Impact of ownership concentration on the auditor switching with modified audit opinion as mediation variable

Motivated by recent studies that show that ownership characteristics have an effect on auditor opinion and auditor change, this research examines the effect of ownership concentration on the auditor switching with modified audit opinion as a mediation variable. The explanatory variable is ownership concentration, and the explained variable is auditor change and modified audit opinion as mediating variables. The method used for analysis is called logistic regression. The data is related to manufacturing companies listed on the Tehran Stock Exchange from 2013 to 2022. Research findings show that ownership concentration has a positive and significant effect on auditor change. Ownership concentration has a significant negative effect on the modified audit opinion. Modified audit opinion mediates between ownership concentration and auditor change. Empirical findings show that high ownership concentration may increase the probability of auditor change and decrease the probability of modified audit opinions.