THE INFLUENCE OF CORPORATE GOVERNANCE MECHANISM TOWARDS EXTERNAL AUDITOR INDEPENDENCE

Abstract

This research wants to prove empirically the relation between audit committee size, audit committee meeting, board of director size, board of director meeting, institutional ownership, Foreign ownership, company size, company lifespan and auditor independence. The sample used in this research were gained from audited financial report and annual report of public companies listed in Indonesia Stock Exchange (IDX) for the period of 2011-2017. Purposive sampling was used and generate 23 companies that fit the criteria. The analytical method used in this research is binary logistic regression. The result shows that audit committee size, audit committee meeting, board size, board meeting and company size has positive significant relation towards auditor independence. On the contrary, institutional ownership, foreign ownership and company age does not seem to have significant influence towards auditor independence.