The purpose of this study is to investigate the association between
firms' internal corporate governance mechanism and their auditor
choice and auditor switch decisions and how investors respond to
firms' auditor choice and auditor switch decisions in the Chinese
context. The findings of this study have theoretical and practical
implications. Different from prior studies, we find that, in order
to sustain opaqueness gains, firms with weak internal corporate
governance mechanism and therefore high agency costs may be
inclined to avoid high-quality auditors. This study further
suggests that investors respond differently to different types of
auditor switch (i.e., switching to a larger auditor and switching
to a smaller auditor). There are also practical implications. To
bolster the confidence of the market participants, the regulators
should carefully monitor auditing practices to protect the
interests of investors.
General
Is the information for this product incomplete, wrong or inappropriate?
Let us know about it.
Does this product have an incorrect or missing image?
Send us a new image.
Is this product missing categories?
Add more categories.
Review This Product
No reviews yet - be the first to create one!
Welcome to Loot.co.za!
Sign in / Register |Wishlists & Gift Vouchers |Help | Advanced search
