The Implication of Board Composition towards External Auditor Choices

• Published in: Global business and management research Vol. 10; no. 2; p. 54
• Main Authors: Azman, Nik Amalena Najebah Nik, Selahudin, Nor Farhana, Ehambaranathan, Elengeswaran A/L C, Patin, Noratikah, Zawawi, Nor Azwani Mohd, Nadarajah, Sharmilla A/P
• Format: Journal Article
• Language: English
• Published: Global Business and Management Research: An International Journal 01.04.2018
• Subjects: Malaysia
• ISSN: 1947-5667; 1947-5667

Purpose: This study is conducted to measure the implication of board composition towards external auditor choices among Malaysian Public Listed Companies.Design/methodology/approach: By using simple random technique, 260 samples are selected from the 805 public listed companies in the main market of Bursa Malaysia. The regression analysis was used to define the relationship among the variables.Findings: The result for this study find that only the board interlocking give a significant effect towards the external auditor choices. Meanwhile all the other characteristics found not contributed to the external auditor choices among PLCs in Malaysia.Research limitations/implications: This study place high reliance on annual report to collect all the information needed and does not involve any other sources. The finding about the result might be slightly different. There are lack of references and resources in conducting this research.Practical implications: The board and the company might be able to determine their important factor that will contribute to the high quality of audit and will able to provide a better future to the all stakeholders.Keywords: External Auditor, Board Composition, Corporate Governance, Agency Theory