| Summary: | 碩士 === 輔仁大學 === 會計學系碩士班 === 97 === The U.S. Congress passed the Sarbanes-Oxley Act in 2002 in response to a series of corporate scandals. According to this Act, the regulatory authority is able to impose strict requirements on financial reporting of public companies, including mandate audit-partner rotations, in order to enhance the credibility of financial statements. In the prior corporate scandals, long tenure of auditors was often deemed as one source of damages to audit independence and due professional judgment. Similar contexts, such as Rebar and Procomp scandals, also happened in Taiwan in recent years, and hence the R.O.C. administration duplicated part of the Sarbanes-Oxley Act in the regulations with the intention to strengthen mechanisms of corporate governance and prevent subsequent accounting scandals. These phenomena motivated the author of this thesis to conduct an event study on exploring the effect of mandatory audit-partner rotation, effected in 2003, on perceived audit quality, proxied by cumulate abnormal return (CAR) and earnings response coefficient (ERC). In this study, five coherent research questions were proposed and examined by using a sample of 273 Taiwan’s listed companies for the period of 2003 to 2007. The author believes the empirical results will not only provide insights into auditor tenure issues but also contribute to the subsequent regulatory considerations.
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