Revaluation Effect of Auditor Switch in Malaysia and its Determinants
A body of accounting literature has grown on the phenomena of auditor switches mostly in developed countries from the research by academics, accounting professionals and industry experts because of its strategic implication for a firm value, credibility of financial reporting and the cost of moni...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English English |
| Published: |
2000
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/9266/1/GSM_2000_7.pdf |
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| Summary: | A body of accounting literature has grown on the phenomena of auditor
switches mostly in developed countries from the research by academics, accounting
professionals and industry experts because of its strategic implication for a firm
value, credibility of financial reporting and the cost of monitoring management
activities. Despite the growing concerns shown in the developed economies about the
consequence of auditor switches, which are associated with substantial direct and
indirect costs, little attempt appears to have been made in Malaysia to examine the
possible reasons for changing auditors or to estimate the shareholders wealth
implication. Thus, the objective of this study is to make a start in examining this very
significant accounting activity in a fast developing Malaysian economy, perhaps, to
serve as an example of more studies in emerging countries. The particular objectives
are (a) to ascertain determinants of auditor switch in Malaysia, (b) to examine the
hypothesised relationship between the changes in firms' characteristics and choice of
quality differentiated audit firms and (c) to ascertain the share valuation effect of auditor switches in Malaysia. Audit firms are clearly ranked as belong to a higher
and lower prestige category in this country, which enables, it is hoped, a search for
the revaluation effect. |
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