Study On The Impaction Of The Corporate Governance Structure For The Auditor Change

In recent years, it is a common phenomenon that China listed corporate governance changes its auditor, and this phenomenon occurs more and more frequently. Even though part of this is based on reasonable causes, at the same time also lurk for a certain number of improper changes, so far as to there is no lack of damage the independence of auditor. With the improper change of auditors, many problems of listed companies is hidden and then to go away. As a kind of institutional arrangement to influence and restrict the changing of auditor, the corporate governance structure, affects the company to choose or change the auditor’s decision. An effective corporate governance structure can provide an environment for the auditor’s independence to ensure the audit quality, while a weak corporate governance structure can hardly have the supervision of auditor’s reasonable employment and replacement. That is to say the effectiveness of corporate governance structure can directly influence the auditor’s independence and restrict the randomness of auditor’s changing. Currently, the study on auditor’s changing is mainly focus on some aspects such as the influencing factors, motivations and economic consequences and so on; the role of corporate governance structure has not caused enough attention. There is few study on the Corporate governance structure’s impact on auditor changes, or only for a single characteristics of corporate governance structure. So this thesis will focus on the impaction of the corporate governance internal structure for the auditor’s changing.In this paper, the principal-agent theory is the theoretical basis to the impaction of the corporate governance structure for the auditor’s changing, using the Logistic model to analyze the related data in2012. Research findings that the nature of the ultimate controller, the proportion of independent directors, and board size have a significant effect on the listing Corporation’s auditor changing, and the set up situation of audit committee, board of directors and board of supervisors diligent degree’s influence on auditor changing is not significant. Finally, according to the results of empirical analysis, this paper presents the corresponding policy recommendationsLimitations of this study are mainly manifested in three aspects:firstly, this paper only studies the internal structure of corporate governance, not related to external structure; secondly, only using the data in2012, can not reflect the dynamic changes of the data process, needs to do some further research; finally, limited to data collection, cannot do some study on the professional background of The independent directors and supervisors.