Market Reaction to Modified Audit Opinions: A Systematic Literature Review in Both Developed and Developing Countries

The purpose of this paper is to review the empirical literature on value relevance audit reports by providing current evidence market reaction modified opinions (MAOs). This study motivated argument that recent research has resolved designs problems raised pre-2010 studies resulted in unmitigated and contradictory results. We adopt a systematic based guidelines presented Kitchenham et al. papers published between 2010 2020. main findings our show sufficient MAOs are indeed useful investors making decisions developed countries, which evidenced fact have negative effect share prices companies. In contrast, from conducted developing countries shows null MAOs, with exception Chinese market, significant reaction. methodological limitations alternative causes behind discussed paper.