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Market Reactions to Auditor Switches in Australia: The Impact of Individual Auditor Brands

Project Member(s): Lam, H., Ferguson, A.

Funding or Partner Organisation: Accounting and Finance Association of Australia and New Zealand (Accounting & Finance Association of Australia and New Zealand - Research Grants)

Start year: 2013

Summary: This project investigates how investors respond to firms switching auditors in an Australian setting. Using a sample of voluntary auditor switches by ASX-listed firms over the period 2000-2012, we analyse how individual auditor brands within the Big 4 would differentially impact the market reactions associated with the switches after controlling for auditor industry specialisation. Evidence from this study is likely to fill a research void in market reaction studies to auditor switches in an Australian context and add to an emerging literature on individual auditor brand effects.

Publications:

Ferguson, A, Lam, H & Ma, N 2017, 'Market Reactions to Auditor Switches under a Regulatory Consent Regime: Evidence from Australia', 2017 UTS Australian Summer Accounting Conference, Sydney, Australia.

Keywords: market reaction, auditor switch, individual auditor brands

FOR Codes: Auditing and Accountability, Expanding Knowledge in Commerce, Management, Tourism and Services