Corporate Governance And The Auditor Changes

At the beginning of the 21 st century,financial fraud of Enron caused bankruptcy of Andersen,international "BIG 5" reduce to the "BIG 4".The scholars found that corporate governance was the most important reason to result in auditor change,they began to study the effect of corporate governance on auditor change.Although the CSRC listed auditor change as company regulatory focus since 2004,especially in recent years,the speed and scale of auditor changes increased rapidly.Corporate governance is the essential cause of the auditor changes implemented,therefore,this paper will research the influential factors of auditor changes from the perspective of corporate governance.This article is based on the listed companies that change the auditor in China's a-share listed from 2009 to 2013,and research the relationship between corporate governance structure and auditor change comprehensively by the empirical study.We chose the actual controller type,ownership concentration,board size,proportion of independent directors,proportion of management sharehold-ing,management changes,duality of chairman and general manager,the audit committee eight quantifiable variables from ownership structure,the characteristics of board of directors,manageme-nt behavior,the audit committee four level respectively,4 set of assumptions is presented to test the influence of corporate governance on auditor change.And in order to control the deviation of empirical results that affect auditor changes,literature involved in the corporate governance factors as control variables,including the previous audit opinion,the size of company,lev,roa,audit fees and regionality.Studies have shown that the auditor change and corporate governance factors was correlated on the whole.In terms of specific corporate governance variables,the type of ultimate controller,ownership concentration,managerial ownership,management change,duality of management and the audit committee and so on,six characteristic variables significantly affect decisions to the auditor change of listed companies,the board size and the proportion of independent directors was not correlated.Based on the find in the study that the problem of corporate governance and auditor changes,proposed four policies recommendations:first,accelerating the reform of state-owned enterprises to achieve a diversified ownership structure;second,perfecting board system and playing a supervisory role of independent directors;third,improving the management of its stake to further develop the equity incentive effect;at last,strengthening the supervision of auditor change behavior,standarding the information disclosure of listed companies system.