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

231 NTU Management Review Vol. 30 No. 2 Aug. 2020 respectively. These statistics show that governmental units in China control approximately two-thirds of the firms included in the pool of observations. There are also more observations during the post-2007 time period, from 2007 to 2014, and fewer during the pre-2007 time period, from 2002 to 2006. To analyze the effects of reasons for auditor-client realignment on audit fees and audit quality, we obtain data indicating the realignment reasons from the TEJ database. This data source classifies reasons for realignment into 14 categories, as pointed out in early discussions. For the purpose of our analyses, we reclassify these reasons into three categories. The client-related category includes location issues, corporate restructuring, controlling shareholders’ requirements, long tenure, and corporate strategy as the reasons for auditor-client realignments. The CPA-related category includes changing auditor(s) after the accounting firm merged with another firm, personnel assignment issues with the predecessor auditor, resignation of the predecessor auditor, sanctions on the predecessor auditor, and other reasons related to the predecessor auditor for auditor-client realignments. We also put those firms listing fulfilling governmental requirement(s) as the reasons for their auditor switches into the government-related category. Additionally, some firms in the database listed “other reasons” as their rationale for auditor-client realignments. Since the exact reasons behind their switches are unknown, we remove these observations from our analyses. Table 2 Descriptive Statistics Variable N Mean STD Q1 Median Q3 REASON_DISCLOSURE 1,340 0.476 0.500 0.000 0.000 1.000 LNAF 1,340 13.222 0.663 12.766 13.122 13.528 MAO 1,340 0.106 0.308 0.000 0.000 0.000 REASON_CLIENT 1,340 0.213 0.410 0.000 0.000 0.000 REASON_CPA 1,340 0.200 0.400 0.000 0.000 0.000 REASON_GOV 1,340 0.095 0.293 0.000 0.000 0.000 STATE 1,340 0.641 0.480 0.000 1.000 1.000 POST_2007 1,340 0.721 0.449 0.000 1.000 1.000 LNTA 1,340 21.554 1.249 20.709 21.424 22.278 D_LNTA 1,340 0.202 0.532 -0.011 0.086 0.227 CFOTA 1,340 0.037 0.081 -0.004 0.039 0.080 NEWFINANCING 1,340 0.239 0.205 0.057 0.212 0.366 TIE 1,340 2.637 44.237 -1.857 1.912 6.094 DA 1,340 0.522 0.269 0.336 0.510 0.668