Study On The Market Reactions Of The Auditor Switches Of Chinese Listed Companies

In recent years, there are more and more listed companies changed their auditors. According to CSRC'prescript, companies should throw daylight on this information. In this case, what had companies throw day lighted on? Whether it had market reactions or not? If had, what are the potential reasons? If not, how to explain this? Start from caring about these matters, the article try to check out something by analyzing samples which had changed their auditors.The article analyze the deputation theory, asymmetric information theory, signaling theory in the auditing market at first which settle the theory base of the latter part. Then explain the reasons of auditors change of our country from three parts: audit receiver, audit supplier and the independent third part, and analyze the system background about the auditor changing announcement and actuality of our country. On the bases of this, article choose the research samples from the list companies which changed their auditors during 2002,2003,2004 and depart samples as voluntary changing and compellent changing, st or pt and non st or pt, cleaning opinions and noncleaning opinions groups, research the market reaction of the changing matters at the directorate resolution, stockholder resolution and the year report announcing day using methoes of multiple linear regression analysis and abnormal returnrate. The purpose of these are to approve the auditor changing issues do have market reactions and they had potential bad economic results by empirical studying, so that sustain the necessary supervise and management policies in security market and provide the important decision-making evidences.By doing this, findings are as follows: it has market reactions at year report announcing day of the companies which changed their auditors; and the market reactions between the ST or PT corporations and the non ST or PT at the year reports announcing day. Through the empirical studying, it indicate that the information announcement system still exist many problems and we should strengthen the supervise and management force. At last, provide the deficiencies of the studying and the improving advice.