The Relationship Between Auditor Tenure And Stock Price Collapse Risk

The registered accounting audit plays an important role in strengthening the corporate governance,improving the transparency of financial information and maintaining the healthy development of the capital market.As the key field of audit research,audit firm tenure(hereinafter referred to as auditor tenure)is one of the hot issues in the research and discussion of the academic circle.The characteristics of the audit term itself,which can be quantified,provide convenience for the empirical study.The duration of the audit term will have a different impact on the audit professionalism and audit independence.Based on this,this paper discusses the impact of auditor tenure on stock price crash risk from a theoretical analysis and empirical perspective,in order to play a role in enriching related research to a certain extent.Based on the literature review of the audit tenure and audit quality and the related factors of stock price crash risk,this paper empirically studies the impact of auditor tenure on stock price crash risk.Specifically,we use the listed company's chief auditor's continuous term of office and the share price of listed companies as an empirical research index,and test the hypothesis by statistical regression analysis,which is U type relationship.The study found that the risk of the stock price collapse is the lowest when the audit term is 7-8 years,and both too short and too long will lead to an increase in the risk of the stock price collapse.At present,the domestic academic circles have studied the influence factors of the risk of the stock price collapse from many angles,but lack the perspective of the term of the audit term.To some extent,this study has made up for the gaps in domestic research.The study of this article is of great significance to strengthening the supervision of audit tenure,improving the quality of audit and maintaining the healthy development of capital market.