Social media is becoming a popular disclosure channel with higher speed, reach, and extensive network effects. A negative information role of social media is to increase the spread of information disorder defined as false information or truth presented with the intent to harm. This study investigates whether and how auditors react to information disorder on social media, in the context of clients' merger and acquisition (M&A) rumors. I document that information disorder is positively associated with audit fees but not associated with audit delay and the likelihood of audit resignations. Additionally, increased social media attention can elevate the level of risk associated with rumors. I therefore predict that the associations will be more pronounced with greater social media influence. Using a manually collected Twitter rumor subsample, I find mixed results. This dissertation contributes to the auditing literature by documenting how external auditors incorporate social media-induced information disorder into client retention and pricing decisions.
| Identifer | oai:union.ndltd.org:unt.edu/info:ark/67531/metadc2356202 |
| Date | 07 1900 |
| Creators | Cao, Yu |
| Contributors | Sun, Lili, Sapkota, Pradeep, Feng, Yunhe |
| Publisher | University of North Texas |
| Source Sets | University of North Texas |
| Language | English |
| Detected Language | English |
| Type | Thesis or Dissertation |
| Format | Text |
| Rights | Public, Cao, Yu, Copyright, Copyright is held by the author, unless otherwise noted. All rights Reserved. |
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