The Impact Of Audit Quality On Value Relevance Of Accounting Information Case Study Of Ho Chi Minh Stock Exchange

Abstract

This research delves into the realm of value relevance of accounting information and audit quality impact on it within the context of the Vietnamese stock market. The primary objective is to deepen our understanding of the association between accounting information and market stock price and how the quality of audit processes interacts with this relationship. The methodological approach involves empirical analysis, leveraging data collected from companies listed on the Ho Chi Minh Stock Exchange during the period from 2017 to 2022. Statistical models are employed to analyze the data and examine hypotheses. Key findings underscore a notable correlation between earnings per share and stock prices, spotlighting the value relevance of this accounting metric. However, Book Value Per Share (BVPS) shows a weak or statistically insignificant correlation with stock prices. Additionally, statistically significant correlations are found between the product of BVPS and Audit Quality, as well as the product of EPS and Audit Quality, with stock prices across various models. These outcomes contribute to a more comprehensive understanding of the interplay between accounting information, audit quality, and stock valuations in the Vietnamese context. Limitations include a focus solely on the Ho Chi Minh Stock Exchange, potentially limiting generalizability, and a study period from 2017 to 2022 that may not capture longer-term trends or certain market developments. Future research opportunities lie in extending the analysis to multiple stock exchanges within Vietnam or regions and delving deeper into specific components of audit quality to understand their individual impact on value relevance