Accounting and Auditing Research

Accounting and Auditing Research

Investigating the Relationship between Management Efficiency and Auditor Change with Emphasis on the Role of Information Asymmetry

Document Type : Original Article

Authors
Akbar Kanani
Rezvan Hejazi
Mehrdad Ghanbari
Babak Jamshidi Navid
Department of Accounting, Marand Branch, Islamic Azad University, Marand, Iran.
10.22034/iaar.2019.96968
Abstract
The purpose of the present study is to investigate the relationship between management efficiency(Ability)and auditor change with emphasis on the role of information asymmetry. For this purpose, 84 companies were surveyed for the period from 2009 to 2013 by statistical population screening method for 420 observations (year-company). Demerjian et al. (2012) model was used to measure management efficiency and Chiang and Venkatesh (1986) model was used to measure information asymmetry. The results of hypothesis testing using multivariate logistic regression showed that there was no significant relationship between management efficiency and auditor change. But the information asymmetry moderator variable significantly moderated the relationship between management performance and auditor change. The results showed that among the control variables, there was a significant relationship between the type of auditor's opinion and the  firm size with the change of audit.
Keywords
Management Efficiency
Auditor Change
Information Asymmetry
Accounting and Auditing Research
Volume 11, Issue 43 - Serial Number 43
Accounting and Auditing Research, Fall 1398, No. 43
Autumn 2019
Pages 23-40