Research On The Information Content Of Auditor Change

In recent years, there is an obvious increase in listed companies changing accounting firms. The information of these events has direct relationship with investment decisions which made by users. Study of auditor changing information contents, which is beneficial to provide a useful basis for all shareholders to analyze the relevant information of listed companies correctly in order to ensure their interests. At the same time, it is also play an significant role in finding differences between our developing market and developed market to tap the potential of Chinese audit service market、promote the development of audit market and improve the efficiency of regulation.We could determine whether auditor switches has information content from the volatility of the share price.Based on the principal-agent theory, asymmetric information theory and signal transfer theory, this paper analyzes the audit market, auditor change problem and information disclosure system and defects of auditor change. On the above basis,this research selects a-share market in China which happened auditor change in listed company from 2012 to 2013 as samples. By using the method of event study, the paper studies on the market reactions of events in order to understand these information content. And also, this paper according to the type of auditor change, the financial situation of companies, the type of the audit opinion before auditor change and the type of firms before and after auditor change to group overall samples, examine if there is an obvious difference among the information user reactions to each group of samples.therefore, we can have a deeper understanding to the information content of the auditor change.Study found that the event of auditor change has certain information content, and generally, investors show a careful attitude. There is a certain difference among different information content in different change of the company type, but is not clear. There are serious lag phenomenon in information disclosure of listed companies. Above shows that the a-share market information disclosure system in China is improved gradually, but because the listed companies dose not completed implement according to the existing regulations, problems as the lag of information disclosure and false disclosure existed. Thus, the narrative and timely information disclosure of the listed companies need to strengthen. Finally, combined with the empirical results, this paper put forward suggestions on improving the current situation of relevant policy from aspects of system and regulation, the affiliated party and audit market.