recent legislation empowering the audit committee to make the auditor selection decision. The RFP resulted in a change in … engagement were directed toward management, and the audit committee delegated the auditor appointment decision to management … engagement. The Request-for-Proposal (RFP) process we observed had been triggered by an audit partner rotation and governed by …

), we examine whether and how banking deregulation affects firms’ auditor choices. We find that an exogenous increase in the … auditors. In cross-sectional analyses, we further find that the negative effect of banking deregulation on firms’ auditor … evidence is consistent with banking deregulation exerting its effect on firms’ auditor choices through two underlying channels …