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Issue 5(1), October 2010 -- Paper Abstracts
Girard  (p. 9-22)
Cooper (p. 23-32)
Kunz-Osborne (p. 33-41)
Coulmas-Law (p.42-46)
Stasio (p. 47-56)
Albert-Valette-Florence (p.57-63)
Zhang-Rauch (p. 64-70)
Alam-Yasin (p. 71-78)
Mattare-Monahan-Shah (p. 79-94)
Nonis-Hudson-Hunt (p. 95-106) 



JOURNAL OF ACCOUNTING AND FINANCE 


If Leases are not Capitalized: The Effects of a Qualified Audit Opinion on Investors’
Judgments and Decisions


Author(s): Botao Chen, Xia Zhang

Citation: Botao Chen, Xia Zhang, (2018) "If Leases are not Capitalized: The Effects of a Qualified Audit Opinion on Investors’ Judgments and Decisions",  Journal of Accounting and Finance, Vol. 18, ss. 2, pp. 200-212

Article Type: Research paper

Publisher: North American Business Press

Abstract:

FASB’s new leases standard ASC 842 requires most leases to capitalize on a balance sheet. If some
leases are misclassified and not capitalized, the auditor will issue a qualified audit opinion on financial
statements. This study conducts an experiment with 68 MBA students to examine the informative value of a qualified opinion due to lease misclassification. The results reveal that this qualified opinion
significantly decreases investors’ willingness to invest in the client. Also, when the qualified opinion is
issued, as compared to an unqualified opinion, investors perceive information related to company growth and return on common stock less important.