Abstract

This study aims to determine the effect of financial distress, management change, audit opinion, institutional ownership, and company size both partially and jointly on the change of auditors. This study uses a sample of manufacturing companies listed on the Indonesia Stock Exchange during 2011-2018. The number of companies sampled was 160 companies with a total of 883 observations. The results showed partially, only management change variables and audit opinion have a significant effect on auditor switching, while financial distress, institutional ownership, and company size variables do not show a significant effect on auditor switching. The findings in this study contribute to the issue of auditor switching that is influenced by financial distress, management change, audit opinion, institutional ownership, and company size which are still being debated, especially for cases in capital markets in developing countries.

Keywords

Audit opinion, auditor switching, company size, financial distress, institutional ownership, management change