TY - JOUR
AU - Cooke, T.E.
AB - 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.
TI - The Impact of Managing Director Changes and Financial Distress on Audit Qualification and Auditor Switching
JF - Journal of Business Finance & Accounting
DO - 10.1111/j.0306-686X.2005.00645.x
DA - 2005-11-01
UR - https://www.deepdyve.com/lp/wiley/the-impact-of-managing-director-changes-and-financial-distress-on-L2pJTtupeG
SP - 1703
VL - 32
IS - 9‐10
DP - DeepDyve
ER -