Do A-shares In China Successfully Engage In Opinion-shopping?

A-shares in China usually switch auditors, this has long been aunique phenomenon of China's security market. In recent years,regulators and researchers responded to concerns that companiesuse auditor switching to avoid receiving unfavorable audit reports.Despite these concerns, it is still unclear whether companies cansuccessfully engage in opinion-shopping. So our research in thisfield will be verysignificative.Because previous studies show that post-switch opinions arenot more favorable than pre-switch opinions, some researchesconcluded that opinion shopping is futile. However, this conclusionis flawed because pre-switch opinions are poor proxies for theunobserved reports companies would have received had theymade opposite switch decisions. Hence, we want to improve thetraditional methodology.