A Study Of Market Reactions On Accounting Firms' Switches In NEEQ-listed Companies

From January 23,2006 to August 3,2012,from the Zhongguancun science and Technology park launched the pilot of Shanghai Zhangjiang,Wuhan East Lake,Tianjin Binhai New Area,and then in December 14,2013 expansion to the country,the China's first national OTC market regulation by CSRC was born.In July 31,2015,the NEEQ upgraded to the Exchange Trading market,further enriching the multi-level capital market in China.The NEEQ is undergoing rapid expansion stage,10814 companies are taking advantage of seize the opportunity to the capital market.However,the listed companies in NEEQ change of accounting firms frequency is far more than the A-share listed companies.The changes of accounting firms are understood by the international accounting profession as the purchase of audit opinions,China Securities Regulatory Commission clearly stipulates: change the accounting firm as major event should be disclosed to the public disclosure,NEEQ as a exchange trading market regulation by CSRC,there is no exception on this rule.So,investors in the face of this event,whether or not make the market reaction,or make the appropriate investment decisions,it is important to study the market reaction of accounting firm.Through the research on these issues can also be found at this stage the company for firms to the shortcomings of important events disclosure,but also help the company to understand investors attitude for the announcement,can better meet the needs of investors for the event of disclosure,promote the development of the enterprise,this can also help investors to reduce information asymmetry,to protect their investment interests.This paper through query the company's disclosure of the announcement in National Equities Exchange and Quotations,selected the firms which in the August 25,2014 to 2016 to adopt Market-maker Rule and changes of accounting firms to statistical analysis,then selected 144 Samples,by querying the stock price within ten days before and after the change date,using the event study to calculate the actual daily return rate,compared with the expected daily rate of return to calculate AAR,and then calculate CAR,using SPSS23 to test of significance,observe the laws for CAR with the change of accounting firm before and after the announcement.After research I found whole sample did not have a significant negative response to the change of the accounting firm,and the market had a significant difference for initiative publish the reasons for the change of accounting firms or undisclosed the reasons for accounting firms change.Initiative announce the reasons for change has brought bull new,in contrast the CAR was significantly negative.the same time,for change the firm size of significantly smaller companies,and the size of the firm significantly bigger,The market reaction showed significant differences,but the market reaction in the event before the announcement date,perhaps bacause information leakage so the market made an early response.