내부감사기구와 외부감사인 간의 의사소통이 투자자들 간의 상이한 믿음에 미치는 영향

We test whether communication between internal audit organizations and external auditors is related to heterogeneous beliefs among investors (trading volume) about the investment target company. We also test the additional effect of auditor size on the relationship between communication between internal audit organizations and external auditors on trading volume. The test results show that the number of communications between internal audit organizations and external auditors have a positive relationship with trading volume. However, auditor size do not appear to have an additional effect on the positive relationship between communication frequency and trading volume. This is found to be consistent even when tested by setting the standard deviation of daily stock returns as the dependent variable. We subdivide the communication methods (face-to-face and other methods) and conduct additional tests to see how each communication method is related to trading volume. As a result of the test, it is found that the number of face-to-face communication and other communication methods have a positive relation with trading volume. Auditor size appear to have no additional effect on this relation. The results of this study suggest that diverse and active communication between the governance body and external auditors does not serve as an incentive to increase audit quality and reduce heterogeneous beliefs among investors in investment target companies. This indicates that investors do not perceive that active communication between internal audit organizations and external auditors improves the audit quality of investment target companies. In other words, it suggests that perceive that active communication between internal audit organizations acts as a factor that causes various interpretations by investors. And auditor size can be interpreted as having no additional effect on investors’ diverse interpretations of communication between the governance body and external auditors. We have a practical contribution in that we test how investors judge the communication between the governance and external auditors and reflect it in their investment decisions. In particular, this study is expected to provide useful data for policy-making by policy authorities in that it subdivides communication methods and tests how investors react according to the format of communication between the governance and external auditors. In addition, this study attempted to secure the robustness of the study by using the standard deviation of daily stock returns in addition to trading volume.