Title: Influence of auditors' report on variation of stock returns of preference shares of the companies listed on Brazilian Stock Market

Authors: Cleibson Gonçalves Batista; Anisio Candido Pereira; Aldy Fernandes Da Silva; Elionor Farah J. Weffort

Addresses: Universidade Metodista de São Paulo, Rua Alfeu Tavares, 149 CEP 09641-000, São Bernardo do Campos – São Paulo, Brazil ' Fundação Escola de Comércio Álvares Penteado, Av. Liberdade 532, 01502-001 São Paulo, Brazil ' Fundação Escola de Comércio Álvares Penteado, Av. Liberdade 532, 01502-001 São Paulo, Brazil ' Fundação Escola de Comércio Álvares Penteado, Av. Liberdade 532, 01502-001 São Paulo, Brazil

Abstract: The objective of this paper was to verify how returns on preference share of companies listed in the Brazilian stock market react to the announcement of auditors' opinion. The listed companies' data was obtained from the database of Economatica and the auditor's reports from CVM, for an 11-year period. Additionally, we calculated the average rate of the stock returns for 30 days before and after the publication of financial statements. The Wilcoxon test was computed for comparing the average stock returns before and after publication of auditors' report. Based on our analysis, we concluded that there is an indication that the publication of auditors' report had effects on the average return of traded shares in the month after the publication of auditors' reports. The paper drew attention to the pattern of the financial statements of the year in which auditors' report had impact on the stock returns.

Keywords: auditing; auditor reports; capital markets; Brazil; stock markets; stock returns; preference shares; financial statements.

DOI: 10.1504/IJAUDIT.2013.057347

International Journal of Auditing Technology, 2013 Vol.1 No.2, pp.203 - 213

Received: 28 Mar 2013
Accepted: 07 Aug 2013
Published online: 30 Jan 2014 *

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