The Effect of KAP Size, Management Change, Audit Opinion, and Financial Distress on Auditor Switching in Infrastructure, Utility and Transportation Companies

Firda Farhany Dimyati; Wahyu Ari Andrianto; Retna Sari

doi:doi:10.11648/j.jfa.20200806.12

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The Effect of KAP Size, Management Change, Audit Opinion, and Financial Distress on Auditor Switching in Infrastructure, Utility and Transportation Companies

Firda Farhany Dimyati, Wahyu Ari Andrianto, Retna Sari

Published in Journal of Finance and Accounting (Volume 8, Issue 6)

Received: 24 September 2020 Accepted: 9 November 2020 Published: 19 November 2020

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Abstract

This study aims to examine the effect of the size of the public accounting firm, change in management, audit opinion, and financial distress on auditor switching at companies listed on the Indonesia Stock Exchange (IDX) selected by using the purposive sampling method. Secondary data used in this study were taken from published annual reports through documentation and literature study methods. Infrastructure, utility, and transportation sector companies are the population in this study. The total number of infrastructure, utility, and transportation sector companies listed on the Indonesia Stock Exchange (IDX) in 2016-2018 in 181 companies. However, the data sample used is as many as 39 companies with an observation time of three years (2016-2017) with a population of 117 companies according to the criteria in this study. Logistic regression analysis is an analytical technique used for this study assisted by Microsoft Excel 2013 and IMB SPSS Statistic 25. The results of the study indicate that the size of the public accounting firm, audit opinion, and financial distress did not have a significant effect on auditor switching. Meanwhile, management changes have a significant effect on auditor switching.

Published in	Journal of Finance and Accounting (Volume 8, Issue 6)
DOI	10.11648/j.jfa.20200806.12
Page(s)	257-265
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Auditor Switching, Financial Distress, Audit Opinion, Management Change, and Public Accounting Firm Size

References

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[14]	Permatasari, R., & Hotman, T. (2016). “Analisis Faktor-Faktor yang Berpengaruh Terhadap Auditor switching”. Jurnal Informasi, Perpajakan, Akuntansi dan Keuangan Publik vol. 11 No. 1.
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APA Style

Firda Farhany Dimyati, Wahyu Ari Andrianto, Retna Sari. (2020). The Effect of KAP Size, Management Change, Audit Opinion, and Financial Distress on Auditor Switching in Infrastructure, Utility and Transportation Companies. Journal of Finance and Accounting, 8(6), 257-265. https://doi.org/10.11648/j.jfa.20200806.12

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ACS Style

Firda Farhany Dimyati; Wahyu Ari Andrianto; Retna Sari. The Effect of KAP Size, Management Change, Audit Opinion, and Financial Distress on Auditor Switching in Infrastructure, Utility and Transportation Companies. J. Finance Account. 2020, 8(6), 257-265. doi: 10.11648/j.jfa.20200806.12

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AMA Style

Firda Farhany Dimyati, Wahyu Ari Andrianto, Retna Sari. The Effect of KAP Size, Management Change, Audit Opinion, and Financial Distress on Auditor Switching in Infrastructure, Utility and Transportation Companies. J Finance Account. 2020;8(6):257-265. doi: 10.11648/j.jfa.20200806.12

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@article{10.11648/j.jfa.20200806.12,
  author = {Firda Farhany Dimyati and Wahyu Ari Andrianto and Retna Sari},
  title = {The Effect of KAP Size, Management Change, Audit Opinion, and Financial Distress on Auditor Switching in Infrastructure, Utility and Transportation Companies},
  journal = {Journal of Finance and Accounting},
  volume = {8},
  number = {6},
  pages = {257-265},
  doi = {10.11648/j.jfa.20200806.12},
  url = {https://doi.org/10.11648/j.jfa.20200806.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20200806.12},
  abstract = {This study aims to examine the effect of the size of the public accounting firm, change in management, audit opinion, and financial distress on auditor switching at companies listed on the Indonesia Stock Exchange (IDX) selected by using the purposive sampling method. Secondary data used in this study were taken from published annual reports through documentation and literature study methods. Infrastructure, utility, and transportation sector companies are the population in this study. The total number of infrastructure, utility, and transportation sector companies listed on the Indonesia Stock Exchange (IDX) in 2016-2018 in 181 companies. However, the data sample used is as many as 39 companies with an observation time of three years (2016-2017) with a population of 117 companies according to the criteria in this study. Logistic regression analysis is an analytical technique used for this study assisted by Microsoft Excel 2013 and IMB SPSS Statistic 25. The results of the study indicate that the size of the public accounting firm, audit opinion, and financial distress did not have a significant effect on auditor switching. Meanwhile, management changes have a significant effect on auditor switching.},
 year = {2020}
}

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TY  - JOUR
T1  - The Effect of KAP Size, Management Change, Audit Opinion, and Financial Distress on Auditor Switching in Infrastructure, Utility and Transportation Companies
AU  - Firda Farhany Dimyati
AU  - Wahyu Ari Andrianto
AU  - Retna Sari
Y1  - 2020/11/19
PY  - 2020
N1  - https://doi.org/10.11648/j.jfa.20200806.12
DO  - 10.11648/j.jfa.20200806.12
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 257
EP  - 265
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20200806.12
AB  - This study aims to examine the effect of the size of the public accounting firm, change in management, audit opinion, and financial distress on auditor switching at companies listed on the Indonesia Stock Exchange (IDX) selected by using the purposive sampling method. Secondary data used in this study were taken from published annual reports through documentation and literature study methods. Infrastructure, utility, and transportation sector companies are the population in this study. The total number of infrastructure, utility, and transportation sector companies listed on the Indonesia Stock Exchange (IDX) in 2016-2018 in 181 companies. However, the data sample used is as many as 39 companies with an observation time of three years (2016-2017) with a population of 117 companies according to the criteria in this study. Logistic regression analysis is an analytical technique used for this study assisted by Microsoft Excel 2013 and IMB SPSS Statistic 25. The results of the study indicate that the size of the public accounting firm, audit opinion, and financial distress did not have a significant effect on auditor switching. Meanwhile, management changes have a significant effect on auditor switching.
VL  - 8
IS  - 6
ER  -

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Author Information

Firda Farhany Dimyati

Fakultas Ekonomi dan Bisnis, University of Pembangunan Nasional Veteran Jakarta, Jakarta, Indonesia
Wahyu Ari Andrianto

Fakultas Ekonomi dan Bisnis, University of Pembangunan Nasional Veteran Jakarta, Jakarta, Indonesia
Retna Sari

Fakultas Ekonomi dan Bisnis, University of Pembangunan Nasional Veteran Jakarta, Jakarta, Indonesia

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APA Style

Firda Farhany Dimyati, Wahyu Ari Andrianto, Retna Sari. (2020). The Effect of KAP Size, Management Change, Audit Opinion, and Financial Distress on Auditor Switching in Infrastructure, Utility and Transportation Companies. Journal of Finance and Accounting, 8(6), 257-265. https://doi.org/10.11648/j.jfa.20200806.12

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ACS Style

Firda Farhany Dimyati; Wahyu Ari Andrianto; Retna Sari. The Effect of KAP Size, Management Change, Audit Opinion, and Financial Distress on Auditor Switching in Infrastructure, Utility and Transportation Companies. J. Finance Account. 2020, 8(6), 257-265. doi: 10.11648/j.jfa.20200806.12

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AMA Style

Firda Farhany Dimyati, Wahyu Ari Andrianto, Retna Sari. The Effect of KAP Size, Management Change, Audit Opinion, and Financial Distress on Auditor Switching in Infrastructure, Utility and Transportation Companies. J Finance Account. 2020;8(6):257-265. doi: 10.11648/j.jfa.20200806.12

Copy | Download

@article{10.11648/j.jfa.20200806.12,
  author = {Firda Farhany Dimyati and Wahyu Ari Andrianto and Retna Sari},
  title = {The Effect of KAP Size, Management Change, Audit Opinion, and Financial Distress on Auditor Switching in Infrastructure, Utility and Transportation Companies},
  journal = {Journal of Finance and Accounting},
  volume = {8},
  number = {6},
  pages = {257-265},
  doi = {10.11648/j.jfa.20200806.12},
  url = {https://doi.org/10.11648/j.jfa.20200806.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20200806.12},
  abstract = {This study aims to examine the effect of the size of the public accounting firm, change in management, audit opinion, and financial distress on auditor switching at companies listed on the Indonesia Stock Exchange (IDX) selected by using the purposive sampling method. Secondary data used in this study were taken from published annual reports through documentation and literature study methods. Infrastructure, utility, and transportation sector companies are the population in this study. The total number of infrastructure, utility, and transportation sector companies listed on the Indonesia Stock Exchange (IDX) in 2016-2018 in 181 companies. However, the data sample used is as many as 39 companies with an observation time of three years (2016-2017) with a population of 117 companies according to the criteria in this study. Logistic regression analysis is an analytical technique used for this study assisted by Microsoft Excel 2013 and IMB SPSS Statistic 25. The results of the study indicate that the size of the public accounting firm, audit opinion, and financial distress did not have a significant effect on auditor switching. Meanwhile, management changes have a significant effect on auditor switching.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - The Effect of KAP Size, Management Change, Audit Opinion, and Financial Distress on Auditor Switching in Infrastructure, Utility and Transportation Companies
AU  - Firda Farhany Dimyati
AU  - Wahyu Ari Andrianto
AU  - Retna Sari
Y1  - 2020/11/19
PY  - 2020
N1  - https://doi.org/10.11648/j.jfa.20200806.12
DO  - 10.11648/j.jfa.20200806.12
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 257
EP  - 265
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20200806.12
AB  - This study aims to examine the effect of the size of the public accounting firm, change in management, audit opinion, and financial distress on auditor switching at companies listed on the Indonesia Stock Exchange (IDX) selected by using the purposive sampling method. Secondary data used in this study were taken from published annual reports through documentation and literature study methods. Infrastructure, utility, and transportation sector companies are the population in this study. The total number of infrastructure, utility, and transportation sector companies listed on the Indonesia Stock Exchange (IDX) in 2016-2018 in 181 companies. However, the data sample used is as many as 39 companies with an observation time of three years (2016-2017) with a population of 117 companies according to the criteria in this study. Logistic regression analysis is an analytical technique used for this study assisted by Microsoft Excel 2013 and IMB SPSS Statistic 25. The results of the study indicate that the size of the public accounting firm, audit opinion, and financial distress did not have a significant effect on auditor switching. Meanwhile, management changes have a significant effect on auditor switching.
VL  - 8
IS  - 6
ER  -

Copy | Download