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Library's collection Library's IT development CancelThis research aims to analyze the relationship between auditor switching, tax avoidance, and companies' financial performance in the Indonesian natural resources industry listed in the Indonesia Stock Exchange (IDX). This research paper investigates the effect of auditor switching as an independent variable towards financial performance as the dependent variable, and the role of tax avoidance as the intervening variable. The partial least square method is used to examine 216 samples collected from 27 companies within 2011-2018.
This research proves that tax avoidance might enhance the effect of auditor switching towards financial performance as the impact is more significant than the direct effect between those two variables. This research also finds an average tax payment, which is above the standard tax rate. After all, this research is limited due to the number of sample indicators used.