Auditor switching under COVID-19 pandemic: evidence from China

Purpose This study aims to examine whether and how the COVID-19 pandemic altered firms’ auditor switching behavior. Design/methodology/approach Drawing on crisis management theory, the authors analyze a panel data set of Chinese A-share listed manufacturing firms from 2016 to 2023 using a propensity score matching–difference-in-differences (PSM–DiD) approach. Findings Pandemic exposure significantly increased auditor switching likelihood. This effect was attenuated by slack resources but amplified when the incumbent auditor was a large audit firm, suggesting that crisis-induced switching reflects strategic adaptation shaped by internal resource endowments and external relational constraints. Practical implications Managers may leverage auditor switching as a crisis adaptation strategy, though such decisions carry audit quality risks. Regulators should monitor elevated switching rates during crises as potential indicators of governance stress. Originality/value This paper contributes to the literature by empirically investigating auditor switching as a strategic crisis response. By integrating crisis management theory with established auditor switching perspectives, it complements the “auditor-side” COVID-19 literature with a “client-side” perspective and identifies boundary conditions governing firms’ crisis responses.