An Empirical Study On Company Self-interest Characteristic Through Auditor Change

The research on motive of auditor change always launches revolving the auditor's opinion purchase, and has obtained a series of research production. The majority research believed that, the companies possibly change their auditors in order to improve the auditor opinion, but their motive of opinion purchase cannot carry their points through changing auditors. In this case, why so many companies repeatedly change their auditors in China's stock market? So transforming the angle of research view, explore the deep level motive on auditor changes appear especially importantly. Meanwhile Its also has the high theory value and practical significance.This paper emphasized auditor's characteristic, reviewed the auditors which different type companies selected after changing their predecessor auditors whether had the systematic difference from the company's angle, and reveal the real motive of changing auditor. We found that, compare this companies who changed their auditor after receiving the standard opinion, the companies receiving the modified opinion would be willing to choose small auditor, and also glad to pay higher audit expense. The further research discovered that, if the companies had higher stockholder's rights concentration degree and higher the state-owned property right proportion, they would more favor in the choice small auditor and paid lower audit expense. The conclusion indicated that, In this audit market with company grasps the leading power, the companies which have the"premeditation"dismissing their predecessor auditor were in order to prepare for choice specific type accounting firm. This was the benefit obligation result, incarnated the company's self-interest motive. This research conclusion also provided a certain theory reference on the policy implementations on decreasing the state-owned shares and releasing non-circulation restricts etc.