Proceedings of the 1st International Conference on Social Science, Humanities, Education and Society Development, ICONS 2020, 30 November, Tegal, Indonesia

Research Article

The Consequences of Corporate Governance, Audit Fee Contract, and Financial Bankruptcy on Auditor Change in Banking Sector

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  • @INPROCEEDINGS{10.4108/eai.30-11-2020.2303717,
        author={Dien Noviany Rahmatika and Maulida Dwi Kartikasari},
        title={The Consequences of Corporate Governance, Audit Fee Contract, and Financial Bankruptcy on Auditor Change in Banking Sector},
        proceedings={Proceedings of the 1st International Conference on Social Science, Humanities, Education and Society Development, ICONS 2020, 30 November, Tegal, Indonesia},
        publisher={EAI},
        proceedings_a={ICONS},
        year={2021},
        month={1},
        keywords={corporate governance fee contracts financial bankruptcy auditor change},
        doi={10.4108/eai.30-11-2020.2303717}
    }
    
  • Dien Noviany Rahmatika
    Maulida Dwi Kartikasari
    Year: 2021
    The Consequences of Corporate Governance, Audit Fee Contract, and Financial Bankruptcy on Auditor Change in Banking Sector
    ICONS
    EAI
    DOI: 10.4108/eai.30-11-2020.2303717
Dien Noviany Rahmatika1,*, Maulida Dwi Kartikasari1
  • 1: Universitas Pancasakti Tegal Jl Halmahera KM 1 Tegal
*Contact email: diennovi@upstegal.ac.id

Abstract

This study aims to determine the consequences of orporate governance, audit fees contract, and financial bankruptcy on auditor change in banking sector. This research use 4 indicators of good corporate governance mechanism. Those indicators are managerial ownership, institusional ownership, audit comittee, and board of commisioner. This study uses a sample of banking companies listed on the Indonesia Stock Exchange during the 2016-2019 period. The number of banking companies sampled in this study were 21 companies with 4 years of observation. Based on the purposive sampling method, the total sample of research is 84 financial statements. To test the by using logistic regression analysis. The results of this study indicate that there is no impact of managerial ownership, institutional ownership, composition of the board of commissioners, audit committee, and audit fees contract on auditor change. However, audit fee contract has an positive impact on auditor change.