EFFECTS OF AUDIT OPINION ON STOCK PRICES IN INDIA

Author Name: Yashpal Meena

Volume/Issue: 02/07

Country: India

DOI NO.: 08.2020-25662434 DOI Link: https://www.doi-ds.org/doilink/12.2021-83199518/UIJIR

Affiliation:

Assistant Professor. Department of Accounting, FCMS, Jai Narain Vyas University, Jodhpur, India

ABSTRACT

The purpose of the research was to look into the impact of altered audit judgments on stock prices. During the research period, a survey was conducted on a corporation that has been continually listed in the National Stock Exchange of India. Among some information gathered were audit opinions, financials, everyday stock values, final stock values, weekly average share prices, outstanding shares, and cost of equity capital. The mean and standard deviation were computed and compared for final stock prices, book value of equity, shares outstanding, and weekly average share prices.The study's findings demonstrated a negatively significant association between audit views and share prices, with the auditor's report accounting for just a tiny amount of stock price change.The research also suggests that the CMA make interim audit reports necessary for all publicly listed firms during the fiscal year, because this knowledge is represented in stock values as quickly as possible.

Key words: Audit, Financials, Share , Prices, Firms