• Medientyp: E-Artikel
  • Titel: The Impact of Managing Director Changes and Financial Distress on Audit Qualification and Auditor Switching
  • Beteiligte: Hudaib, Mohammad; Cooke, T.E.
  • Erschienen: Wiley, 2005
  • Erschienen in: Journal of Business Finance & Accounting, 32 (2005) 9-10, Seite 1703-1739
  • Sprache: Englisch
  • DOI: 10.1111/j.0306-686x.2005.00645.x
  • ISSN: 0306-686X; 1468-5957
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  • Beschreibung: Abstract:  This study examines the interactive effects of change in managing director/chief executive officer (MD) and financial distress together with five control variables (type of audit firm; audit fees; gearing; time; and company size) on first, audit opinion and secondly on auditor switching. Based on a sample of 297 UK listed companies between 1987 and 2001, we find that companies that are financially distressed and change their MD are most likely to receive a qualified audit report, ceteris paribus. In addition, we find evidence of both familiarity and intimidation threats and that the probability of a switch increases with the severity of qualification.