Purpose – From 2000 to 2007, 14 Chinese accounting firms had their audit licenses terminated or suspended for different reasons, forcing clients of these accounting firms to select new auditors within a short period of time. The purpose of this paper is to examine the auditor switching...

Purpose – The purpose of this paper is to examine the association between investor perception management through reporting aggressive pro forma (PF) earnings and earnings management through real activities or by manipulating accruals. Design/methodology/approach – A sample of PF earnings...