IDEAS home Printed from
   My bibliography  Save this paper

An empirical analysis of factors related to auditor switching after corporate takeovers


  • Luypaert, Mathieu

    () (Vlerick Leuven Gent Management School en KU Leuven)

  • Van Caneghem, Tom

    () (Hogeschool-Universiteit Brussel (HUB))


In case of a takeover, the acquiring firm has to choose whether to retain the acquired firm’s incumbent auditor or to switch to its own auditor. In the current paper, we explore the drivers of auditor switching by the acquired firm after a takeover among a sample of Belgian takeovers. Employing binary probit regression analysis, we relate different types of variables borrowed from the auditing literature (e.g., similarity of activities between the acquired and the acquiring firm, auditor size, type of audit opinion, agency variables) to the auditor change decision. Our results confirm prior evidence indicating that the majority of acquired firms switch to the auditor of the acquiring firm after the takeover. Whereas prior results are inconclusive, our results suggest that similarity of activities between the acquired and the acquiring firm does not affect the decision to replace the acquired firm’s auditor. However, our results indicate that the likelihood of an auditor switch is significantly higher when the acquiring firm is listed. Agency variables (at both the acquired and the acquiring firm level) are also found to affect the auditor change decision.

Suggested Citation

  • Luypaert, Mathieu & Van Caneghem, Tom, 2012. "An empirical analysis of factors related to auditor switching after corporate takeovers," Working Papers 2012/03, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
  • Handle: RePEc:hub:wpecon:201203

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    takeover; auditor switch; auditor choice; agency costs;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hub:wpecon:201203. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sabine Janssens). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.