Political Connections, Directors' Status and Auditor Choice: Evidence from China

摘要

this paper investigates the different effects of some kinds of political connections on the auditor choice. Using data on Chinese listed firms from 2007 to 2010, it is found that the listed firms with politically connected directors, executive directors, chairmen of the board prefer to choose the "non-top 10" accounting firms, and the same situation can be find in the politically connected executive directors belong to party and government organizations.It is showed that listed firms with politically connected independent directors and chief executive officer do not have significant effects on the auditor choice, so do executive directors who do not have party and government organizations' political connections.