Auditor Switching, Tenure, and Corporate Performance: The Saudi Evidence

Abstract

The main purpose of this study is to assess the potential relationship between Auditor switching (SWT), Tenure (TEN), and company performance (PERF). The data is derived from listed companies in the Tadawul All Share Index (TASI). I utilized regression models, which include dependent variables of ROA, ROE and EPS, as proxies for PERF, while SWT and TEN are used as independent variables. The results show that SWT has no impact on PERF. Similarly, the analysis reveals that there is no statistical association between TEN and PERF. The findings offer a new perspective on the effect of SWT and TEN on PERF, which may be of interest to investors, decisionmakers, and policymakers.