The Effect of Financial Distress, Company Growth Rate and Company Complexity on Auditor Switching in Manufacturing Companies

ABSTRACT: This study aims to obtain empirical evidence of the effect of financial distress, company growth rate, and company complexity on auditor switching in manufacturing companies of Indonesia Stock Exchange which were listed in 2015 – 2019. The study was conducted by analyzing annual financial reports published on the IDX website. The sampling method used was purposive sampling method. The sample in this study were 25 manufacturing companies. The data analysis technique used logistic regression. The results showed that financial distress had a positive and significant effect on auditor switching, the company growth had a negative and significant effect on auditor switching, and company complexity had a negative and significant effect on auditor switching.
KEYWORDS: auditor switching, financial distress, company growth rate, company complexity