The Impact of Qualified Opinions and Audit Firm’s Reputation on Enterprise Value in Vietnam

Abstract

This study examines the impact of qualified opinions and audit firm reputation on firm value. Data were collected from 9,199 observations of listed companies on the Vietnam stock market during the period from 2016 to 2023, of which 1,472 observations included qualified audit reports, accounting for 16%. The study employed the GLS regression method. The results show that qualified opinions have a negative effect on firm value, while the reputation of audit firms has a positive effect on firm value. However, when considering the interaction between qualified opinion and audit firm reputation, it only impacts firm value when measured by stock prices, and the results are inconsistent when measuring firm value using market value and Tobin's Q. Based on the research findings, we propose several recommendations for users of audit reports and for auditors to assess the appropriateness of qualified opinion, as well as to enhance the quality of financial reports, thereby increasing firm value.