| With the Shanghai Stock Exchange and Shenzhen Stock Exchange have been established in1990and1991, China’s securities regulatory system has improved steadily. When a listed company due to certain reasons for decline in performance or mismanagement, and losses the conditions the listed companies should have, it will be implemented the special treatment. If it cannot correct within the deadline, it will exit the securities market, and losses the status of the listed companies. We find that every year there are a lot of companies be complemented special treatment, however, there is a little of them truly be terminated the qualifications for listing. Associated with this phenomenon occurring is the frequent changes of ST Companies’auditors. It includes the normal accounting firm changes, but also includes many companies change he firm to buy the audit opinion to cover up the false financial information. As an unique group, due to the urgent need to get the recognition of the CPA in profitability year, ST companies have a strong motivation to change the accounting firm to hide its major issues. This behavior of malicious changing accounting firms will bring serious economic consequences. It may result in the junk stocks continue to remain in the securities market, and China’s securities market cannot develop healthily and orderly. At the same time, the authenticity of the financial statements cannot be guaranteed, so that the majority of investors lose the confidence for the securities market. To the audit market, it is not conducive to the healthy competition of the accounting firms, and it also makes the damage to the independence of the audit and audit quality decreases.Foreign scholars have achieved abundant research results about accounting firms changes. China’s securities market started late and the domestic research on accounting firms changes mainly concentrate on the the firm changes affect factors, and mostly do not distinguish types of listed companies. Abroad, there is research to show that in the listing process, the company will want to replace the local accounting firms to take advantage of the reputation, prestige and expertise of helping the stock to go public of the national large-scale accounting firms.The companies whose operating activities are in the high-speed growth are more likely to choose the larger accounting firms, while the companies whose volume of business shrink will choose the smaller accounting firms.In our country, the financial position, operating performance, as well as facing regulatory severity of ST companies and non-ST companies are very different. Compared with non-ST companies, ST companies are more incentive to change accounting firms. Therefore, ST is an excellent platform for our research on accounting firms changes.This paper make ST companies as an entry point, combined with China’s special institutional background and the characteristics of ST companies, hope to solve two problems:first, compared to non-ST companies, ST companies more inclined to change accounting firms; second, what are the characteristics of ST companies in selecting accounting firm. This helps to better grasp the intent and direction of ST company changes accounting firm, and put forward the measures of standardizing the behavior of ST companies’ accounting firms, reduce the behavior of malicious accounting firm changes, protect the interests of investors and creditors, and make the securities market and the auditing profession develop healthily and orderly.This paper make ST companies as the object of study, and we can understand the ST companies have more strong motivation to change accounting firms than non-ST companies and ST companies will consider what the characteristics of the firm. From a theoretical sense, on the one hand, this paper expands the perspective of the accounting firms changing in our country. Domestic study on the change of accounting firms rarely distinguish the type of listed companies, and they mostly concentrated in the study of the impact factors of changing. This paper distinct between ST and non-ST, and researching the characteristics of accounting firms that ST companies choose is a more innovative research perspective. On the other hand, this paper provides a theoretical support for the development of relevant securities regulatory authorities in China regulatory regime and the improvement of the auditing standards system. From a practical sense, on the one hand, it contributes to find ST ulterior motive, potential risks and the problems of accounting firm effectively. Then we can improve the delisting system in China and take a more timely and effective regulatory measures, in order to promote the healthy development of China’s securities markets and the auditing profession. On the other hand, to on the other hand, it can promote them to increase their own awareness of risk prevention, protect the legitimate rights and interests of investors and reduce their risk in the decision-making process.The main content of this paper is divided into six parts:Chapter Ⅰ, Introduction. This paper briefly introduces the research background, research significance and methods, explains the ideas and framework of this study, and put forward the innovation of this paper.Chapter Ⅱ, the literature review. This chapter main narrates the research of the influencing factors of changing accounting firms at home and abroad. From a foreign point of view, the research that distressed companies change accounting firms can be divided into two categories according to the different initiator. One’s initiators are the listed companies. Distressed companies impact the behavior accounting firms’changing in two ways. One is because that the management of listed companies has the motive to buy the audit opinion. Another is that distress causes to change some of the factors that affect the accounting firm changes. The other’s initiator are accounting firms. It is because of the considerations of the litigation risk. From a domestic perspective, the research are basically in reference to the basis of the theories and methods of Western literature, has been concluded in the practicality of our inspection, Motives changed the accounting firm nor consensus, a separate company on ST or financially distressed companies studied literature and even fewer. But we can find that the main factors affecting accounting firm changes in China are a non-standard audit opinion, financial distress, the firm geographical factors and firm differentials. These findings provide very big help to my paper.Chapter Ⅲ, the theoretical analysis. First, we define two core concepts——ST companies and accounting firms changing. ST companies include*ST companies which have be implemented the delisting risk warning and ST companies which have be implemented the special treatment. Accounting firms changing includes the listed companies change accounting firms and accounting firms take the initiative to resign. Second, this paper introduces the theories it relies on, which include the economic assumptions, the principal-agent theory and signaling theory. And on the basis of the theory, the paper makes an analysis. Third, it introduces the background of the system. ST companies have a strong motivation for changing accounting firms is because of the existence of delisting system. Finally, it analyzes the behavior of the listed companies changing accounting firms. It starts with the greater crisis that ST companies are facing than non-ST companies. So, ST companies have more incentive to change the accounting firms.Then,the paper analyzes that ST companies will tend to what characteristics the accounting firms have in selecting accounting firms.Chapter IV, the study design. This chapter proposes four hypotheses on the base of Chapter III, and take ST companies in China’s Shanghai and Shenzhen Exchange during2007to2011as the research objects,and construct two logistic model for the first hypothesis, and after three hypotheses respectively. For the first model,we define the explanatory variables——the accounting firms changing, the explanatory variables——whether ST companies, control variables——company size, asset-liability ratio and audit opinion sample companies the same number of sample companies control group of non-ST as a model of the sample for the first model and define the explanatory variables-change the accounting firm, the explanatory variables——whether ST companies, control variables——company size, asset-liability ratio and audit opinion sample companies the same number of sample companies control group of non-ST as a model of the sample; settings and define the explanatory variables——change the accounting firm for the second model, the explanatory variables——audit opinion firm differentials, firm geographical control variables——company size, asset-liability ratio, using a the ST sample of the company as a model for the second sample, and descriptive statistics analysis.Chapter V, the empirical results and analysis. On the basis of the correlation analysis of the two models, to logistic regression analysis separately. To the first model of the empirical test results show that compared with non ST company, ST company accounting firms are more likely to change; To the second model of the empirical test results show that Non-standard opinion issued by the Public accounting firms which hired by ST companies last year, or the greater of the differential, and not in the same region with the ST company, ST companies are more tend to change accounting firms.Chapter Ⅵ, the research conclusions and policy recommendations. This paper research conclusion combined with the theoretical analysis and empirical results, and against on the present situation and the research conclusion of the changes of accounting firm, put forward the relevant policy Suggestions from the perspective of system and both sides change subject.The contribution of this paper is:First, innovative research perspective. For the change of the accountant agency, domestic and foreign existing research mainly focus on the impact of changing factors, the reaction of the market after changes, and information disclosure aspects of change. At present, the study of the changes of the accountant agency basically isn’t to distinguish the types of listed companies. In this paper, considering the ST company in the business situation, financial policy, and regulation faced by is different from general listed companies, it is bound to exist accounting firm changes in the different motives about other companies, in choosing accounting firms will also present a different demand. Therefore, in this article, the listed company was carried out to distinguish, study focused on influence of accounting firm characteristic of ST company which changes its accounting firm behavior, want to be familiar with ST companies on the change of accounting firm behavior tendencies, to be able to put forward more regulation and management Suggestions.Second, innovative in research data. The new accounting standards and auditing standards had been implemented in our country in2007,under the new criterion system, corporate securities regulatory environment is more stable, enterprise mode of operation and management performance as well as to the accounting firm’s employment have appeared in the new situation. In this reason, aiming at A-share listed companies which had been special treatment during2007-2011, study about it’s behavior of change the accounting firm. This seems to be more real to reflect the new situation on the choice of sample data, after the new accountant auditing standards system has been establishment. So as to make the research conclusion of this paper is more timeliness and reliability.The deficiencies in the research process as follows: First, in this article, the variables are divided into standard and non-standard audit opinion type, but in fact, non-standard audit opinions also includes four different kinds of types, the influence of the different types of audit opinions on ST company which changes its accounting firm behavior may not the same, rough division makes the results of the study is not enough rigorous.Second, on the choice of variables is not perfect enough in this paper, This article selects the firm characteristics as explanatory variables is much more critical, but the firm characteristics affect ST companies’ behaviour are still a lot, this article is unlikely to end all the relevant variables, it remains to be further improved in the future. |
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