The Empirical Study On The Influence Factors Of Auditor Switches Of Listed Companies

Accounting information is the main source of investment decision for investors. The quality of accounting information always determines the right investment decisions. Auditors and the audit function is the last line of defense which to guard against false accounting information flooding in the capital markets. When auditors identify false accounting information by the listed companies and disclose it, they are faced with dismissal. The phenomenon of the auditor switches has being gotten more and more frequently in our capital market. And the situation of the auditor switches has also being gotten more and more complex. The phenomenon has already raised our supervisory department, the academic as well as the public to pay more attention. However, concerned the present findings, there is no consensus on the primary causes of the auditor switches at home and abroad. Therefore, we should unify the research results which from domestic and foreign on studying the factor which influencing the auditor switches in our listed companies.On the basis of the study of the auditor switched by domestic and foreign scholars, this paper takes a variety of theories about contractual relationship between the listed companies and the auditors and the process of development as theoretical guidance. In terms of the relationship between the listed companies format, making use of normative analysis and the empirical analysis of the independence of the T test and Logistic regression methods to study on the main factors and the degree of them which impact the auditors switched deeply and systemically. The empirical results show that:non-standard unqualified audit opinion, the earnings management ability, the financial situation, whether or not in financial distress, audits region factor, controlling shareholder changes and the audit fee are the major effect factors in the voluntary auditor switches. And non-standard unqualified audit opinion, the financial situation and audits region factor are the most main influencing factors than the others. But the rank of the accounting firms is not very remarkable to the auditor switches.The year of 2007 is the first year that implements the new accountant and the audit criteria. With the new accountant and audit criteria implementation, the accounting quality of listed companies has been improved. The situation of the auditor switched also has new features. To recognize the influencing factor of voluntary auditor switched can find and inhibit the improper motives and potential risks of listed companies effectively. It is practical significance to promote our stock market development healthily.