Proceedings of the Social and Humaniora Research Symposium (SoRes 2018)

The Role of Firm Ownership Type and Earnings Management on Auditor Choice and Audit Fee of Non-Financial Firms

Authors
Senny Harindahyani, Jessica Avelina Yolino
Corresponding Author
Senny Harindahyani
Available Online March 2019.
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/).

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Volume Title
Proceedings of the Social and Humaniora Research Symposium (SoRes 2018)
Series
Advances in Social Science, Education and Humanities Research
Publication Date
March 2019
ISBN
10.2991/sores-18.2019.130
ISSN
2352-5398
DOI
10.2991/sores-18.2019.130How to use a DOI?
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  -