This study evaluates whether CPA's qualified audit opinions have information content or not, using stock price responses. The study focuses to resolve the problems of previous studies. The day of general meeting of stockholders is set as the event day and window period from -1 to +1 day of general meeting of stockholders is tested. Control firms are selected to reduce the influence of simultaneous information and well-defined statistics are used to test several hypotheses on information content of CPA's qualified audit opinions.
The result of this study is that CPA's qualified audit opinions have information content during the window period. The information content is, however, so superficial that the type of qualified audit opinions has no information content nor continuity of qualified audit opinions.
