IDEAS home Printed from https://ideas.repec.org/a/taf/raaexx/v28y2021i1p71-93.html
   My bibliography  Save this article

Korean evidence on auditor switching for opinion shopping and capital market perceptions of audit quality

Author

Listed:
  • Heesun Chung
  • Yewon Kim
  • Hee-Yeon Sunwoo

Abstract

This study examines whether auditor switching for opinion shopping (OS) influences investors’ perceptions of audit quality (proxied by earnings response coefficients; ERCs). To the extent that audit quality deteriorates after firms switch auditors for OS, investors are less likely to rely on these firms’ audited earnings. This may result in a negative association between auditor switching for OS and ERCs. However, when the intention for auditor switching is undetected by investors, ERCs would do not differ depending on whether firms switch auditors for OS or not. We find that firms switching auditors for OS have lower ERCs than non-switching firms or those that switch for other reasons, suggesting that investors perceive auditor switching for OS as evidence of impaired auditor independence.

Suggested Citation

  • Heesun Chung & Yewon Kim & Hee-Yeon Sunwoo, 2021. "Korean evidence on auditor switching for opinion shopping and capital market perceptions of audit quality," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 28(1), pages 71-93, January.
    • Handle: RePEc:taf:raaexx:v:28:y:2021:i:1:p:71-93
    DOI: 10.1080/16081625.2020.1845000
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/16081625.2020.1845000
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/16081625.2020.1845000?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zvi Singer & Jing Zhang, 2022. "Do companies try to conceal financial misstatements through auditor shopping?," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 49(1-2), pages 140-180, January.
    2. Mihai Carp & Costel Istrate, 2021. "Audit Quality under Influences of Audit Firm and Auditee Characteristics: Evidence from the Romanian Regulated Market," Sustainability, MDPI, vol. 13(12), pages 1-16, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:raaexx:v:28:y:2021:i:1:p:71-93. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/raae20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.