This study aims to examine the effect of public accounting firm size, specialized industry auditors, and audit tenure on the cost of equity capital. The formulation of the problem in this research is how the relationship between the size of the public accounting firm, specialized industry auditors, and audit tenure to the cost of equity capital.
The population in this study are manufacturing companies in the basic industry and chemical sectors listed on the Indonesian stock exchange in 2016-2018. The sample of this research was 204 companies which were determined by using positive sampling method. The data analysis method used is multiple regression analysis with the SPSS program.
The results of the analysis show that the size of the public accounting firm and audit tenure have no effect on the cost of equity capital. Meanwhile, auditor industry specialization affects the cost of equity capital.