| Foreign scholars study found that high legal risk will lead to the auditor change. Now our country is in economic transition period, with rapid growth of the economy and the growing differentiation of interests, economic disputes between companies, listed companies rules and legal cases are common. Especially nearly two years of green earth and other violations, the academia started research on the legal risks of the boom. Legal arbitration and dispose of listed companies, not only may cause significant loss in economic and reputation can also lead to the audit firm shall be punished,"YinGuangXia","kelon electrical", and "green earth" accounting firm therefore be punished. So companies and firms have to focus on the legal risks and legal environment. Would the author thinking about listed companies for the incumbent auditor litigation arbitration and illegal disciplinary dismissal, choose a lower quality of the auditor; Or auditors consider the auditees’ own potential risk is too big, their audit income cannot offset the risk cost, or not to be listed company, refuses to conspiracy to voluntarily quits.China is a country of economic transition and rapid economic development of countries. In the process of the development, our country adopt development strategies from the development of the external-oriented economy in the eastern coastal areas, and then driving the development of central and western areas, and so result in the regional society, economy, culture and law and so on many aspects are different. According to fan gang, wang xiaolu,(2011) research, macro legal environment from region to region difference is very big in China, the eastern region was significantly higher in the central and western regions. External legal environment more severe, the auditor will lead to greater the law risk. Facing the gradually perfect legal environment, listed companies as well as domestic auditors have not may like the past regardless of legal risk. So listed companies in China are illegal punishment or legal action will take into account the external legal environment of listed companies? Auditors in the process of career will consider the effects of the external environment? When the company’s own legal risk is bigger, and in severe external environment of the listed company will be how to choose the auditor? The auditor and how to choose the customers? These problems are merit of the concern and study. So in order to fully dig the effects of legal risk, it is necessary for legal risk affects the auditor change behavior comprehensive, system, in-depth analysis and research. To this end, this article studies from the perspective of legal risk to the auditor change. To strengthen the study of the issue of audit profession risk prevention awareness and remind regulators for a tougher regulatory policy has indispensable academic meaning and actual meaning.The article is split into six parts, the chief substance of these chapters is arranged as:Chapter1is introduction. This part the author first presents the research setting of legal risk and auditor changes, and further excavation in this paper, we study the theoretical significance and practical significance, then introduced this article research mentality and the study content, and the study methods and study framework of this article, finally, were discussed in this paper, we study innovation, is for the full text of the blanket.Chapter2is literature overview. The section is split into three parts of this existing related literature review, the first is the legal risks related literature review; Influencing factors related literature review, the second is auditor change mainly includes the concept of "clean" audit opinion, the financial dilemma, the auditor differential demand theory and the concept of litigation; The third is the legal risk leads to the auditor changes literature review, this article mainly from the enterprise microscopic legal risk analysis and external legal environment two aspects. To review the existing literature and evaluation, sure, on the basis of domestic and foreign research present situation, the author gradually to find opportunities to study and research direction.Chapter3is the theoretical analysis and hypothesis is put forward. Research theme of this chapter for this article provides a theoretical framework, respectively from the theoretical basis of legal risk audit insurance related theory hypothesis, auditor change audit contract theory and related legal risks lead to auditor change theory to explain and analysis, this paper expounds the theoretical foundation of this article, and puts forward four research hypotheses of this paper, respectively, for the below design provides guidance and theoretical basis for the study.Chapter4is empirical research design. In this chapter the author first of all, in this paper, the choice of sample to make detailed instructions, and then on the basis of the existing literature is selected according to the needs of the article explain variables, explained variables and control variables measure and definition of these variables, according to the third chapter puts forward the research hypothesis three Logistic design model for empirical test for the rest of the article provides research foundation.Chapter5is the empirical findings and study. The section the author apply the fourth part design three Logistic model for empirical test using Statal0.0, first is for litigation and arbitration rules of statistical analysis, and then has carried on the descriptive statistics of the whole samples, then the samples Sperson correlation analysis, finally the three replacement model of multiple regression analysis and micro enterprise legal risk measure after further inspection.Chapter6is the research conclusions, innovative points, problems and the future research. Through above research and analysis, this chapter the author mainly elaborated this article research conclusion, then this paper innovation points are summarized, and then to research the limitation and the insufficiency, the tentative study in this paper, there are deficiencies in the direction of further research are put forward.Through legal risk and auditor change of empirical research, This paper gets the conclusions as follows:First, the higher the potential legal risks of listed companies, the probability of auditor change behavior. Through empirical research, the author found that customer behavior is significantly positively related to potential legal risk and auditor change. On the one hand, when the listed company under sanction or face legal action, the more legal risk is bigger, the greater the demand for standard audit opinion, and to dismiss the "prudent" auditors to find relative "loose" the greater the likelihood of auditor; On the other hand the auditor in understanding the auditees violations and litigation related arbitration, will consider the potential legal risks of listed companies, listed companies if the announcement of major litigation, arbitration and violations are dispose event, the more that the company’s legal risk, the greater the auditor resigned the greater the chance of employment. Second, the macro legal environment more severe, the greater the opportunities of auditor change. Hypothesis2to validate the author found that the behavior is significantly positively related to macro legal environment and auditor change. Suggests that the more perfect legal system, firms in order to avoid auditing risks, maintain their own reputation, will tend to choose a lower risk of the customer, lead to quit hired behavior; Legal environment is more severe, the listed companies in order to avoid lawsuits dismissed the auditor in order to realize the likelihood of a clean audit opinions.Third, arbitration and illegal disciplinary event happened to listed company, the more legal environment is more severe at the same time, the greater the chance of auditor change. Microscopic legal risks of listed companies, the greater the showed that the less corporate governance level, the listed company’s reputation will be hurt, so in order to stabilize the confidence of investors of arbitration and the rules of litigation events listed companies higher request to the standard audit opinion, the legal environment of listed companies at the same time, the more severe, the client and the auditor were fined the possibility of larger, in order to reduce the potential risk of prosecution auditors and clients are more inclined to change auditors.Fourth, the larger legal risks of listed companies, the easier for opportunistic changes. Through empirical analysis the author found that the change sample will change because of the high legal risks of listed companies is relatively "loose" auditors to their audit, namely the legal risks of listed companies, listed companies are more likely to from, into the top ten by ten for opportunistic changes has won a "clean" audit opinion expectations.This article research mainly has the following innovation:First, on the research content, impact on auditor changes related research from the perspective of legal risk has been neglected by the researchers in our country. This paper focused on the legal risks and external risks of listed companies of the auditor to hire and dismiss the influence of the listed companies, expected to rich legal risks and the auditor changes literature information.Second, most previous scholars used multiple micro financial indicators to measure enterprise legal risk, explore impact on auditor changes. Feng Yanchao and lai xin liang (2010) litigation arbitration and illegal disciplinary action for the first time the two core index to study the legal risks of listed companies influence on audit fees and audit opinions, this article use the metrics listed company corporate legal risk method research of microscopic legal risks impact on auditor changes, realize the extension of the study method of auditor change.Third, on the research perspective, expand the legal risk impact on auditor changes new research perspective. Previous scholars mainly from the legal risks of listed companies or legal environment of a single dimension study of auditor change. This article draws on domestic scholars Pan Keqin (2011) method of microscopic legal risks and legal risks can be divided into enterprise external legal environment differences between two levels to analyze its impact on auditor changes, and then USES empirical method to research the law litigation risk and domestic contact between auditor changes, and expect to expand domestic research on this field. |
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