Research On Post-IPO Auditor Change And Company Performance Under The Perspective Of Accrual Earnings Management

Due to the existence of information asymmetry,investors' understanding of IPO companies relies heavily on intermediaries.For IPO companies,because the company did not publicly disclose the company's financial information before listing,the information asymmetry between the company and the investor is higher,so the auditor's choice and change in the company's IPO process has more information transfer.In addition,the existence of the auditor's grade difference makes the IPO company's auditor selection behavior represents the level of assurance of the financial information quality credibility,and the company's change auditor will also convey more potential information to investors.This paper focuses on IPO company auditor changes and post-marketing performance changes,and introduces accrued earnings management to better explain the company's post-IPO auditor changes and post-market performance change mechanisms.Based on the accrued earnings management of the company's initial public offering,this paper explores the impact of accrued earnings management of different degrees and different directions on the company's post-IPO auditor changes,and further studies the company's IPO post-auditor change type.After the company's listing,the company's earnings management level,degree and changes in the company's performance should be considered.The results of this paper show that when the auditor changes from “non-Ten” to “Top Ten” accounting firm after the company goes public,the company's performance will decline,but this happens only in private listed companies.For state-owned listed companies,changes in post-IPO auditors will not cause significant changes in company performance.The analysis of the possible factors that led to the auditor's change after the IPO found that only the company that performs the positive accrued earnings management before the listing will have an auditor change.The higher the company's IPO before the accrued earnings management level,the IPO post-change auditor The greater the probability.Further research indicates that changes to a highly reputable auditor after the company's listing will reduce the company's tolerance to accrued earnings management and improve audit quality.Due to the discontinuous earnings management before and after the company's IPO,it will lead to a decline in the company's IPO performance,and the accrued earnings management level has a significant intermediary role in the relationship between auditor changes and company performance after the IPO.The conclusions of this paper indicate that the auditor's market reputation mechanism is effective,that is,high-reputation auditors can effectively reduce the accrued earnings management behavior of listed companies and maintain their own reputation in the market and ensure their sustainable development.Audit quality.At the same time,for IPO companies,the auditor's changes can't slow down their performance.On the contrary,the auditors who hire higher reputations can exert the signal effect of their reputation and enhance the reputation of listed companies,but at the same time have greater For companies with positive margins for accrued earnings management,it will accelerate the reversal of IPO companies' performance.The research in this paper enriches the literature on auditor changes and company performance.The conclusions of this paper provide a reference for the regulatory authorities to pay more attention to the auditor's change behavior after the company's IPO to maintain the capital market order and investors to protect their own interests.