会议论文摘要：
From 2000 to 2007, fifteen audit firms in China were forced to stop their audit practices for different reasons. Clients of these audit firms had to select new audit firms in a short time. In this study, we examine the impact of these clients’ characteristic and their prior audit firms’ attributes on the choice of new audit firms and following decisions.We focus on four specialties of the stock market and audit market in China: (1) state-owned enterprises, (2) dual shares,(3) audit firm locality, and (4) suspension reasons. The empirical results indicate that central state-owned and dual shares clients tend to choose Big 4 or Big 10 as their succeeding audit firms. However, clients whose previous audit firms closed up because of severe regulatory sanctions are less likely to select high quality of auditors. Finally, this paper finds that clients whose preceding audit firms are located in the same province as theirs are more likely to follow their preceding audit partners.
