The Study On The Influencing Factors Of Voluntary Auditor Switches Of Chinese Listed Companies

The increasing number of auditor switches in the capital market in China has gradually become the main social concern and the focus of the society and the government. There are many complicated reasons for this kind of change, which also poses potential adverse economic consequences. There are three factors:voluntary change factors, regulatory auditor change factors and changes factors in the induced. Among those reasons, the voluntary change should be paid special attention to. Scholars abroad have done some research concerning about the influencing factors of auditor switches, and obtain a wealth of research results. Studies on this area in china begins at 21 century, yet with little progeny and improvement, opinion is not yet mature. In particular, the voluntary auditor change is not enough depth study and research less. In order to give a thorough insight into the influencing facotrs of the voluntary auditor switches by the listed companies, this thesis will present four main factors from the perspective of listed companies. By combining the situation of both the audit market and the listed companies, it will do some analysis both theoretically and pratically, to take the market as the research subject on the background of the capital market in the last two years.This thesis can be divided into five parts. In the first chapter, namely, the introduction part, it will summarize the research background and the significance of this thesis, elaborate the current research at home and abroad, and describe the structure layout of the essay. In the second part, it will mainly difine the meaning and type about the auditor switches, and set the basic theories on the basis of the principal agent theory, the audit contract theory, the signal transfer theory and the game theory. The third chapter will analyze the profile of the information disclosure in the auditor switches by the listed companies, including three influencing factors. The first factor is about the four elements of the voltuntary auditor switches:non-standard audit opinion, financial difficulties, excessive earnings management and audit fees. And the next is the factor stimulated by the regulation in the auditor switches, including the mandatory shifts between the auditor switches and some relevant rules concerning the vilation and the afterward punishment. The last deals with the reason why auditor switches will choose the voluntary change, including avoiding the risks and adjusting the business structure. The forth chapter is the empirical analysis, which will examine the differences between two independent samples and conduct descriptive statistics analysis and relevant coefficient test. In addition, it will also verify whether the previous stated four factors consist with the hypothesis using logistic regression. The fifth chapter sums up the research conclusion on the basis of theoretical and empirical analysis and offers some suggestions ranging from consummating the information disclosure of the auditor switches by the listed companies to strengthening supervision on the behavior of the listed companies and the auditor switches. Besides, the outlook of the research in this area is also stated in connection with deficiency of this thesis.The innovation and the feature of this thesis is to conclude the influencing factors in the auditor switches by the listed companies and to do empirical analysis using four elements corresponding with the development trend of the present capital market in China, which are non-standard audit opinion, financial difficulties, excessive earnings management and audit fees, from the perspective of the voluntary auditor change, which deserves close attention. Moreover, the thesis set a model to verify the beforehand opinion by choosing 280 A share listed companies as the research sample, no matter whether they have been changed or not between 2008 and 2009.