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

249 NTU Management Review Vol. 30 No. 2 Aug. 2020 Variable Coefficient p -value ISSUEB 0.100 0.599 ISSUEH 0.089 0.768 EXCHANGE CONTROLLED INDUSTRY CONTROLLED Pseudo R 2 0.3647 p -value <0.001 N 1,323 Note: The variable labelled with “ D_ ” reflects that annual report data are calculated between years. D_MAO is 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, and coded 1 if a firm receives a standard unmodified opinion from the predecessor auditor, but a modified opinion from the successor auditor. 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. QUICK is the sum of cash, short-term investments, and account receivables divided by current liabilities (quick ratio). 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. DA is the amount of total liabilities divided by the amount of total assets. TURNOVER is the amount of sales revenue 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). LOSS is coded 1 if a firm reports a net loss and 0 otherwise. ADJRETURN is the firm’s market-adjusted annual return. BETA is the firm’s systematic risk. STDRET is the standard deviation of residuals from the market model, estimated by daily returns during the year. EM is coded 1 if a firm reports ROA between 0 and 1% (small profits), ROA lower than the median value of other loss-making firms’ ROA (downward earnings management), or ROE between 6-7% (CSRC’s rights offering requirement), as in Chen et al. (2010). 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. SIZEFIRM is the sum of the audit firm’s clients’ logged assets. SIZECPA is the sum of the audit partners’ clients’ logged assets. LMAO is coded 1 if a firm receives a modified audit opinion in the prior year 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. STATE is coded 1 if the