Haeyoung Ryu, Soo-Joon Chae
High-quality audits lower information asymmetry between managers and investors by improving the quality of financial reporting. Hence, we expect audit quality to be positively associated with investors' accurate understanding of companies’ financial information, which can reduce stock price delays. Within the emerging markets, we focus on 3,298 firm-year observations of South Korean listed companies. The results reveal that organizations audited by Big 4 accounting firms show fewer stock price delays. Additionally, after dividing the sample into conglomerate and non-conglomerate groups, the latter group shows fewer stock price delays compared to the former when audited by Big 4 firms.