Joint Audit and Financial Scandal: the case of the French Context
| dc.contributor.author | Jamal Azebi | |
| dc.date.accessioned | 2025-06-16T05:06:29Z | |
| dc.date.issued | 2018-02-03 | |
| dc.description.abstract | The European Commission issued a proposal that encouraged the practice of joint audit on a voluntary basis following the green paper published in November 2011. It recommended that mandatory audit firm rotation be extended from six years to nine years if joint audits are performed. This is considered as a new mechanism that increase audit quality and auditor independence. This new orientation of the EC Green Paper has an important impact on investor perception during the financial scandal announcement. In order to answer on this question, we investigate the stock market reaction of SBF 250 after the disclosure of the financial scandal in presence of joint audit. Our sample is composed of 140 French listed enterprises. We use event study method and OLS regression. The empirical results demonstrate that the stock market of Non Big-Four clients does not significantly reacted compared to the firms audited by at least one Big Four in France. Contrary to this finding, the stock market reaction of the firms audited by two Big Four was significantly reacted compared to the enterprises audited by one Big at least in France. Those results demonstrate that joint audit with at least one Non-Big encouraged and especially in the Financial scandal periods and resolve the problem associated to the audit market concentration. | |
| dc.identifier.uri | https://research.arabeast.edu.sa/handle/123456789/57 | |
| dc.language.iso | en | |
| dc.publisher | International Journal of Advanced and Applied Sciences | |
| dc.title | Joint Audit and Financial Scandal: the case of the French Context | |
| dc.type | Article |