臺大管理論叢 NTU Management Review VOL.30 NO.2

225 NTU Management Review Vol. 30 No. 2 Aug. 2020 Panel C: Samples Distribution by Year Year Number of Observations % 2002 65 4.85 2003 60 4.48 2004 79 5.90 2005 85 6.34 2006 85 6.34 2007 84 6.27 2008 95 7.09 2009 96 7.16 2010 75 5.60 2011 120 8.96 2012 213 15.9 2013 163 12.16 2014 120 8.96 Total number of observations 1,340 100.00 Notes: We attempt to understand the reasons behind the significant increase in auditor-client realignments in 2012. According to public press, there were 12 accounting firms sanctioned by Chinese regulators. It is possible that these sanctions help to explain the increase in the number of auditor switches observed in 2012. Panel D: Sample Distribution Based on Directional Changes of Auditors by State Ownership SOEs NSOEs Pre-2007 Post-2007 Total Pre-2007 Post-2007 Total Big-4 to Top 10 16 22 38 4 8 12 Local to Top 10 54 157 211 11 113 124 Total 70 179 249 15 121 136 Panel E: Sample Distribution Based on Whether or Not to Disclose the Reasons for Realignment Disclose/Not to Disclose Number of Observations % Disclosed 638 47.61 Decision Not to Disclose 702 52.39 Total number of observations 1,340 100.00 Panel F: Sample Distribution Based on Reasons behind Auditor-Client Realignment Decisions Reason Pre-2007 Post-2007 Full Sample % Client-Related 41 245 286 42.00 CPA Firm-Related 43 225 268 39.35 Government-Related 31 96 127 18.65 Total number of observations 115 566 681 100.00 Note: The 681 observations presented in this panel are greater than the 638 observations in Panel E because some firms disclose multiple reasons for the realignments.