An Analysis On The Influencing Factors Of Accounting Firms Change

In China's security market,the behavior of accounting firms change is increasing year by year, there are many irrational changes, and the changing situation is more complex. As an important matter, accounting firms change has gradually caused the attention from investors, stakeholders, scholars and related entities. So why this behavior has attracted so much attention,to sum up, the main reason is this behavior may cause some adverse economic consequences. For example, some listed companies want to avoid adverse audit opinion through changing the accounting firms, and then achieve their motives to manipulate profit. For the investors and stakeholders, the behavior of accounting firms change can send signals, according to this information, they can make investment decisions. If there are some irrational changes in the audit market, it will convey the wrong signal, and mislead the investors and stakeholders,as a result they make some wrong decisions, by the end this will go against to heir interests. Based on this background, it is necessary to analyze the behavior of accounting firm change.Due to the constant improvement and development of security market, the auditing environment has been changing constantly, the influencing factors are also changing, and therefore study the factors of accounting firms change becomes more meaningful. Through research, can enhance investors and stakeholders'attention on the accounting firms change behavior, and then improve their awareness of risk prevention, also beneficial to the relevant departments'supervision. Under the current auditing environment, this is available to prevent market failure, also can promote China's security market develop healthily and orderly. Based on the relevant literature, this article select China's A share listed companies in 2008 as primary sample, test the main influencing factors of accounting firms change in 2008. There are five chapters in this article.The first chapter is an introduction of the research background, research significance, research methods, content and the innovation of this paper.The second chapter is the statement of related literature. Firstly, this paper states the related literature from foreign and domestic aspects, secondly, make some relevant comments, and then come up to this research approach. Because of the different research period, the conclusions are not the same. After reviewing the related literature written by foreign scholars, come to the conclusion that audit opinion, financial distress, executive changes, the accounting firm differential theory, and the audit fee is the main influencing factors. In the domestic results, there are some difference compared to foreign literature results that is the geographical features between accounting firms and listed companies, and then together with the audit fee are the main influencing factors of accounting firms change. On the basis of these related literatures, find that most foreign and native scholars use ST or *ST identify financial distress. After reading some literatures about financial distress, most scholars think that the weak corporate governance of listed companies is likely to make a financial distress. Therefore, in this paper, add an index to study its influence on accounting firms change. According to past related studies, use the largest shareholders of listed companies as an alternative variable, study its influence on the accounting firms change. In addition, most existing research have focused on the basic period before 2003, few studies in recent years, in order to study the influencing factors of accounting firms change in recent years, in this paper, use the related data of 2008 so as to find the latest status and features of Chinese listed companies'changing accounting firms.The third chapter is the statement of institutional background and current situation of accounting firms change. Firstly, this paper state the institutional background from aspect of audit market characteristic and related supervisory politics, and find that china's audit market concentration is low, the current audit industry is highly competitive localization is still very high, accounting firms face lower legal risk, and in addition audit quality is difficult to observe, these characteristics make listed companies easier to change accounting firms, and this always become a selection for companies to achieve their motives. Secondly, this paper analyze the phenomenon of accounting firms change between 2003 and 2008, find that in this period, the quantities of listed companies'change accounting firms increased year by year.The fourth chapter is the empirical study of accounting firms change. Firstly, put forward assumptions and establish research model, and then select the appropriate explanatory variables and control variables, to test main influencing factors of the listed companies'change accounting firms in 2008 with empirical research methods. The empirical results show that: audit opinion, the geographical features between listed companies and accounting firms, the controlling shareholders and senior management change, the proportion of the largest shareholder, the accounting firms differential are the main factors. And then, make a sensitivity analysis test with the method of using EPS instead of ROE, the result shows that the research model and empirical results are reliable.The end of this paper is the conclusions. According to empirical results derived from the previous chapter, achieve all the conclusions of this article, and then put forward policy proposals, at last point out the limitations of this study.