Purpose: This study examines the firm's characteristics and the corporate governance factors that influence the auditor change decisions, and observes the market reaction following the announcement of such decisions. Design/methodology/approach: The relation between the firm's characteristics and the corporate governance factors with the auditor change decision is addressed using a logistic regression. The market reaction to the auditor change announcement is tested using the event study methodology. Findings: The results show that the company's size is positively related to the auditor ...