Determinants of auditor switching : evidence from Public Listed Companies in Bursa Malaysia / Norazizah Toh

The objective of this study is to examine the factors affecting auditor switching in the context of Public Listed Companies in Bursa Malaysia. Secondary data collection method approach is used to obtain the data sourced from Bursa Malaysia. The sample of this study consists of 7271 Malaysian Public Listed Companies that represents eleven different industries for the period of 2000 to 2013. From the sample there were 645 companies that switch auditor during the period. This study defines auditor switching as dependent variable and four independent variables namely, financial risk, size of the audit firm, the percentage change in ROA, growth and also company size as control variable. From the logistic regression analysis, the results show that, all hypotheses are accepted except growth hypotheses. The results also showed that only company size have significant relationship with auditor switching.

Keywords: Auditor switching, Financial risk, Size of Audit Firm, The percentage change in ROA, Growth