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This paper investigates the relation between corporate governance and auditor selection for firms listed in Taiwan. More specifically, we use the divergence between control rights and cash flow rights (i.e., the ratio of control rights to cash flow rights) to measure the extent of the corporate governance mechanism whereas we use three quality levels to define auditor type - Big 5 industry specialist (highest quality), nonspecialist Big 5 (middle quality), or non-Big 5 auditor (lowest quality). Using both multinomial logistic regression and binary logistic regression models, we find that the likelihood of selecting specialist auditors and Big 5 auditors increases with the ratio of control rights to cash flow rights after controlling for other variables, which suggests that firms with greater entrenchment effects are more likely to hire high quality auditors. Our study contributes to the literature of accounting and auditing by demonstrating the relation between corporate governance, measured as the deviation of control rights and cash flow rights, and selection of high quality auditors, which has not been explored in Taiwan where the interests of controlling and minority shareholders are not perfectly aligned.

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This study employs the Torrance Tests of Creative Thinking to investigate the effects of accounting and business curriculums on students' verbal and figurative creativity via the Solomon four-group design. The subjects are accounting and business administration students in Taiwan, where these two curriculums are similar to their counterparts in the U.S.A. The test scores were analyzed with MANOVA and meta-analysis. The results show that the accounting curriculum has not been as effective as the business administration curriculum with respect to both verbal and figurative creativity. These results indicate that in today's dynamic and competitive business environment, the accounting curriculum needs to be redesigned in a variety of aspects regarding creative thinking and problem solving to meet the challenge.