Analysis of Factors that Influence the Change of Public Accounting Firm in Real Estate and Property Companies Listed on the Indonesia Stock Exchange

Oct 13, 2025 by leolavanderia.com.br 120 views

Analysis of Factors that Influence the Change of Public Accounting Firm in Real Estate and Property Companies Listed on the Indonesia Stock Exchange

Introduction

The change of public accounting firm (KAP) in a company is a significant phenomenon that has garnered attention in the real estate and property industry listed on the Indonesia Stock Exchange (IDX). This study aims to analyze the factors that allegedly influence the decision of real estate and property companies to change KAP during the 2008-2013 period. The study focuses on five factors: KAP reputation, client size, client growth, return on equity (ROE), and financial pressure. The results of this study provide valuable insights into the factors that influence the change of KAP in real estate and property companies in Indonesia.

Background

The real estate and property industry is a significant sector in the Indonesian economy, with many companies listed on the IDX. The change of KAP in these companies is an attractive phenomenon to be examined, as it can have a significant impact on the company's financial performance and reputation. The choice of KAP is a critical decision that can affect the company's financial reporting, audit quality, and compliance with regulatory requirements.

Methodology

This study involved 14 real estate and property companies listed on the IDX, with a total of 78 financial statements for the 2008-2013 period. The study used a logistic regression analysis method to examine the influence of the five factors on the change of KAP. The independent variables studied were KAP reputation, client size, client growth, ROE, and financial pressure.

Results

The results of this study showed that there was no significant influence of the five factors studied on the replacement of the KAP. These findings indicate that the factors examined in this study are not a major consideration for real estate and property companies in choosing KAP. The results of this study are surprising, as one would expect that the factors studied would have a significant influence on the change of KAP.

Explanations for the Results

There are several explanations that might underlie the results of this study:

*** Other more dominant considerations: ** The change of KAP may be more influenced by other factors that are not examined in this study, such as personal relations, KAP's ability to provide special services, or audit costs. These factors may be more important in the decision-making process of real estate and property companies.

*** Limitations of Data: ** The data used in this study may not fully reflect the actual conditions of the company. Information about KAP's reputation may not be available objectively, while data regarding personal relationships and other non-quantitative factors is difficult to measure and be included in the analysis.

*** Research time span: ** The limited research period (2008-2013) may not be enough to capture changes in the trend and behavior of the company in choosing KAP. A longer observation period may be needed to understand the factors that influence the change of KAP.

Implications of the Study

Although this research found no strong evidence of the influence of the factors studied on the replacement of the KAP, this finding still provides valuable information. Further research with broader data coverage and a longer observation period is needed to understand other factors that might affect the decision of KAP changes in real estate and property companies in Indonesia. Knowledge of the factors that influence the replacement of KAP is beneficial for stakeholders, including companies, investors, and regulators. For companies, this information can help in choosing the right KAP and building mutually beneficial relationships. Investors can use this information to assess the quality of audit and financial risk of the company. Regulators can use this information to increase transparency and accountability in the capital market.

Conclusion

In conclusion, this study provides valuable insights into the factors that influence the change of KAP in real estate and property companies in Indonesia. The results of this study show that there was no significant influence of the five factors studied on the replacement of the KAP. However, this finding still provides valuable information for stakeholders, including companies, investors, and regulators. Further research is needed to understand other factors that might affect the decision of KAP changes in real estate and property companies in Indonesia.

Recommendations

Based on the findings of this study, the following recommendations are made:

Further research is needed to understand other factors that might affect the decision of KAP changes in real estate and property companies in Indonesia.
Regulators should increase transparency and accountability in the capital market by requiring companies to disclose information about their KAP.
Companies should choose their KAP based on their specific needs and circumstances, rather than relying on general factors such as KAP reputation or client size.
Investors should assess the quality of audit and financial risk of the company by examining the factors that influence the change of KAP.

Limitations of the Study

This study has several limitations, including:

The data used in this study may not fully reflect the actual conditions of the company.
The study only examined five factors that may influence the change of KAP.
The study only examined real estate and property companies listed on the IDX.
The study only examined the 2008-2013 period.

Future Research Directions

Future research should focus on understanding other factors that might affect the decision of KAP changes in real estate and property companies in Indonesia. Some potential research directions include:

Examining the influence of personal relationships on the change of KAP.
Examining the influence of KAP's ability to provide special services on the change of KAP.
Examining the influence of audit costs on the change of KAP.
Examining the influence of other non-quantitative factors on the change of KAP.

Conclusion

Q: What is the purpose of this study?

A: The purpose of this study is to analyze the factors that allegedly influence the decision of real estate and property companies to change public accounting firm (KAP) during the 2008-2013 period.

Q: What are the five factors studied in this research?

A: The five factors studied in this research are:

KAP reputation
Client size
Client growth
Return on equity (ROE)
Financial pressure

Q: What is the methodology used in this study?

A: The methodology used in this study is logistic regression analysis, which is a statistical method used to examine the relationship between a dependent variable and one or more independent variables.

Q: What are the results of this study?

A: The results of this study show that there was no significant influence of the five factors studied on the replacement of the KAP.

Q: What are some possible explanations for the results of this study?

A: Some possible explanations for the results of this study include:

Other more dominant considerations: The change of KAP may be more influenced by other factors that are not examined in this study, such as personal relations, KAP's ability to provide special services, or audit costs.
Limitations of Data: The data used in this study may not fully reflect the actual conditions of the company.
Research time span: The limited research period (2008-2013) may not be enough to capture changes in the trend and behavior of the company in choosing KAP.

Q: What are the implications of this study?

A: The implications of this study are that further research is needed to understand other factors that might affect the decision of KAP changes in real estate and property companies in Indonesia. Knowledge of the factors that influence the replacement of KAP is beneficial for stakeholders, including companies, investors, and regulators.

Q: What are some recommendations based on the findings of this study?

A: Some recommendations based on the findings of this study include:

Further research is needed to understand other factors that might affect the decision of KAP changes in real estate and property companies in Indonesia.
Regulators should increase transparency and accountability in the capital market by requiring companies to disclose information about their KAP.
Companies should choose their KAP based on their specific needs and circumstances, rather than relying on general factors such as KAP reputation or client size.
Investors should assess the quality of audit and financial risk of the company by examining the factors that influence the change of KAP.

Q: What are some limitations of this study?

A: Some limitations of this study include:

The data used in this study may not fully reflect the actual conditions of the company.
The study only examined five factors that may influence the change of KAP.
The study only examined real estate and property companies listed on the IDX.
The study only examined the 2008-2013 period.

Q: What are some future research directions?

A: Some future research directions include:

Examining the influence of personal relationships on the change of KAP.
Examining the influence of KAP's ability to provide special services on the change of KAP.
Examining the influence of audit costs on the change of KAP.
Examining the influence of other non-quantitative factors on the change of KAP.

Q: What are the conclusions of this study?

A: The conclusions of this study are that there was no significant influence of the five factors studied on the replacement of the KAP. However, this finding still provides valuable information for stakeholders, including companies, investors, and regulators. Further research is needed to understand other factors that might affect the decision of KAP changes in real estate and property companies in Indonesia.