Analysis of non-English key audit matters: Do key audit matters influence investor sentiment?

IF 3.3 Q1 BUSINESS, FINANCE

Journal of International Accounting Auditing and Taxation Pub Date : 2024-12-12 DOI:10.1016/j.intaccaudtax.2024.100670

Weerapong Kitiwong, Erboon Ekasingh, Naruanard Sarapaivanich

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引用次数: 0

Abstract

This study extends our understanding of the association between key audit matter (KAM) disclosures and investor sentiment in Thailand, an advanced emerging market. Thailand is characterized by a culture of high secrecy, strong uncertainty avoidance, and strong societal trust. The primary aim of this study is to analyze the local language versions of auditors’ reports, as they may differ from English-translated versions due to cultural and linguistic variations. To achieve this, we compiled a bag of Thai words to analyze the content of KAM sections in 334 publicly listed Thai companies during the period 2016–2017. We found that investor sentiment responds marginally to only three categories of KAMs and neutral words within KAM sections. However, investors do not react to the number of KAMs or to words associated with negativity, positivity, litigation, or uncertainty. These results suggest that KAM disclosures hold limited information value for investors. Regulators and standard setters successfully educated investors and other stakeholders about KAM disclosures before their implementation. However, in a high-secrecy environment, the use of neutral language in KAM sections triggers investor skepticism, leading to stock price discounts.

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非英文关键审计事项分析：关键审计事项是否影响投资者情绪？

本研究扩展了我们对泰国这个发达新兴市场关键审计事项（KAM）披露与投资者情绪之间关系的理解。泰国的特点是高度保密的文化，强烈的不确定性规避和强烈的社会信任。本研究的主要目的是分析审计报告的当地语言版本，因为由于文化和语言的差异，它们可能与英语翻译版本不同。为了实现这一目标，我们编制了一袋泰国语词汇来分析2016-2017年期间334家泰国上市公司的KAM部分内容。我们发现投资者情绪仅对三种类型的KAM和KAM部分中的中性词有轻微反应。然而，投资者不会对kam的数量或与消极、积极、诉讼或不确定性相关的词汇做出反应。这些结果表明，KAM披露对投资者的信息价值有限。监管机构和标准制定者在实施前成功地对投资者和其他利益相关者进行了有关KAM披露的教育。然而，在高度保密的环境中，在KAM部分使用中性语言会引发投资者的怀疑，导致股价折扣。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of International Accounting Auditing and Taxation BUSINESS, FINANCE-

CiteScore

4.50

自引率

3.80%

发文量

期刊介绍： The Journal of International Accounting, Auditing and Taxation publishes articles which deal with most areas of international accounting including auditing, taxation and management accounting. The journal''s goal is to bridge the gap between academic researchers and practitioners by publishing papers that are relevant to the development of the field of accounting. Submissions are expected to make a contribution to the accounting literature, including as appropriate the international accounting literature typically found in JIAAT and other primary US-based international accounting journals as well as in leading European accounting journals. Applied research findings, critiques of current accounting practices and the measurement of their effects on business decisions, general purpose solutions to problems through models, and essays on world affairs which affect accounting practice are all within the scope of the journal.