Firm Performance Following Auditor Changes For Audit Fee Savings

Kam C. Chan, Barbara Farrell, Patricia Healy, Picheng Lee
2011 Journal of Business & Economics Research  
<span style="font-family: Times New Roman; font-size: small;"> </span><p style="margin: 0in 0.5in 0pt; text-align: justify; mso-pagination: none; mso-hyphenate: none;" class="MsoNormal"><span style="color: black; font-size: 10pt; mso-themecolor: text1; mso-bidi-font-weight: bold;"><span style="font-family: Times New Roman;">This study examines stock and earnings performance subsequent to auditor changes by firms specifically for audit fees savings without any other apparent regulatory or
more » ... ure issues. Results show that there is mild evidence of positive stock return and earnings performance after changing auditors. There is also no significant difference in company performance among different types of auditor changes when looking at auditor changes among and between Big 4 and non-Big 4 auditors. Finally, we find that the positive firm performance is mainly among auditor changes made before 2003.<span style="mso-spacerun: yes;"> </span></span></span></p><span style="font-family: Times New Roman; font-size: small;"> </span>
doi:10.19030/jber.v9i10.5949 fatcat:jwg65bcxzjchjkryqf7kqp2zhe