| Summary: | 碩士 === 銘傳大學 === 會計學系碩士班 === 97 === Based on agency hypothesis and insurance hypothesis, this study examines the impact of Rebar scandal on stock price of audit clients surrounding various events, including Rebar unexpectedly files for restructuring and the Financial Supervisory Commission (FSC) sanctions Rebar auditors and Rebar affiliates (Union Insurance, Chinese Bank and Great Chinese Bills Finance) auditors by revoking their audit qualifications and suspending their audit tasks for two years respectively. Empirical results find that Rebar’s audit firm clients have significantly negative cumulative abnormal returns when Rebar filed for restructuring. However, don’t find statistically negative market reaction when FSC finally sanctioned Rebar auditors. And have no evidence showing that Rebar’s auditor clients and Rebar’s audit firm other clients have different abnormal returns, which suggesting that investors downgrade the whole audit film quality. Multiple regression results also show that stock price declines of Rebar audit firm clients are related to their agency cost and financial conditions, which is consistent with the expectation of agency and insurance hypotheses.
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