The authors thank Bill Baber, Shuping Chen, Matthew Cobabe (discussant), Mindy Kim (discussant), Steven Kachelmeier, Susan Krische, Gopal Krishnan, Phil Lamoreaux (discussant), Clive Lennox, Lihong Liang, Christophe Van Linden (discussant), Mark Ma, Karen Nelson, Yinqi Zhang, and workshop participants at the American University, Bocconi University, Chinese University of Hong Kong, Hong Kong Polytechnic University, the Telfer Conference in Accounting and Finance at the University of Ottawa, The University of Hong Kong, University of Illinois-UC Accounting Symposium, University of California at Riverside, University of North Carolina-Chapel Hill, University of Texas at Dallas, American Accounting Association 2016 Annual Meeting, American Accounting Association 2017 Auditing Section Midyear Meeting, and 2019 Lone Star Accounting Research Conference for helpful comments and Yu Bai, Sai Harsa Katuri, Lijun Ruan, and Eduardo Tinoco for excellent research assistance. An earlier version of the paper was titled “Do Firms Successfully Shop for Compliant Auditors? Evidence from Opportunistic Changes in Accounting Estimates.”
