Key Audit Matters and Stock Return

Abstract

The objective of this research is to examine the relationship of auditor’s opinion about overall of information of Key Audit Matter (KAM) and in relationship of auditor’s opinion about KAM categories to stock return in 3 events: (1) 3-day period (-1, +1), (2) 5-day period (-1, +3), and (3) 7-day period. (-1, +5). This research is an empirical study method. The sample used in the study Including companies listed on the Stock Exchange of Thailand, a total of 256 companies. The data used for the analysis were the information from audit’s opinion about information of KAM in audit report of a listed company on the stock exchange and the closing price of stocks from 2017 – 2016. This study used descriptive statistics and Ordinary Least Squares (OLS) regression analysis are a method methodology for analyse. The results showed that relationship not significant of the overall disclosures of key audit matters to stock returns. However, there was a negative significant of two categories’ of KAM, i.e. the impairment of assets to stock returns the 5-day event (-1,+3) (P-value = 0.058)and the 7-day event. (-1,+5) (P-value = 0.021) and accounts receivable and allowances in one event period is the 3-day period (-1,+1) (P-value = 0.080).