The Role of Firm Ownership Type and Earnings Management on Auditor Choice and Audit Fee of Non-Financial Firms
- DOI
- 10.2991/sores-18.2019.130How to use a DOI?
- Keywords
- firm ownership type; earnings management; auditor choice; audit fee of non-financial firms; Indonesian stock exchange
- Abstract
In the past decade, there were cases questioning firm’s auditor choice like Enron, Tyco International, and WorldCom. Auditor choice (big 4 vs non-big 4) is a proxy of audit quality which audit fee capable to be proxy too. The research purpose is to analyze the impact of firm ownership type and earnings management to auditor choice and audit fee of non-financial firms listed on the Indonesia Stock Exchange (IDX). This research employed quantitative approach using binary logistic regression for auditor choice and multiple linier regression, Ordinary Least Square method for audit fee. The research sample is 609 firms for auditor choice and 566 firms for audit fee. Our findings show that firm ownership and earnings do not have significant relationship with auditor choice but have significant relationship with audit fee. State owned firm is more likely to pay lower audit fee and firm with higher earnings management will pay higher audit fee. This study examines implications which are firm ownership type only divided to 2 categories (state owned firm and non-state-owned firm), time period of this research is limited for only 3 years (2015 – 2017), and limited control variables to explain the relationship between variables.
- Copyright
- © 2019, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Senny Harindahyani AU - Jessica Avelina Yolino PY - 2019/03 DA - 2019/03 TI - The Role of Firm Ownership Type and Earnings Management on Auditor Choice and Audit Fee of Non-Financial Firms BT - Proceedings of the Social and Humaniora Research Symposium (SoRes 2018) PB - Atlantis Press SP - 563 EP - 569 SN - 2352-5398 UR - https://doi.org/10.2991/sores-18.2019.130 DO - 10.2991/sores-18.2019.130 ID - Harindahyani2019/03 ER -