신규상장기업의 상장연도 감사인변경과 감사품질

Abstract

This study analyzed the effect of newly listed firms' auditor change of the listed year on audit quality of both listed year and listed just before the year. We analyzed the differences of the audit quality of the listed year between the auditor-changed firms and the auditor-unchanged firms of the listed year. We also analyzed the differences of the audit quality of the listed just before the year between the auditor-changed firms which chose the auditor immediately preceding the designated auditor and auditor-unchanged firms of the listed year. We uses discretionary accruals to proxy for audit quality based on previous research. Discretionary accruals are estimated using the modified Jones model developed by Dechow et al.(1995) and the performance-matched modified Jones model developed by Kothari et al.(2005). This study uses the financial statements of the 339 newly listed firms of non-financial corporate sector from 2006, when the changed auditor designation system was implemented, to 2012 when the financial data is available. The major findings of this study are summarized as follows. First, the differences between the audit quality of listed year of auditor-changed firms and that of auditor-unchanged firms show statistically non-significant results. Those results do not match the previous study(Park and Kwak, 2007) which report the voluntarily auditor-changed firms tend to hire less conservative auditor to perform a more aggressive accounting. Furthermore, the review of the application of the regulation to the local newly listed companies, which restricts the change of a designated auditor for a period of time just after listing as domestic listed foreign companies, can not find the empirical validity of the results. Second, when we compared the audit quality of the listed just before the year of the auditor-unchanged firms with that of the auditor-changed firms which chose the auditor immediately preceding the designated auditor, we found that the audit quality of the auditor-changed firms was higher than that of the auditor-unchanged firms. On the other hand, the differences of the audit quality of listed year between the auditor-unchanged firms and the auditor-changed firms which chose the auditor immediately preceding the designated auditor were not singnificant. These results demonstrate the possibility that the restriction of the opportunistic earnings management of the listed just before the year could be the reason for the auditor change of listed year. However, The non-significant differences of audit quality of listed year shows the possibility that the auditor immediately preceding auditor did not provide the same level of external audits when the company was a privately-held company, but provided the more strengthened level of external audits as those of the designated auditor who continued the audit of the auditor-unchanged firms of listed year. Further analysis of the direction of the auditor change shows the results that the statistically significant differences of audit quality of listed year between the auditor-changed firms which chose non-big4 in the listed year and the auditor-unchanged firms were not found. These results confirmed the robustness of the empirical results which reported the non-significant differences of audit quality of listed year between the auditor-changed firms and the auditor-unchanged firms. This paper contributed to analyzing the effect of auditor designation system which implemented from 2006 on auditor change of listed year. This study differentiated the previous study because we analyzed audit quality of the voluntarily auditor-changed firms and the auditor-unchanged firms in both listed year and listed just before the year, which is the first empirical study as far as we know. The limitation of this study can be the possibility of the relatively small sample size due to both the financial data availableness and small number of newly listed firms themselves in KSE or KOSDAQ after 2006. Finally the results of this study can be utilized as a reference by policy-making and supervisory authorities for improving the efficiency and effectiveness of the auditor designation system of newly listed firms.