The Research Of Market Reaction On Listed Companies Changing Accounting Firm

In recent years, with the constant development of our country's security market, there is an increasing number of listed company that change their auditors, this incident has already been concerned by the market supervision department, academic circles and even social masses. As the important disclosure information of Listed Company, does it have market reaction on the changing auditors? If it exist market reaction, how can we explain it? if it doesn't exist, what possible cause?This essay, based on sample of the A-share listed companies that change their auditors, studies the following aspects of auditor changes including the characteristic of auditor changes, disclosure of information and the market reaction of changing auditors and so on. The general idea is using the relevant statistical data to demonstrate the market reaction and the potential negative economical consequences of changing auditors, in order to support or give some proposals on supervision policy of security market audit, especially for investors to make reasonable decisions.The essay includes six chapters, the content of each chapter is explained as follows: Chapter one: introduction. This chapter describes the motivation for the study, the research methodology, after that, a review of the positive literatures concerning auditor changing, both domestic and abroad ,is made to serve as an initial point of the study.Chapter two: this chapter makes statistic description of the sample companies . Chapter three: analysis the characteristics of the sample companies and auditing environment. Chapter four: this chapter mainly based on above positive research in this study to test market reaction and make a conclusion. Chapter five: several policy are brought forward based on the abovepositive research results in order to protect audit independence, which is essential for high quality audit.