Determinants of Auditor Choice: Evidence from Sharia Commercial Banks in Indonesia
subject: Accountability; Auditor Choice; Governance; Sharia Commercial Banks
description: This research aims to determine the impact of corporate governance, firm complexity, foreign ownership, and ownership concentration towards auditor choice for Sharia commercial banks in Indonesia in 2016-2023. Firm size is also accounted for as a control variable. This research was conducted using a quantitative approach using the logit logistic regression analysis method through the Eviews 13 software. The sampling method was carried out using a purposive sampling method, which produced a sample of 9 Sharia commercial banks in Indonesia with a total of 72 observations. This study aims to provide an overview of the factors that Sharia commercial banks in Indonesia consider in choosing their external auditors, namely between Big 4 and non-Big Four auditors, which differ from other companies and industries. The results show that in partial analysis, corporate governance mechanisms and ownership concentration significantly and negatively affect auditor choice. Meanwhile, firm complexity and foreign ownership do not affect auditor choice. Low demands cause the negative influence of ownership concentration due to the private nature of the banks and efforts to achieve efficiency in audit fees while maintaining the same quality standards. 2025, Creative Publishing House. All rights reserved.
creator: Filianti, Dian; Dias, Rui; Rusmita, Sylva Alif; Irfan, Mohammad; Putri, Athifa Hafizha; Galv, Rosa
source: Journal of Ecohumanism;Volume;4;Issue;1;pp.4024-4037
publisher: Creative Publishing House
date: 01-01-2025
rights: All Open Access; Green Open Access; Hybrid Gold Open Access
relation: ISSN: 27526798;
format: online
language: English
type: Article
coverage: Filianti D., Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Indonesia; Dias R., Instituto Politnico de Setal, Escola Superior de Cicias Empresariais, CETRAD, Setal, Porto, Portugal, ESCAD, IPLUSO, Intrepid lab, Lisboa, Portugal; Rusmita S.A., Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Indonesia; Irfan M., School of Business and Management, Christ University, Bengaluru, India; Putri A.H., Department of Islamic Economics, Faculty of Economics and Business, Universitas Airlangga, Indonesia; Galv R., Instituto Politnico de Setal, Escola Superior de Cicias Empresariais, Setal, Portugal