Contagion or Competition: Going Concern Audit Opinions for Real Estate Firms
Posted: 13 Oct 2005
Abstract
We examine whether intra-industry information transfers from going-concern audit opinion announcements create contagion or competitive stock price reactions for other real estate firms operating in the same line of business. Using returns from publicly-traded land subdivision/development firms and Real Estate Investment Trusts, we find modest evidence supporting a competitive effect among rival firms as a result of another real estate firm announcing the receipt of a Going Concern Opinion (GCO) from its independent auditors.
Keywords: going concern opinions, contagion effect, competitive effect
JEL Classification: M49, G12, L85
Suggested Citation: Suggested Citation
Elliott, R. Stephen and Highfield, Michael J. and Schaub, Mark, Contagion or Competition: Going Concern Audit Opinions for Real Estate Firms. Journal of Real Estate Finance and Economics, Vol. 32, No. 4, 2006, Available at SSRN: https://ssrn.com/abstract=814064
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.