Study On The Behavior Of Auditor Switching Of Listed Companies Under Special Treatment In China

With the constant development of our country's security market, listed companies switch their auditors frequently, especially the ones under special treatment, which has hidden a great deal of illegitimate competition and auditor Independence impairment.After reviewing the relevant literature, the article analyzes the theories and the reasons why listed companies switch the auditors. Under the empirical study, the article study the auditor switching of listed companies under special treatment by using the descriptive statistical analysis and the Logistic regression analysis from 2001 to 2009.When the companies under special treatment restart to get net profit, They hope the auditors agree with the financial statement and get the clean opinions. In order to achieve it, switching the auditor is one of the useful methods. But how the companies under special treatment consider when they switch new auditors, and whether they can get the clean opinions or not? In order to study the series of problems, the article provides six hypotheses. And the final result is:The main factors of the auditor switching are the modified opinions, alien, and the size of the auditor, the changes of the chairman or CEO. The modified opinions are the most important factor of all, the article doesn't find that the financial distress matters with the auditor switching. What's more, the article finds the earning management doesn't matter with the opinions when the companies under special treatment restart to get profits, which shows there is something wrong with the auditor independence. At last, According to the result of the empirical and the situation in china, the article provides some useful suggestions and references...