowledge.com/gateway/Gateway.cgi?GWVersion=2&SrcApp=PARTNER_APP&SrcAuth=LinksAMR&KeyUT=WOS:000618690800001&DestLinkType=FullRecord&DestApp=ALL_WOS&UsrCustomerID=6e41486220adb198d0efde5a3b153e7d
pubs.end-page	350
pubs.publication-status	Published
dc.rights.accessrights	http://purl.org/eprint/accessRights/RestrictedAccess	en
pubs.subtype	Article
pubs.subtype	Journal
pubs.elements-id	841474
dc.identifier.eissn	1099-1123
pubs.online-publication-date	2021-2-17