Investigation of the Association between Z’Altmans Bankruptcy Index and Auditor Change

Subject Areas : Management Accounting

دکتر بهمن بنی مهد ¹ (ندارد)
رضا اکبری ² (ندارد)

Received: 2010-07-11 Accepted : 2010-09-28 Published : 2010-09-23

Keywords: Auditor Change, change of ownership, Z’Altmans,

Abstract :

In this paper, we examine relation between Z’Altmans Bankruptcy Index andAuditor Change over a 7- period in 56 firms in Tehran Stock Exchange. We reportevidence that auditor change and Z’Altmans Bankruptcy Index and it’s variableshave not a positive relation. There is also no relation between auditor change andfirm size in study sample. But we found a positive relation between auditor changeand firms leverage, qualified audit opinions and ownership change. Our findingscontribute to the literature on Determinants of Auditor Change and they implicate thatthe auditor change factors are likely non- quantitative Factors such as change ofownership.