IJRR

International Journal of Research and Review

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Research Paper

Year: 2019 | Month: January | Volume: 6 | Issue: 1 | Pages: 134-143

Analysis of Factors Affecting the Substitution of Public AccountingFirm (PAF) in Property and Real Estate Companies Listed on the Indonesia Stock Exchange (IDX)

Rizki Syahputra, Dr. Iskandar Muda, Dr. Syafruddin Ginting

Universitas Sumatera Utara

Corresponding Author: Rizki Syahputra

ABSTRACT

The aim of this study was to examine and analyze the influence of factors such as the size of the Public AccountingFirm (PAF), management substitution, audit opinion, leverage, ROA percentage change, client size, company growth, and institutional ownership partially and simultaneously on the change of PAF. This study was conducted by using associative research which used secondary data. The populations in this study were all Property and Real Estate Companies listed on the Indonesia Stock Exchange in 2010-2014 which amounted to 54 companies. By purposive sampling, sample met the criteria in this study were 42 companies totaling 210 observations. The data was processed using logistic regression test with the testing grounds of the dummy variables. The results of this study proved that the partiallyPAF sizeand institutional ownership had significant effects on the substitution of PAF, meanwhile the management substitution, audit opinion, leverage, percentage of change in ROA, client size, and company growth had no significant effects on the substitution of PAF. Simultaneously, the PAF size, management substitution, audit opinion, leverage, ROA percentage change, client size, company growth, and institutional ownership did not significantly influence the PAF substitution.

Key words: PAFSize, Substitution Management, Leverage, Percentage of Change in ROA, Client Size, Growth Company, Institutional Ownership, PAF Substitution

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