Impact of Audit Quality on Stock Price Crash Risk: Evidence from Pakistan Stock Exchange

Stock price crash risk is an unfavourable event in business that may decrease the shareholder’s wealth and hurt stability capital market growth. This study investigates impact of audit quality measured by auditor industry specialization (AIS), tenure (AT), committee independence (ACI), firm size(AFS)) on stock value (measured down-to-up unpredictability) for a sample 70 non-financial firms listed Pakistan Exchange during from 2009 to 2018. Efficient governance enriches financial operational directness, which cuts down crashes rotation. Facing difficulties, traders impart more funds stocks well-regime organizations. The fixed effect model results show AIS ACI have negative significant risk, while there positive AFS risk. Moreover, it concludes has insignificant Pakistan. It concluded effective lessens difficulty data abnormality improves importance investors help them identify most liquid will enable decide acquire dispose of. also be helpful academics scholars bridge this gap influence practices economic consequences useful future research as well because become part empirical literature consequence markets.