The impact of audit quality on the share price in Vietnamese listed companies

Abstract

 The paper examines the impact of audit quality on the share price of companies listed on the Vietnam stock market in the period of 2014- 2018. The empirical results from the regression model show that audit quality has significant effect on the firms’ share price, in which the size and reputation of the auditing firms, the change of auditors and the rotation of auditing firms that are indicators of the audit quality has an influence on the market price per share (MPS). The larger the size and reputation of the audit firms, the higher quality of services they will provide. In addition, the change of auditors as well as the audit firms will maintain the independence in audit reports, thereby helping to increase the share price.