AUDITOR RATIFICATION, STOCK PRICES, AND AUDITOR CHANGE: A COMPARATIVE STUDY IN PUBLICLY TRADED COMPANIES

Daniel Acheampong, Isaac Osei Agyemang, Tanya S. Benford and Judy Wynekoop

Accounting & Taxation, 2023, vol. 15, issue 2, 93-104

Abstract: This study investigates the complicated relationships among auditor ratification, stock prices, and auditor change within publicly traded companies. We analyzed 44,398 observations spanning 2010 to 2023. We find that factors influencing auditor ratification include total shares outstanding, net income, audit benefits fees, and Russell 2000 index membership. Factors that affect stock prices include the total number of votes cast by shareholders, book value, and audit fees. This study also reveals that ratification year and audit benefits fees are related to auditor change. This study adds to the shareholder impact on corporate governance and stock price discussion.

Keywords: Auditor change; Auditor Ratification; Audit-related outcomes; Investor Confidence; Ratification Year; Russell 2000 Index; Shareholder Perceptions; Shareholder Voting (search for similar items in EconPapers)
JEL-codes: M42 M48 M49 (search for similar items in EconPapers)
Date: 2023
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