The impact of corporate governance and the provision of non-audit services on auditor change decision

Auditing plays a crucial role in corporate governance process and it has been shown to increase the reliability and quality of an organization’s financial performance. Hence, understanding the reasons why companies change their auditor is very important. In Malaysia, not much study has been conducted on auditor change. Thus, the study seeks to examine the impact of corporate governance and the provision of non-audit service on auditor change decision. The study used companies listed on Bursa Malaysia, as at 31st December, 2009 to 2011. Furthermore, the research used a sample size of 712 non-financial auditor change companies to test logistic regression Model of auditor change determinants. The results revealed that board independence, non-audit service, changes in management, size and big 4 are significant determinants of auditor change. The outcome of the study could improve corporate governance practices by management, and also increase the demand for audit quality in an organization. The study therefore, recommended that future studies should include additional corporate governance variables like audit committee, management ownership and ownership concentration. Lastly, a longer period of years could be covered so as to have a true reflection of the issu

The critical success factors of e-CRM implementation to small and medium enterprises

Business entities around the globe are clamouring to catch up with the recent trend of the business world using information technology (IT) applications, such as Customer Relationship Management (CRM).For any business to reap the rewards of CRM initiatives, it has to have a proper plan for its implementation.However, these business entities have little knowledge regarding the critical success factors of CRM implementation and its impact to their organizations.This study, therefore, proposes the critical success factors of e-CRM implementation to the small and medium enterprises (SMEs).The success factors include operational and strategic benefits, top management support, technological readiness, and knowledge management capabilities.This study uses organization as unit of analysis with SMEs as the target population.Data will be gathered by using a cross-sectional survey approach

The association between corporate governance and auditor switching decision

The purpose of this study is to examine the association between corporate governance and the propensity of auditor switching.In particular, the study seeks to investigate whether board independence and Chairman-CEO duality, influence the auditor-client realignment exercise. Understanding the reasons why companies switch auditor is very important as auditor switching could inhibit the flow of capital in the securities markets, and subsequently, increase the capital costs. Based on the analysis of 712 non-financial companies listed on Bursa Malaysia during the period from 31st December, 2009 to 2011, the results suggest that the companies with higher non-executive directors than the sample median tend to switch auditor.The Chairman-CEO duality, however, has no effect on the decision. The results also suggest that the provision of non-audit service, changes in key management, company size and Big 4 are significant determinants of auditor switch decision. The outcome of the study indicates the importance of sound governance on auditor switch decision and might provide insightful knowledge which helps shareholders to realize the importance of having balance BODs

The impact of corporate governance on auditor change decision

Auditing plays a crucial role in corporate governance process and it has been shown to increase the reliability and quality of an organization’s financial statements.Understanding the reasons why companies change their auditor is very important as it could inhibit the flow of capital in the securities markets and subsequently, increase the capital costs.The present study seeks to examine the impact of corporate governance on auditor change decision. Based on the analysis of 712 non-financial companies listed on Bursa Malaysia during the period from 31st December, 2009 to 2011, the results suggest that board independence, non-audit service, changes in management, company size and Big 4 are significant determinants of auditor change. The outcome of the study indicates the impact of sound governance on auditor change decision and might provide insightful knowledge which helps shareholders to realize the importance of having balance BODs

The Association between Corporate Governance and Auditor Switching Decision

The purpose of this study is to examine the association between corporate governance and the propensity of auditor switching. In particular, the study seeks to investigate whether board independence and Chairman-CEO duality, influence the auditor-client realignment exercise. Understanding the reasons why companies switch auditor is very important as auditor switching could inhibit the flow of capital in the securities markets, and subsequently, increase the capital costs. Based on the analysis of 712 non-financial companies listed on Bursa Malaysia during the period from 31st December, 2009 to 2011, the results suggest that the companies with higher non-executive directors than the sample median tend to switch auditor. The Chairman-CEO duality, however, has no effect on the decision. The results also suggest that the provision of non-audit service, changes in key management, company size and Big 4 are significant determinants of auditor switch decision. The outcome of the study indicates the importance of sound governance on auditor switch decision and might provide insightful knowledge which helps shareholders to realize the importance of having balance BODs. Keywords: Auditor Switch, Audit Market, Auditor Change, Corporate Governance, Malaysia JEL Classifications: M41, M43, M49