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The impact of corporate governance on auditor change decision

Abidin, Shamharir and Ishaya, Ishaku Vandi and Mohamad Nor, Mohamad Naimi (2016) The impact of corporate governance on auditor change decision. In: International Soft Science Conference 2016 (ISSC 2016), 11-13 April 2016, Adya Hotel, Langkawi Island, Kedah, MALAYSIA.

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Auditing plays a crucial role in corporate governance process and it has been shown to increase the reliability and quality of an organization’s financial statements.Understanding the reasons why companies change their auditor is very important as it could inhibit the flow of capital in the securities markets and subsequently, increase the capital costs.The present study seeks to examine the impact of corporate governance on auditor change decision. Based on the analysis of 712 non-financial companies listed on Bursa Malaysia during the period from 31st December, 2009 to 2011, the results suggest that board independence, non-audit service, changes in management, company size and Big 4 are significant determinants of auditor change. The outcome of the study indicates the impact of sound governance on auditor change decision and might provide insightful knowledge which helps shareholders to realize the importance of having balance BODs.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Corporate governance; non-audit services; auditor change decision; Big 4; audit quality
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Tunku Puteri Intan Safinaz School of Accountancy (TISSA)
Depositing User: Dr. Shamharir Abidin
Date Deposited: 15 Dec 2016 03:15
Last Modified: 15 Dec 2016 03:15

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