Download or read book The Board of Director's and Prior Audit Opinion's Influence on the Stock Market Reaction to Announced Auditor Changes written by Wallace N. Davidson and published by . This book was released on 2000 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies a sample of firms that changed their auditors and examines the potential agency cost issues that may arise. We find that on average the stock market interprets auditor changes as an agency cost because the changes seem to be management entrenching events. We also document that board of director composition influences the stock market's interpretation of the auditor change announcements and therefore that a board of directors can protect firms from management entrenchment behavior.