The Motivation And Economic Consequences Analysis Of Frequent Change Of Accounting Firm In China

In recent years,the number of listed companies in China changing their accounting firms has continued to increase,and some listed companies even change their accounting firms frequently.2021,there were 435 listed companies changing their accounting firms,accounting for 9.05% of the total number of listed companies.In this context,the phenomenon of listed companies changing accounting firms is gradually attracting the attention of investors and regulators.As an external independent third-party assurance institution,accounting firm assumes the responsibility of "gatekeeper" for the quality of financial information in capital market,which is an important way to improve the quality of financial information in capital market.Therefore,the motivation and consequences of the change of accounting firms by listed companies can help reduce information asymmetry,facilitate external investors to make correct decisions,and promote the healthy development of the securities market.For this reason,this paper selects a company that has changed its accounting firm four times within three years as a case study,which is also the first A-share "non-standard" delisting stock and has certain typicality.This paper is based on three main theories,namely principal-agent theory,signaling theory and "economic man" hypothesis theory.Then,the two main concepts of this paper are defined,which are the types of accounting firm changes and the definition of frequent changes;secondly,after the introduction of the relevant system in China,the basic situation of changing firms and frequent changes of listed companies in China are systematically organized and analyzed;again,in the case section,the development history,shareholding structure and profitability level of Yinji Onyx and the multiple In the case study section,we introduce the development history,shareholding structure and profitability of Yinji Encarbon,and the change of accounting firm for several times,and analyze the motivation of changing accounting firm of Yinji Encarbon from five aspects,including: responding to financial distress,sending false signals,purchasing audit opinion,controlling audit cost and management change;finally,we analyze the market reaction and the impact on audit quality and financial report quality after the change.Synthesizing the findings of this paper and the analysis of the current situation in China,this paper concludes that listed companies should strengthen and improve internal governance and disclose the reasons for changes in detail according to regulations;investors should stay concerned and alert to the frequent changes of listed companies;accounting firms should guard against the risks brought by changes and cautiously undertake the business of listed companies that frequently change their auditors;regulatory authorities should strengthen supervision and further regulate The supervisory authorities should strengthen supervision to further regulate the behavior of listed companies in changing their accounting firms.