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

239 NTU Management Review Vol. 30 No. 2 Aug. 2020 Variable Coefficient p -value LOCAL -0.632 <0.001 MAO 0.061 0.225 STATE -0.120 <0.001 CMI -0.009 0.261 GDI 0.019 0.188 LEI 0.031 0.003 ISSUEB 0.281 <0.001 ISSUEH 0.476 <0.001 EXCHANGE CONTROLLED INDUSTRY CONTROLLED Adjusted R 2 0.5218 p -value <0.001 N 1,340 Note: LNAF is natural logarithm of audit fees. REASON_CLIENT is coded 1 if the auditor change is driven by the client and 0 otherwise. REASON_CPA is coded 1 if the auditor change is driven by the accounting firm and 0 otherwise. REASON_GOV is coded 1 if the auditor change is driven by the government and 0 otherwise. POST_2007 is coded 1 if the observation is obtained on or after 2007 and 0 otherwise. LNTA is the natural logarithm of total assets. RECTA is the amount of account receivables divided by the amount of total assets. INVTA is the amount of ending inventories divided by the amount of total assets. LIQ is the amount of current assets divided by the amount of current liabilities (current ratio). DA is the amount of total liabilities divided by the amount of total assets. ROA is the amount of net income divided by the amount of beginning total assets (return on assets). ADJRETURN is the firm’s market- adjusted annual return. STDRET is the standard deviation of residuals from the market model, estimated by daily returns during the year. CIFIRM is the firm’s logged assets divided by the sum of the audit firm’s clients’ logged assets (client importance). CICPA is the firm’s logged assets divided by the sum of the audit partners’ clients’ logged assets (client importance). EXPFIRM is coded 1 if the audit firm has more than 10% market share measured by total audit fees and 0 otherwise. EXPCPA is coded 1 if any of two audit partners has more than 10% market share of total audit fees in the industry and 0 otherwise. LEGALFORMLLP is coded 1 if the audit firm is formed as a limited liability partnership and 0 otherwise. LEGALFORMLLC is coded 1 if the audit firm is formed as a limited liability corporation and 0 otherwise. TOP10 is coded 1 if the auditor is one of China’s local Top 10 audit firms, measured by the market share of total audit fees and 0 otherwise. LOCAL is coded 1 if a firm engages an audit firm that is neither an international Big-4 nor a local Top 10 audit firm and 0 otherwise. MAO is coded 1 if a firm receives a modified audit opinion and 0 otherwise. STATE is coded 1 if the observation is obtained from a state-owned enterprise and 0 otherwise. CMI is the credit market index, derived by Wang et al. (2008). GDI is the government decentralization index, derived by Wang et al. (2008). LEI is legal environment index, derived by Wang et al. (2008). ISSUEB is coded 1 if the client issues B shares and 0 otherwise. ISSUEH is coded 1 if the client issues H shares and 0 otherwise. EXCHANGE is coded 1 if the firm is listed in the Shanghai Stock Exchange and 0 otherwise.