Media Supervision?Auditor Changes And Market Reaction

With more and more developed information society,the media is not only the most important channel of information transmission,but also as one of the external governance mechanism of the company,has become an important reserve mechanism.In recent years,many of the governance of Listed Companies in our country are by the media the first disclosure and into public view,such as Yinguangxia event of financial fraud(2001),various shady fund,Sanlu milk powder incident,melamine(2008),Wuliangye about alleged use of related transaction and the interests of the transport behavior(2011),purple Xin Pharmaceutical financial fraud(2011);eventually under the supervision of the media caused the attention of all stakeholders and even the administrative intervention and to handle the event.This also shows that the media as an important external governance mechanism,the governance environment for the capital market has a good supervisory role.China's listing Corporation must employ an independent third party that is the accounting firm to audit the company's financial statements in order to ensure the reliability of accounting information.Accounting firm's financial statement audit is a market process,in this process,the accounting firm,the management of the company and the shareholders of the company to form a mutually restricted relationship.When managers receive a benefit drive,management can use to hire the right to choose,by changing the accounting firm to achieve its self-interest.In recent years,more and more listing Corporation change the phenomenon of accounting firms,and some companies even in a year of frequent replacement of the firm,which had to cause our attention.Auditor changes behind there may be potential profit driven,audit company management may through the change of accounting firms to avoid adverse audit opinion,or to dismiss to threaten CPAs meeting management layer of earnings management,accounting firm out to consider the survival to collusion management.These have a serious impact on financial statements audit quality,hinder the healthy development of the audit market.Around the above topic,firstly,the domestic and foreign about media supervision,auditor changes and the market reaction to a series of related literature were classified and organized,at the same time,using economics signal transmission theory,principal agent theory and efficient market theory of media supervision,the trial division change and market reaction between the relationship between the theoretical analysis,and puts forward the hypothesis.Using Excel for data processing and calculation,analyses the supervisory role of the media for the auditor change matters that affect the media's negative reports promote the listed company's auditor change matters;and to test the media for the influence degree of the different nature of the listed companies,this media for the attention of state-owned listed companies is higher than that of the non state-owned listed companies,but the number of the negative reports are significantly lower than those of the non-state-owned listed companies.Using SPSS22.0 analysis software for research samples and control the market reaction of mean value test,found the difference of market reaction to the research samples and control samples;at the same time to test the market reaction to different nature of the company auditor matters,found state-owned listed companies,the market reaction is relatively smooth and non state-owned listed companies market reaction fluctuates greatly.In the end,the market reaction of media supervision and auditor change interaction is tested,and it is found that the market reaction is positive after receiving the negative reports from the media.Based on the above research conclusion,this paper from the media,the auditor change main body,external regulation environment three different angle of the main body,the relevant policy recommendations were proposed,and describes the contribution of th is paper and shortcomings and looks forward to the future research direction.