A market test of investor reaction to disagreements

@inproceedings{Smith1982AMT,
  title={A market test of investor reaction to disagreements},
  author={David Branson Smith and Donald Ray Nichols},
  year={1982}
}
Abstract The SEC currently requires that firms disclose recent disagreements with their auditors over accounting or auditing matters when a change in auditor is reported. The effectiveness and usefulness of requirements to disclose disagreements have been questioned, and previous empirical research on the issue has been inconclusive. This study investigates the information content of disclosure of the auditor-firm disagreements. The analysis indicates a significant negative market reaction in… CONTINUE READING