Response of Regulatory Bodies to Financial Crises: role of auditors and international comparison

Abstract

In the light of recent crises capital markets are re-evaluating value relevance of financial information for price formation on the stock market. In this paper we investigate this issue through a comparison of recent developments in the US market as compared to Czech market. The paper identifies specific and significant contrasts between the US and Czech economies and draws conclusions on regulatory structures in developing as compared to advanced economies.capital Markets; enforcement; regulation