An Empirical Research of Auditor Switching Prior to The Public Offering of The Newly Listed Issues In Taiwan

• Main Authors: Ming-chuan Tuan, 段明娟
• Other Authors: Chan-Jane Lin
• Format: Others
• Language: zh-TW
• Published: 1996
• Online Access: http://ndltd.ncl.edu.tw/handle/64696317932558484901

碩士 === 國立臺灣大學 === 會計學研究所 === 84 === The main purpose of this research is to examine whether the newly listed firms will employ more credible auditors,if auditor switching occurred prior to the public offering,and to investigate the relationship between underwriter prestige and auditor switching in Taiwan. We make conclusions from this empirical research as follows.First, the newly listed firm tents to replace a small auditor with a more reputable one, if auditor switching occurred prior to the public offering.Second, there is no significant relationship between underwriter prestige and auditor switching of newly listed firms.Third,the smaller the firm size, the more likely the newly listed firm switches to reputable auditor. Fourth,the average rate of sale growth is not significantly related to the auditor credibilty, while the observed sample is defined as those who changed the auditor during the four years before the public offering. However, the average rate of sale growth is negatively related to the auditor credibilty, if the observed sample is defined as those who changed the auditor during the three years before the public offering. Finally, the firm age is negatively related to the auditor credibility, when the newly listed firm switched the auditor prior to the public offering.