Khadijeh Lashkari - Department of Accounting, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran
Hamidreza Vakili Fard - Department of Accounting, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran
Afshin Armin - Department of Accounting, Bandar Abbas Branch, Islamic Azad University, Bandar Abbas, Iran

Abstract: The aim of this study is to investigate the relationship between the mechanisms ofcorporate governance and the auditor selection in the initial offering of shares. In order to achievethe research objectives, three hypotheses have been developed which examine the significance ofthe relationship between corporate governance mechanisms and auditor selection by thecompanies. The research hypothesis are analyzed through the application of the statistic z andstatistic LR tests, as well as calculating the Spearman univariate correlation coefficient andbalanced panel in logistic regression, according to the statistics such as: Jack Berra, Mac Faddenand Schweiz, Henan Queen and AKaik. The sample of the research consisted of 108 firms during asix-year period from 2007 to 2012. As a general conclusion, there is no significant differencebetween the presence or absence of these factors and the auditor selection. The hypothesisconcerning the relationship between the ratio of the board non-required members and the auditorselection in the comparative test of two samples mean was adopted. Based on the results of thehypotheses and the comparison of them with previous researches, it seems that other factors areinvolved in the selection of auditors. To identify these factors, more research work is needed.Therefore, this issue can be addressed in future studies.

Initial Offering of Shares, the Auditor Selection, Ownership Structure, Corporate Governance