| dc.description.abstract | With the development of the financial market, there are more and more investors who join the
stock market for the purpose of seeking profit. These activities affect the allocation of capital, which
are the factors contributing to the power of the economy if these investments bring high prospects and
vice versa (Beck et al., 2000). In order to allocate capital efficiently, one of the aspects that is needed
to concern when investing in stock is the movement of stock price. Over decades there has been a
growing number of research on stock price synchronicity, which relates to the extent of inra-firm
information integrating into the movements of stock prices (Roll, 1988; Gul et al., 2010). In this thesis,
how intra-firm characteristics are impounded into its stock prices has been considered in the
Vietnamese stock market. In particular, this study investigates Vietnamese non-financial and non
utility firms listed on Hochiminh Stock Exchange (HOSE) over the period between the year 2015 and
2019, and shows that audit quality positively connected with the synchronicity of stock prices. This
finding is different from the common assumption that audit quality is negatively associated with stock
price synchronicity (Jin & Myers, 2006; Gul et al., 2010; Hasan et al., 2014; Eun et al., 2015).
Nevertheless, the theory of efficient market states that stock prices only change to reflect the
information that is not already predicted by the public (Fama, 1970). Therefore, when audit quality is
improved, there is more firm-specific information available in the market. In this case, investors could
better evaluate firms’ operation and movements stock prices, thereby stock tends to move in
synchronous manner (Chan & Hameed, 2006; Dasgupta et al., 2010; Pham et al., 2020). The findings
in this thesis benefit investors, policy-makers, and other related people with more testimony of the link
among stock price synchronicity and audit quality in the Vietnamese stock market | en_US |
