Abstract
This paper specially investigate the Sri Lankan audit opinions and its’ effect to the investors’ decision making. It has been conducted the market-based model with a sample of thirty one (31) listed manufacturing companies on the Colombo Stock Exchange; the dependent variable “Stock Return” serve as proxy for Investors’ Decisions and independent variables are “Audit Opinions” published in Sri Lanka. The study use Anova test for the study. This research study’s final consequence is robust the notion of the audit opinions are not informative value to the investors’ decisions. The Kelaniya Journal of Management, Vol. 4(1); 2015: 31-49
Highlights
According to the archival studies the main role of the financial statement auditing is promulgation the appropriate audit opinion
The United Kingdom (UK) has a broader view about the auditing, because they usually audit the financial statement's reliability as well as concerning the economic efficiency (Palepu, 2008)
When Spanish market was investigated by Martínez† et al (2004) found the modified audit opinions has not any information content to the investors
Summary
According to the archival studies the main role of the financial statement auditing is promulgation the appropriate audit opinion. Financial statement auditing is identified as a good research area by the scholars, since it has unconvincing and denial in literatures in accordance with prior literature exposures; For instance, to the best of prior scholars’ investigations report different conclusions as different country wise as well as different regimes. According to the Palepu & Healy (2008) in the United States (US) situation has been expressed steadily progression the worth of the audits to the investors. In China, the results were presented by Chen et al (2000) that the audit opinions have information content for the investors’ decisions. When Spanish market was investigated by Martínez† et al (2004) found the modified audit opinions has not any information content to the investors
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