The Effect of Financial Distress, Audit Opinion, Management Turnover, and Profitability on Auditor Switching
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Apr 30, 2024
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Abstract
This research aimed to provide empirical evidence regarding the effect of financial distress, audit opinion, management turnover, and profitability on auditor switching in the manufacturing sector companies listed on the Indonesian Stock Exchange (IDX). The research uses logistic regression analysis considering that the dependent variable is dichotomous. The data used in this study is secondary data obtained from the official website of the Indonesia Stock Exchange. Data on this study were collected using purposive sampling from 39 manufacturing companies with the observation period from 2018 to 2021. The result of the study shows that financial distress and audit opinion affect auditor switching, while management turnover and profitability do not affect auditor switching.
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References
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Bougie, R., & Sekaran, U. (2019). Research methods for business: A skill building approach. John Wiley & Sons.
Damayanti, S., & Sudarma, M. (2007). Faktor-Faktor yang Mempengaruhi Perusahaan Berpindah Kantor Akuntan Publik. Simposium Nasional Akuntansi, 11, 1–50.
Eisenhardt, K. M. (1989). Agency Theory: An Assessment and Review. The Academy of Management Review, 14(1), 57–74. https://doi.org/10.2307/258191
Fenadi, A. P. A. (2019). Pengaruh Going Concern, Audit Delay, Profitabilitas, dan Komite Audit Terhadap Auditor Switching. JASa (Jurnal Akuntansi, Audit Dan Sistem Informasi Akuntansi), 3(3), 298–306.
Ghozali, I. (2018). Aplikasi Analisis Multivariate dengan Program IBM SPSS 25 Semarang: Badan Penerbit Dipenogoro.
Herawaty, N., & Ovami, D. C. (2021). Faktor-Faktor Yang Mempengaruhi Auditor Switching Pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia. Indonesian Journal of Business Analytics (IJBA), 1(2), 227–236.
Hudaib, M., & Cooke, T. E. (2005). Qualified Audit Opinions And Auditor. University of Exeter.
Ilhamsyah, F., Ginting, R., & Setiawan, A. (2020). Pengaruh Pergantian Manajemen, Opini Audit, Ukuran Perusahaan, dan Profitabilitas Perusahaan terhadap Auditor Switching. Business Management, Economic, and Accounting National Seminar, 1, 1059–1076.
Jensen, M. C., & Meckling, W. H. (1976). Theory of The Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
Maidnani, & Afriani, R. I. (2019). Pengaruh Profitabilitas, Fee Audit, Debt Equity Ratio, dan Ukuran Perusahaan Terhadap Auditor Switching. Jurnal Ilmiah Akuntansi Dan Manajemen, 15(2), 70–76.
Manto, J. I., & Manda, D. L. (2018). Pengaruh Financial distress, Pergantian Manajemen dan Ukuran Kap terhadap Auditor switching. Media Riset Akuntansi, Auditing & Informasi, 18(2), 205–224. https://doi.org/10.25105/mraai.v18i2.3069
Nasser, A. T. A., Wahid, E. A., Nazri, S. N. F. S. M., & Hudaib, M. (2006). Auditor‐Client Relationship: The Case of Audit Tenure and Auditor Switching in Malaysia. Managerial Auditing Journal, 21(7), 724–737. https://doi.org/10.1108/02686900610680512
Pawitri, N. M. P., & Yadnyana, K. (2015). Pengaruh Audit Delay, Opini Audit, Reputasi Auditor dan Pergantian Manajemen Pada Voluntary Auditor switching. E-Jurnal Akuntansi Universitas Udayana, 10.1, 214–228.
Pebriani, R. A., Anggraini, L. D., Romli, H., & Syafitri, L. (2022). Faktor-Faktor yang Memengaruhi Auditor Switching Pada Perusahaan Manufacture Sektor Industri Dasar dan Kimia yang Terdaftar di Bursa Efek Indonesia Tahun 2017–2021. JURNAL ILMIAH EKONOMI GLOBAL MASA KIN, 1, 1–10.
Platt, H. D., & Platt, M. B. (2002). Predicting Corporate Financial Distress: Reflections on Choice-Based Sample Bias. JOURNAL OF ECONOMICS AND FINANCE, 26(2), 184–199.
Pratiwi, A., Nurkholis, N., & Ghofar, A. (2015). Pengaruh Corporate Governance dan Struktur Kepemilikan Terhadap Asimetri Informasi. Jurnal Akuntansi & Auditing Indonesia, 19(2), 99–111. https://doi.org/10.20885/jaai.vol19.iss2.art2
Putri, D. T., & Nursiam. (2021). Ukuran Kantor Akuntan Publik (KAP), Opini Auditor, Financial Distress, dan Pergantian Manajer pada Auditor Switching. Perspektif Akuntansi, 4(3), 227–296.
Rini, P. (2021). Analisis Pengaruh Pergantian Manajemen, Audit Delay dan Opini Auditor Terhadap Pergantian Auditor Pada Perusahaan Manufaktur di Bei. Jurnal Bisnis, Logistik Dan Supply Chain, 1(2), 97–109.
Sambo, E. M. (2022). Pengaruh Opini Audit, Financial Distress, Dan Pertumbuhan Perusahaan Klien Terhadap Auditor Switching Di Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia. Insan Cita Bongaya Research Journal, 1(3), 193–203.
Simanjuntak, O. D. P., & Budianto. (2020). Analisis Faktor-Faktor Yang Mempengaruhi Perusahaan Melakukan Auditor Switching Secara Voluntary (Studi Empiris Pada Perusahaan Manufaktur Di Bursa Efek Indonesia Tahun 2016-2018). Jurnal Teknologi, Kesehatan Dan Ilmu Sosial, 2(2), 30–48.
Sinaga, A. N., Mega, Felline, & Wijaya, O. R. (2021). Pengaruh Profitabilitas (ROE), Ukuran Perusahaan, Financial distress, dan Opini Audit Terhadap Auditor switching Pada Perusahaan Manufaktur di BEI Tahun 2017-2019. Journal of Economic, Business and Accounting, 5(1), 307–317.
Sriwardany, & Dewi, R. S. (2021). Analisis Financial Distress Audit Delay Dan Opini Audit Terhadap Voluntary Auditor Switching Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia. Jurnal Riset Akuntansi Dan Bisnis, 21(1), 87–95. https://doi.org/10.30596/jrab.v21i1.6521
Swandewi, N. L. M. A., & Badera, D. N. (2021). The Effect of Audit Opinion, Audit Delay and Return on Assets on Auditor Switching (Empirical Study on Mining Companies Listed on the IDX 2015-2019 Period). American Journal of Humanities and Social Sciences Research (AJHSSR), 5(1), 593–600.
Zarefar, A., Oktari, V., & Zarefar, A. (2019). The Effect of Financial Distress, Management Turnover, Audit Opinion and Reputation of Public Accounting Firm to Auditor Switching. Research Journal of Finance and Accounting, 10(22), 100–111. https://doi.org/10.7176/RJFA/10-22-11
Bougie, R., & Sekaran, U. (2019). Research methods for business: A skill building approach. John Wiley & Sons.
Damayanti, S., & Sudarma, M. (2007). Faktor-Faktor yang Mempengaruhi Perusahaan Berpindah Kantor Akuntan Publik. Simposium Nasional Akuntansi, 11, 1–50.
Eisenhardt, K. M. (1989). Agency Theory: An Assessment and Review. The Academy of Management Review, 14(1), 57–74. https://doi.org/10.2307/258191
Fenadi, A. P. A. (2019). Pengaruh Going Concern, Audit Delay, Profitabilitas, dan Komite Audit Terhadap Auditor Switching. JASa (Jurnal Akuntansi, Audit Dan Sistem Informasi Akuntansi), 3(3), 298–306.
Ghozali, I. (2018). Aplikasi Analisis Multivariate dengan Program IBM SPSS 25 Semarang: Badan Penerbit Dipenogoro.
Herawaty, N., & Ovami, D. C. (2021). Faktor-Faktor Yang Mempengaruhi Auditor Switching Pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia. Indonesian Journal of Business Analytics (IJBA), 1(2), 227–236.
Hudaib, M., & Cooke, T. E. (2005). Qualified Audit Opinions And Auditor. University of Exeter.
Ilhamsyah, F., Ginting, R., & Setiawan, A. (2020). Pengaruh Pergantian Manajemen, Opini Audit, Ukuran Perusahaan, dan Profitabilitas Perusahaan terhadap Auditor Switching. Business Management, Economic, and Accounting National Seminar, 1, 1059–1076.
Jensen, M. C., & Meckling, W. H. (1976). Theory of The Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
Maidnani, & Afriani, R. I. (2019). Pengaruh Profitabilitas, Fee Audit, Debt Equity Ratio, dan Ukuran Perusahaan Terhadap Auditor Switching. Jurnal Ilmiah Akuntansi Dan Manajemen, 15(2), 70–76.
Manto, J. I., & Manda, D. L. (2018). Pengaruh Financial distress, Pergantian Manajemen dan Ukuran Kap terhadap Auditor switching. Media Riset Akuntansi, Auditing & Informasi, 18(2), 205–224. https://doi.org/10.25105/mraai.v18i2.3069
Nasser, A. T. A., Wahid, E. A., Nazri, S. N. F. S. M., & Hudaib, M. (2006). Auditor‐Client Relationship: The Case of Audit Tenure and Auditor Switching in Malaysia. Managerial Auditing Journal, 21(7), 724–737. https://doi.org/10.1108/02686900610680512
Pawitri, N. M. P., & Yadnyana, K. (2015). Pengaruh Audit Delay, Opini Audit, Reputasi Auditor dan Pergantian Manajemen Pada Voluntary Auditor switching. E-Jurnal Akuntansi Universitas Udayana, 10.1, 214–228.
Pebriani, R. A., Anggraini, L. D., Romli, H., & Syafitri, L. (2022). Faktor-Faktor yang Memengaruhi Auditor Switching Pada Perusahaan Manufacture Sektor Industri Dasar dan Kimia yang Terdaftar di Bursa Efek Indonesia Tahun 2017–2021. JURNAL ILMIAH EKONOMI GLOBAL MASA KIN, 1, 1–10.
Platt, H. D., & Platt, M. B. (2002). Predicting Corporate Financial Distress: Reflections on Choice-Based Sample Bias. JOURNAL OF ECONOMICS AND FINANCE, 26(2), 184–199.
Pratiwi, A., Nurkholis, N., & Ghofar, A. (2015). Pengaruh Corporate Governance dan Struktur Kepemilikan Terhadap Asimetri Informasi. Jurnal Akuntansi & Auditing Indonesia, 19(2), 99–111. https://doi.org/10.20885/jaai.vol19.iss2.art2
Putri, D. T., & Nursiam. (2021). Ukuran Kantor Akuntan Publik (KAP), Opini Auditor, Financial Distress, dan Pergantian Manajer pada Auditor Switching. Perspektif Akuntansi, 4(3), 227–296.
Rini, P. (2021). Analisis Pengaruh Pergantian Manajemen, Audit Delay dan Opini Auditor Terhadap Pergantian Auditor Pada Perusahaan Manufaktur di Bei. Jurnal Bisnis, Logistik Dan Supply Chain, 1(2), 97–109.
Sambo, E. M. (2022). Pengaruh Opini Audit, Financial Distress, Dan Pertumbuhan Perusahaan Klien Terhadap Auditor Switching Di Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia. Insan Cita Bongaya Research Journal, 1(3), 193–203.
Simanjuntak, O. D. P., & Budianto. (2020). Analisis Faktor-Faktor Yang Mempengaruhi Perusahaan Melakukan Auditor Switching Secara Voluntary (Studi Empiris Pada Perusahaan Manufaktur Di Bursa Efek Indonesia Tahun 2016-2018). Jurnal Teknologi, Kesehatan Dan Ilmu Sosial, 2(2), 30–48.
Sinaga, A. N., Mega, Felline, & Wijaya, O. R. (2021). Pengaruh Profitabilitas (ROE), Ukuran Perusahaan, Financial distress, dan Opini Audit Terhadap Auditor switching Pada Perusahaan Manufaktur di BEI Tahun 2017-2019. Journal of Economic, Business and Accounting, 5(1), 307–317.
Sriwardany, & Dewi, R. S. (2021). Analisis Financial Distress Audit Delay Dan Opini Audit Terhadap Voluntary Auditor Switching Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia. Jurnal Riset Akuntansi Dan Bisnis, 21(1), 87–95. https://doi.org/10.30596/jrab.v21i1.6521
Swandewi, N. L. M. A., & Badera, D. N. (2021). The Effect of Audit Opinion, Audit Delay and Return on Assets on Auditor Switching (Empirical Study on Mining Companies Listed on the IDX 2015-2019 Period). American Journal of Humanities and Social Sciences Research (AJHSSR), 5(1), 593–600.
Zarefar, A., Oktari, V., & Zarefar, A. (2019). The Effect of Financial Distress, Management Turnover, Audit Opinion and Reputation of Public Accounting Firm to Auditor Switching. Research Journal of Finance and Accounting, 10(22), 100–111. https://doi.org/10.7176/RJFA/10-22-11