Study On The Influence Of Executive Change And Auditor Selection On The Economic Consequences Of Enterprises

With the development of the modern company system,ownership and management rights are separated.As the most important human resources of an enterprise,the senior executives endowed with the right of management are bound to have a significant impact on the operation and management activities of the enterprise once the change occurs.Based on this,on the basis of elaborating the theory of audit demand,the theory of social relations network,the short-sighted theory of managers,the modern risk-oriented audit theory,the resource dependence theory and the audit pricing theory,this paper takes the non-financial listed companies of China’s A-share main board from 2007 to 2021 as the research object,and conducts research from the following three aspects: First,explore the relationship between senior management change and auditor selection,based on which the mechanism of action and scenario study;Second,it explores the economic consequences of the change of top management,namely,the impact of the change of top management on the degree of risk faced by the company,the degree of strategic change of the company and the cash dividend payment policy.Thirdly,auditor selection is introduced as a moderating variable to explore the moderating effect of auditor selection on the relationship between executive change and its economic consequences.The study found that companies with senior management changes were more likely to enter into audit contracts with lower-quality auditors,partly mediated by the quality of internal control and the degree of earnings management.At the same time,it is found in the scenario study that when the successor senior executives come from outside the company,the former senior executives leave abnormally,the senior executives change in state-owned enterprises,the marketization degree of the company is high,and the company receives less media attention,the companies with the senior executives change are more inclined to choose lower-quality auditors.In addition,it is found in the study of economic consequences that the change of senior management will significantly increase the degree of risk faced by the company,the degree of strategic change of the company,and significantly reduce the willingness and level of cash dividend payment,and high-quality auditors have a negative moderating effect on the relationship between them.Finally,based on the above research conclusions,this paper puts forward targeted suggestions and measures from the perspective of the company,auditor and relevant departments,aiming at the problems arising from the special event of senior management change of Chinese listed companies in terms of external audit,the degree of risk faced by the company,the degree of corporate strategy reform,and the cash dividend payment policy,so as to help all parties form a synergy.Effectively deal with the adverse impact of the change of senior management,and promote the steady development of the enterprise.