SRIWIJAYA INTERNATIONAL JOURNAL OF DYNAMIC ECONOMICS AND BUSINESS
SIJDEB, Vol. 7, No. 2, June 2023

Auditor Choice in Indonesia Listed Family Firms

Hasni Yusrianti ((SCOPUS ID: 57189456496) Universitas Sriwijaya)
Tertiarto Wahyudi (Universitas Sriwijaya)
Aryanto Aryanto (Universitas Sriwijaya)



Article Info

Publish Date
21 Sep 2023

Abstract

This study aims to empirically examine the auditor choice in family firms. The study investigates the relationship between family firms, family ownership, and the family identity of the CEO with auditor choice. The research sample consists of 931 firm-year observations non-financial listed companies on the Indonesia Stock Exchange in 2015- 2021. A company is considered to use a high-quality auditor if it is audited by one of the BIG 4 Firms. Logistic regression analysis results indicate that family firms are less likely to hire high-quality auditors compared to non-family firms. Besides, the percentage of family ownership is negatively related to auditor choice, where companies with higher family ownership less likely to hire high-quality auditors. In terms of the family identity of the CEO, companies with a descendant CEO are less likely to hire high-quality auditors. However, the presence of a founding family CEO and a professional CEO is not related to auditor choice.

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Journal Info

Abbrev

SIJDEB

Publisher

Subject

Economics, Econometrics & Finance

Description

The SIJDEB invites manuscripts in the various topics include, but not limited to functional areas of Financial Management, Marketing Management, Human Resource Management, Entrepreneurship, Strategic Management, Public Economics, Monetary Economics, Industrial Economics, Human Resource Economics, ...