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

227 NTU Management Review Vol. 30 No. 2 Aug. 2020 ISSUEH , and EXCHANGE. The definitions of these control variables (and others shown in the following equations) are in Appendix. Appendix: Variable De fi nitions Variable Definition DEPENDENT VARIABLES REASON_DISCLOSURE = Coded 1 if a firm discloses the reason for its auditor change and 0 otherwise. LNAF = Natural logarithm of audit fees. MAO = Coded 1 if a firm receives a modified audit opinion and 0 otherwise. D_MAO = Coded -1 if a firm receives a modified opinion from the predecessor auditor, but a standard unmodified opinion from the successor auditor. Coded 0 if a firm receives a standard unmodified or modified opinion from both predecessor and successor auditors. Coded 1 if a firm receives a standard unmodified opinion from the predecessor auditor, but a modified opinion from the successor auditor. INDEPENDENT VARIABLES REASON_CLIENT = Coded 1 if the auditor change is driven by the client and 0 otherwise. REASON_CPA = Coded 1 if the auditor change is driven by the accounting firm and 0 otherwise. REASON_GOV = Coded 1 if the auditor change is driven by the government and 0 otherwise. STATE = Coded 1 if the observation is obtained from a state-owned enterprise and 0 otherwise. POST_2007 = Coded 1 if the observation is obtained on or after 2007 and 0 otherwise. CONTROL VARIABLES LNTA = The natural logarithm of total assets. CFOTA = The amount of cash flow from operations divided by the amount of total assets. NEWFINANCING = The sum of new debt and equity divided by the amount of total assets. TIE = The amount of operating income divided by the amount of interest expenses (times interest earned). DA = The amount of total liabilities divided by the amount of total assets. RECTA = The amount of account receivables divided by the amount of total assets.