Impact of Auditor Tenure in Improving Initial Bond Ratings: The Case of Indonesian Bond Market 2007-2013  

Oleh:

Budiarti, Yohana ; Dossugi, Samuel

Jenis: Article from Journal - ilmiah nasional - tidak terakreditasi DIKTI - atma jaya
Dalam koleksi: Telaah Manajemen: Jurnal Riset & Konsep Manajemen vol. 10 no. 2 (Nov. 2015), page 187-202.
Topik: auditor tenure; initial bond rating; industry classification; subordination bond; Indonesian bond market
Fulltext: Telaah Manajemen November 2015-Hal 187-202.pdf (361.97KB)

Ketersediaan

Perpustakaan Pusat (Semanggi) Nomor Panggil: TT32 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada

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Isi artikel

This study examined the contribution of auditor tenure, which reflecting the audit quality regarding to auditor’s competence in mastering client business, toward newly issued bond ratings in Indonesian bond market. It employed the observations of initial bond ratings issued by companies in Indonesia from the period of 2007 to 2013. The results of this study are consistent with the developed hypothesis that the quality of audit opinion on financial statement is considered by rating agencies as one of determinants in establishing ratings. This study extended the research of Crabtree et al. (2006) by including financial industry in the observations to see the existence of rating sensitivity in industry classification between financial and non-financial industry in Indonesian bond market. It found that bond market participants perceived that auditor tenure significantly contributes positive impact in improving initial bond ratings. Meanwhile other variables of industry classifications and subordination bond insignificantly affect the auditor tenure in determining initial bond ratings.

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