摘要
Using manually collected data on the number and category of critical audit matters(CAMs)in the period 2016–2017,we investigate the hitherto unexplored questions of whether CAMs affect firm-specific crash risk,how CAMs influence crash risk in the Chinese capital market,and recognize CAMs that contain incremental information.Our findings are as follows:(1)Crash risk decreases after implementing the new audit standard requiring the disclosure of CAMs;(2)CAMs release negative information and change the capital market information environment;(3)only corporateidiosyncratic CAMs contain incremental information;(4)crash risk is mitigated only by CAMs disclosed by companies with a high shareholding of institutional investors.The main conclusion of our study is a positive assessment of the new audit standard and of CAMs in terms of protecting the interests of investors and strengthening the stability of the capital market to provide a new perspective for supervising the implementation of the new audit standard.
