Does Mandatory Audit Partner Rotation Influence Auditor Selection Strategies?

Under mandatory rotation, the switching cost may be most influential factor to considered for experienced audit rotations. This study attempts explore impacts of rotation mechanism on company information disclosure and signaling strategies by examining partner firm activities company. Are companies that experience more likely engage industry specialist auditors with better industry-specific knowledge reputations minimize costs rotations? Furthermore, in case being required rotate partners, do only rather than changing both partners firms at same time, costs? To these problems, this examined auditor rotations listed Taiwan from 2004 2016; expected that, costs, are select their successor auditors, less time. For rotations, we find compared voluntarily rotated companies, a higher percentage choose under rotation. empirical results support our expectations significantly specialists rotating around periods.