This study examines the effect of the board of commissioners’ composition on earnings management ... more This study examines the effect of the board of commissioners’ composition on earnings management with gender as a moderating variable. Firm samples were selected from Indonesian public companies for 2019-2021. By applying the purposive sampling technique, a total of 1499 company observations are available for hypothesis testing. This study found that gender does not affect the relationship between board composition and earnings management. In addition, board size has a negative relationship with earnings management, and board independence is not associated with earnings management. The practical implications of this research are as follows: 1) Companies need to increase the number of commissioners to improve the control function. 3) OJK needs to revise the minimum proportion of independent commissioners from 30% to 50% or more to improve the control function of the board of commissioners.
This study examines the effect of business strategy on tax aggressiveness and restatement. Prospe... more This study examines the effect of business strategy on tax aggressiveness and restatement. Prospectors are more aggressive in choosing accounting policies relative to defenders, thereby increasing the likelihood of restatements. Prospectors are also predicted to be more aggressive in tax planning than defenders. Sample was hand collected from Indonesian public firms in the period of 2014-2018 by using a purposive sampling method. As much as 1630 firm-year observations were gathered during the sample period and subsequently analyzed by employing multiple regressions analysis. A number of control variables are included in the regression model to control for differences in corporate governance system and firm characteristics. The corporate governance variables are Board of Commissioners independence, Audit Committee expertise, and institutional ownership. The firm characteristics variables are firm size, leverage, growth, and profitability. Results show that business strategy has an im...
Sebagai organisasi nirlaba, gereja memiliki tanggung jawab membuat laporan keuangan atas pengelol... more Sebagai organisasi nirlaba, gereja memiliki tanggung jawab membuat laporan keuangan atas pengelolaan keuangan gereja kepada para pemangku kepentingan. IAI mengeluarkan PSAK 45 sebagai standar standar pelaporan bagi organisasi nirlaba, termasuk gereja di dalamnya. penelitian ini mengeksploras pendangan penyelenggara gereja terhadap standar tersebut dari perspektif praktik penyelenggara gereja
Conceptually, a company should invest in projects that will generate a positive Net Present Value... more Conceptually, a company should invest in projects that will generate a positive Net Present Value (NPV). However, information asymmetry can lead to wrong investment decisions, namely investing in projects with a negative NPV and rejecting projects that produce a positive NPV. The wrong investment decision causes under (over) investment. This study aims to reexamine the effect of debt maturity, tangibility, foreign ownership, frequency of audit committee meetings, and company age on the company's investment efficiency. This study uses secondary data in the form of financial statements and annual reports of companies listed on the Indonesia Stock Exchange for the period 2012-2016. Number of samples used in this study are 289 companies. The results of the regression analysis show that debt maturity, tangibility have a positive effect on investment efficiency. Foreign ownership, company age, institutional ownership and managerial ownership negatively affect investment efficiency. Me...
his study examine the role of auditors and firm’s reputation in lowering firm’s cost of debt befo... more his study examine the role of auditors and firm’s reputation in lowering firm’s cost of debt before and after Initial Public Offering. Firms gradually build reputation and history in the capital markets and thus information of older firms are widely available and increasing with age. Firms with highly regarded reputation are predicted to pay lower interest rate relative to those with lower reputation. To test the hypothesis, as much as 161 sampel firms are collected from Indonesia Stock Exhange over period 2003-2012. Results show, contrary to the prediction, that auditor reputation has no association with cost of debt. However, negative association between auditor reputation and cost of debt was found for firms with short private history. In additon, the results also provide no evident of the interaction between auditor reputation and age. Taking as a whole, the findings in this study shows that the role of auditors in reducing cost of debt were effective only before firms went publ...
The objective of the study is to examine the effect of auditor's reputation and Board of Comm... more The objective of the study is to examine the effect of auditor's reputation and Board of Commissioners’ independence in improving earnings informativeness. Previous studies suggest that earnings management activities are reflected in abnormal accruals contained in financial statements. In this study, earnings informativeness is measured by the ability of abnormal accruals to predict next year's net income. As the quality of abnormal accruals increased, the predictive content of abnormal accruals is also increased. Using regression analysis, results of the study can be summarized as follows: first, abnormal accruals of company with independent Board of Commissioners has a strong correlation with the earnings one year ahead compared to companies that do not have an independent Board of Commissioners. Second, abnormal accrual of a company that has auditors affiliated with the Big Four has a strong correlation with the earnings one year ahead than firms that auditors are not aff...
Studi akrual menunjukkan hasil yang konsisten bahwa akrual memiliki kandungan informasi tambahan ... more Studi akrual menunjukkan hasil yang konsisten bahwa akrual memiliki kandungan informasi tambahan di samping arus kas. Tulisan ini bertujuan untuk memaparkan hasil-hasil riset empiris berkaitan dengan akrual dan mengidentifikasi peluang-peluang riset yang dapat dilakukan di Indonesia. Sepanjang pengetahuan penulis, belum banyak atau belum ada studi di Indonesia yang secara spesifik menguji implikasi perbedaan persistensi akrual dan arus kas terhadap harga saham pada masa depan. Di samping itu, fenomena akrual yang banyak teridentifikasi dalam studi-studi empiris menggunakan data pasar modal Amerika Serikat belum tentu merupakan fenomena tersendiri pada perusahaan-perusahan di Indonesia.
Behind what we know today as accounting lies a long and dismal story of accounting ideas which in... more Behind what we know today as accounting lies a long and dismal story of accounting ideas which involved many individuals who devoted their life in search for general theory of accounting. The story begins in the early 20th century when accounting development had shifted to America as a result of tremendous economic growth. Despite long and hard struggle for the closure of general principal of accounting thought, the history of accounting contained a never-ending controversy which had prevented accounting to develop further and gain much respect as a distinct body of knowledge. One distinguished accounting academician once said that the series of accounting development were intermittent episodes. In spite of great effort and endurence expended, the result was disapointing and general accounting theory remained an elusive objective. One reason for the failure was the lack of appreciation of conceptual arguments and ideas developed by prior theoreticians. Instead of extending and devel...
Financial statements may help investors in estimating firm’s future performance. The sooner they ... more Financial statements may help investors in estimating firm’s future performance. The sooner they are published, the more relevant the information for making investment decision. A delay in the release of financial statements may result from audit delay. Audit delay is a period of time the process of auditing measured from the date book company up to date stated in a report auditor independent. This study examines the factors that can influence the audit delay period for public companies on Indonesia Stock Exchange in 2014 to 2018. The independent variables used in this study are the existence of the governance committee, the size of the audit committee, the reputation of the firm (KAP), the company's complexity, profits and audit opinion. Employing purposive sampling method, this study collect final sample of 1866 companies which used to test the hypotheses. Using logistic regression. the evidents show that the existence of the governance committee, KAP reputation, and profit we...
The auditor profession has an important role in the business world. From time to time, the role o... more The auditor profession has an important role in the business world. From time to time, the role of the auditor in increasing the credibility of financial statements is increasingly felt and is needed by users of financial statements. The quality of financial reports is expectedly influenced by audit quality. Therefore, research on the characteristics of auditors is very important to understand the factors that affect auditor performance. This study examines the effect of career development and auditor characteristics on auditor performance. The characteristics of auditors examined are focused on auditor independence, organizational commitment, integrity, confidentiality, and motivation. The test of hypothesis is conducted by using multiple regression analysis. The sample is 64 auditors who work in public accounting firms in Semarang. The results show that career development, organizational commitment, confidentiality, and motivation have a positive effect on auditor performance. Mea...
Idiosyncratic volatility is a series of sharp increase or decreas in stock prices due to a compan... more Idiosyncratic volatility is a series of sharp increase or decreas in stock prices due to a company's fundamental. This study argues that transparent financial reports should reduce idiosyncratic volatility. Transparent financial reports are the function of CEO age, board of commissioner size, board of commissioner meetings frequency, Audit Committee meetings frequency, ownership concentration, and audit tenure. Therefore, this study examines the effect of these variables on idiosyncratic volatility. Samples were gathered from Indonesian public firms for the periode of 2014-2018. Using regression analysis for the test of hypothesis, results show that while board of commissioner meetings frequency and audit tenure have negative effects on idiosyncratic volatility, the size of the board of commissioners, concentration of ownership have positive effects on idiosyncratic volatility. On the contrary, CEO age and audit committee meetings frequency have no effects on idiosyncratic volat...
CAPM has been used as a widely accepted model forstock valuation. According to CAPM, stock risks ... more CAPM has been used as a widely accepted model forstock valuation. According to CAPM, stock risks comprise of systematic and unsystematic risks. The latter is also called idiosyncratic risk. Since idiosyncratic riskis induced by firm-specific factors, it can be removed by forming portfolio. However, some empirical findings in various capital markets indicate that idiosyncratic risk cannot be completely eliminated. Thus, stock price movements may also be influenced by firm-specific factors. Volatility of stock price movements induced by firm- specific information are commonly called idiosyncratic volatility. The objective of this research is to provide evidence of the association between Board of Commissioners characteristics and idiosyncratic volatility in Indonesian capital market. More specifically, the characteristics include Board of Commissioners independence, size, gender diversity, busyness, and meeting frequency. Using sample of indonesian public firms in 2013-2017, regressio...
This study examines the effect of the board of commissioners’ composition on earnings management ... more This study examines the effect of the board of commissioners’ composition on earnings management with gender as a moderating variable. Firm samples were selected from Indonesian public companies for 2019-2021. By applying the purposive sampling technique, a total of 1499 company observations are available for hypothesis testing. This study found that gender does not affect the relationship between board composition and earnings management. In addition, board size has a negative relationship with earnings management, and board independence is not associated with earnings management. The practical implications of this research are as follows: 1) Companies need to increase the number of commissioners to improve the control function. 3) OJK needs to revise the minimum proportion of independent commissioners from 30% to 50% or more to improve the control function of the board of commissioners.
This study examines the effect of business strategy on tax aggressiveness and restatement. Prospe... more This study examines the effect of business strategy on tax aggressiveness and restatement. Prospectors are more aggressive in choosing accounting policies relative to defenders, thereby increasing the likelihood of restatements. Prospectors are also predicted to be more aggressive in tax planning than defenders. Sample was hand collected from Indonesian public firms in the period of 2014-2018 by using a purposive sampling method. As much as 1630 firm-year observations were gathered during the sample period and subsequently analyzed by employing multiple regressions analysis. A number of control variables are included in the regression model to control for differences in corporate governance system and firm characteristics. The corporate governance variables are Board of Commissioners independence, Audit Committee expertise, and institutional ownership. The firm characteristics variables are firm size, leverage, growth, and profitability. Results show that business strategy has an im...
Sebagai organisasi nirlaba, gereja memiliki tanggung jawab membuat laporan keuangan atas pengelol... more Sebagai organisasi nirlaba, gereja memiliki tanggung jawab membuat laporan keuangan atas pengelolaan keuangan gereja kepada para pemangku kepentingan. IAI mengeluarkan PSAK 45 sebagai standar standar pelaporan bagi organisasi nirlaba, termasuk gereja di dalamnya. penelitian ini mengeksploras pendangan penyelenggara gereja terhadap standar tersebut dari perspektif praktik penyelenggara gereja
Conceptually, a company should invest in projects that will generate a positive Net Present Value... more Conceptually, a company should invest in projects that will generate a positive Net Present Value (NPV). However, information asymmetry can lead to wrong investment decisions, namely investing in projects with a negative NPV and rejecting projects that produce a positive NPV. The wrong investment decision causes under (over) investment. This study aims to reexamine the effect of debt maturity, tangibility, foreign ownership, frequency of audit committee meetings, and company age on the company's investment efficiency. This study uses secondary data in the form of financial statements and annual reports of companies listed on the Indonesia Stock Exchange for the period 2012-2016. Number of samples used in this study are 289 companies. The results of the regression analysis show that debt maturity, tangibility have a positive effect on investment efficiency. Foreign ownership, company age, institutional ownership and managerial ownership negatively affect investment efficiency. Me...
his study examine the role of auditors and firm’s reputation in lowering firm’s cost of debt befo... more his study examine the role of auditors and firm’s reputation in lowering firm’s cost of debt before and after Initial Public Offering. Firms gradually build reputation and history in the capital markets and thus information of older firms are widely available and increasing with age. Firms with highly regarded reputation are predicted to pay lower interest rate relative to those with lower reputation. To test the hypothesis, as much as 161 sampel firms are collected from Indonesia Stock Exhange over period 2003-2012. Results show, contrary to the prediction, that auditor reputation has no association with cost of debt. However, negative association between auditor reputation and cost of debt was found for firms with short private history. In additon, the results also provide no evident of the interaction between auditor reputation and age. Taking as a whole, the findings in this study shows that the role of auditors in reducing cost of debt were effective only before firms went publ...
The objective of the study is to examine the effect of auditor's reputation and Board of Comm... more The objective of the study is to examine the effect of auditor's reputation and Board of Commissioners’ independence in improving earnings informativeness. Previous studies suggest that earnings management activities are reflected in abnormal accruals contained in financial statements. In this study, earnings informativeness is measured by the ability of abnormal accruals to predict next year's net income. As the quality of abnormal accruals increased, the predictive content of abnormal accruals is also increased. Using regression analysis, results of the study can be summarized as follows: first, abnormal accruals of company with independent Board of Commissioners has a strong correlation with the earnings one year ahead compared to companies that do not have an independent Board of Commissioners. Second, abnormal accrual of a company that has auditors affiliated with the Big Four has a strong correlation with the earnings one year ahead than firms that auditors are not aff...
Studi akrual menunjukkan hasil yang konsisten bahwa akrual memiliki kandungan informasi tambahan ... more Studi akrual menunjukkan hasil yang konsisten bahwa akrual memiliki kandungan informasi tambahan di samping arus kas. Tulisan ini bertujuan untuk memaparkan hasil-hasil riset empiris berkaitan dengan akrual dan mengidentifikasi peluang-peluang riset yang dapat dilakukan di Indonesia. Sepanjang pengetahuan penulis, belum banyak atau belum ada studi di Indonesia yang secara spesifik menguji implikasi perbedaan persistensi akrual dan arus kas terhadap harga saham pada masa depan. Di samping itu, fenomena akrual yang banyak teridentifikasi dalam studi-studi empiris menggunakan data pasar modal Amerika Serikat belum tentu merupakan fenomena tersendiri pada perusahaan-perusahan di Indonesia.
Behind what we know today as accounting lies a long and dismal story of accounting ideas which in... more Behind what we know today as accounting lies a long and dismal story of accounting ideas which involved many individuals who devoted their life in search for general theory of accounting. The story begins in the early 20th century when accounting development had shifted to America as a result of tremendous economic growth. Despite long and hard struggle for the closure of general principal of accounting thought, the history of accounting contained a never-ending controversy which had prevented accounting to develop further and gain much respect as a distinct body of knowledge. One distinguished accounting academician once said that the series of accounting development were intermittent episodes. In spite of great effort and endurence expended, the result was disapointing and general accounting theory remained an elusive objective. One reason for the failure was the lack of appreciation of conceptual arguments and ideas developed by prior theoreticians. Instead of extending and devel...
Financial statements may help investors in estimating firm’s future performance. The sooner they ... more Financial statements may help investors in estimating firm’s future performance. The sooner they are published, the more relevant the information for making investment decision. A delay in the release of financial statements may result from audit delay. Audit delay is a period of time the process of auditing measured from the date book company up to date stated in a report auditor independent. This study examines the factors that can influence the audit delay period for public companies on Indonesia Stock Exchange in 2014 to 2018. The independent variables used in this study are the existence of the governance committee, the size of the audit committee, the reputation of the firm (KAP), the company's complexity, profits and audit opinion. Employing purposive sampling method, this study collect final sample of 1866 companies which used to test the hypotheses. Using logistic regression. the evidents show that the existence of the governance committee, KAP reputation, and profit we...
The auditor profession has an important role in the business world. From time to time, the role o... more The auditor profession has an important role in the business world. From time to time, the role of the auditor in increasing the credibility of financial statements is increasingly felt and is needed by users of financial statements. The quality of financial reports is expectedly influenced by audit quality. Therefore, research on the characteristics of auditors is very important to understand the factors that affect auditor performance. This study examines the effect of career development and auditor characteristics on auditor performance. The characteristics of auditors examined are focused on auditor independence, organizational commitment, integrity, confidentiality, and motivation. The test of hypothesis is conducted by using multiple regression analysis. The sample is 64 auditors who work in public accounting firms in Semarang. The results show that career development, organizational commitment, confidentiality, and motivation have a positive effect on auditor performance. Mea...
Idiosyncratic volatility is a series of sharp increase or decreas in stock prices due to a compan... more Idiosyncratic volatility is a series of sharp increase or decreas in stock prices due to a company's fundamental. This study argues that transparent financial reports should reduce idiosyncratic volatility. Transparent financial reports are the function of CEO age, board of commissioner size, board of commissioner meetings frequency, Audit Committee meetings frequency, ownership concentration, and audit tenure. Therefore, this study examines the effect of these variables on idiosyncratic volatility. Samples were gathered from Indonesian public firms for the periode of 2014-2018. Using regression analysis for the test of hypothesis, results show that while board of commissioner meetings frequency and audit tenure have negative effects on idiosyncratic volatility, the size of the board of commissioners, concentration of ownership have positive effects on idiosyncratic volatility. On the contrary, CEO age and audit committee meetings frequency have no effects on idiosyncratic volat...
CAPM has been used as a widely accepted model forstock valuation. According to CAPM, stock risks ... more CAPM has been used as a widely accepted model forstock valuation. According to CAPM, stock risks comprise of systematic and unsystematic risks. The latter is also called idiosyncratic risk. Since idiosyncratic riskis induced by firm-specific factors, it can be removed by forming portfolio. However, some empirical findings in various capital markets indicate that idiosyncratic risk cannot be completely eliminated. Thus, stock price movements may also be influenced by firm-specific factors. Volatility of stock price movements induced by firm- specific information are commonly called idiosyncratic volatility. The objective of this research is to provide evidence of the association between Board of Commissioners characteristics and idiosyncratic volatility in Indonesian capital market. More specifically, the characteristics include Board of Commissioners independence, size, gender diversity, busyness, and meeting frequency. Using sample of indonesian public firms in 2013-2017, regressio...
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