scholarly journals Pengaruh tata kelola perusahaan, kualitas audit, dan konservatisme terhadap persyaratan agunan pinjaman

2021 ◽  
Vol 17 (2) ◽  
pp. 95-112
Author(s):  
Rani Puspa ◽  
Leni Triana ◽  
Rina Nopianti ◽  
Prastika Suwandi Tjeng

Debtors and creditors have equal access to information about default risks in competitive credit markets. Loan collateral is less important in credit decision-making in these circumstances. However, in emerging credit markets such as Indonesia, where debtors and creditors do not have equal information about a firm's prospects, the use of collateral to mitigate default risk has become common practice. Despite the strong theoretical framework for the use of collateral to secure creditors from credit risk, some Indonesian firms are exempt from providing collateral for bank debts. This study looks at how the independence of the Board of Commissioners, governance committees, audit quality, and conservatism affect the likelihood of using debt collateral. Around 785 firms listed on the Indonesia Stock Exchange were collected using Slovin's formula, during the sample period of 2017-2020. According to logistic regression analysis, firms with a more independent Board of Commissioners, a separate governance committee, Big 4 auditors, and conservative accounting policies are less likely to provide loan collateral

2020 ◽  
Vol 22 (1) ◽  
pp. 28-39
Author(s):  
Sansaloni Butar Butar

In competitive credit markets, borrowers and lenders have equal information on default risks. Under these circumstances, loan collateral are less important in credit decision-making. But in emerging credit market,  like Indonesia, borrowers and lenders do not possess equal information on firms’ future prospect, making use of collateral in mitigating default risk have become common practice. Despite strong theoretical support for the use of collateral to protect lenders from default risk, excessive protection may have a negative effect on the debt markets. However,  some Indonesian firms are not required to provide collateral for bank debts. This study examines the effect of Board of Commissioners independence, governance committees, audit quality, and conservatism on the likelihood of using loan collateral. Using slovin formula, as much as 785 firm listed in Indonesia Stock Exchange were collected during sample period of 2012-2015.  Logistic regression analysis suggest that firms with higher Board of Commissioners independence, having separate governance committee, hire Big 4 auditors, apply conservative accounting policies are less likely to provide loan collateral.


Telaah Bisnis ◽  
2019 ◽  
Vol 18 (2) ◽  
pp. 2017
Author(s):  
Aprih Susanto ◽  
Rahmatya Widyaswati

Abstract The purpose of this study was to see how the effects of earnings management on the perfor­mance of companies with audit quality and size of the company as a moderating variable. High Quality Audit demonstrated with large or small public accounting firm. The size of the company can be seen from how many assets owned by the company itself. The sample in this study is based on purposive sampling, with specific criteria that a manufacturing company listed on the Stock Exchange during the period 2011-2014 which publishes annual financial statements (annual report) in complete accordance with the measurement variables to be studied in this re­search, manufacturing company whose financial statements are audited by KAP Big 4 and non- Big 4. So in the get the 22 companies audited by the Big 4 accounting firm and the 28 companies audited by KAP Non Big 4. The results of this study variable Profit Management significant negative effect on the performance effect Perusahaan. VariabelCompany’s Size significantly strengthen the positive relationship between Profit Management with Corporate performance. Variable Audit Quality significant positive effect strengthens the relationship between the Profit Management with Corporate Performance.  


2018 ◽  
Vol 2 (2) ◽  
pp. 203-223
Author(s):  
Vera Diyanty ◽  
Eliza Fatima ◽  
Akhmad Syahroza

This study aims to investigate the effect of family ownership, family leadership, and the monitoring role of the Board of Commissioners on the audit quality. This study uses a sample of non-financial companies listed on the Indonesia Stock Exchange (IDX) from 2010 to 2013. Family ownership is measured through the ultimate ownership of the company. To determine whether the company's CEO is the founder of the company, family relationship data is used on all of the company's ultimate owners. The monitoring role of the Board of Commissioners is calculated through the Asean Corporate Governance Scorecard index. Data of auditor is obtained from Center for Supervision of Financial Service (P2PK). The results showed that family ownership either through direct or indirect mechanisms tend to choose Big 4 KAP than non Big 4. While Chief Financial Officer (CFOs) from family and corporate founders tend to choose Big 4 in auditing the company. This is done to maintain the company's reputation. The results also show that the effective monitoring of the Board of Commisionners (BOC) tends to choose Big 4 auditors compared to non Big 4.


2017 ◽  
Vol 25 (2) ◽  
pp. 191-210 ◽  
Author(s):  
Rusmin Rusmin ◽  
John Evans

Purpose The purpose of this paper is to empirically examine the relation between two dimensions of auditor quality, namely, auditor industry specialization and auditor reputation and the audit report lag. Design/methodology/approach The data collection focuses on companies listed on the Indonesia Stock Exchange for the financial year of 2010 and 2011. To ensure data homogeneity and reduce industry bias, this study focuses solely on manufacturing companies identified by the Indonesian Capital Market Directory. Findings This study finds a negative and significant association between industry-specialist auditors and audit report timeliness. Companies audited by industry-specialist auditors have shorter audit delays. The authors also find evidence that Big 4 auditors perform significantly faster audit work than their non-Big 4 counterparts. In addition, this study reports a statistical and significant relationship between auditing complexity, companies’ profitability, auditors’ business risk, and industry classification and audit report lag. The results show that firms with a large number of subsidiaries and firms experiencing poorer financial performance are found to be associated with longer reporting delays. Moreover, audit report timeliness is found to be faster for companies in the low-profile industry sector and owned by family members. Research limitations/implications Similar to other empirical investigations, this study is not without certain caveats. First, the period of audit report lag in this study reflects the audit work from the year-end to the audit report date. The authors do not consider audit work conducted outside this period in the analysis. Second, there are numerous control variables and although the authors have attempted to capture those variables to maintain the integrity of the research there are likely other excluded variables that may be important in explaining audit report timeliness. Finally, there are other factors, for example, an administrative approval process with the audit firm home office, which can affect audit report lags but have not been included in the model analysis. Future studies can seek to focus on refinements to the proxy measures for dependent and experimental variables. Practical implications Insights drawn from this study may be of assistance to policy makers as they consider the costs and benefits associated with varying levels of audit market concentration as well as providing a snapshot of the level of non-compliance on audit timeliness in Indonesia. Originality/value This study provides further empirical evidence on the relation between auditor quality and audit report lag using data from a different domestic setting. This study also enriches the auditor quality literature by employing industry-specialist and Big 4 auditors as a predictor for the timeliness of audit reports.


2020 ◽  
Vol 5 (1) ◽  
pp. 13
Author(s):  
Nibras Anny Khabibah

Abstrak: Penelitian ini bertujuan untuk mengidentifikasi hubungan managerial entrenchment, kualitas audit, dan kualitas laba. Penelitian ini dilakukan dengan menggunakan 76 sampel perusahaan manufaktur yang terdaftar di BEI dari tahun 2016-2018 (228 observasi). Managerial entrenchment diukur dengan lamanya CEO menduduki posisinya (CEO tenure), kualitas audit diukur dengan status KAP sebagai KAP big 4 atau bukan, sedangkan kualitas laba diidentifikasi dengan akrual diskresioner yang dimiliki oleh perusahaan. Penelitian ini juga menggunakan variabel kontrol yang terdiri dari leverage, ukuran perusahaan, dan profitabilitas perusahaan. Hasil penelitian menunjukkan bahwa managerial entrenchment perusahaan manufaktur di Indonesia pada tahun penelitian dilakukan tidak berhubungan dengan kualitas laba, sebaliknya kualitas audit terbukti dapat meningkatkan kualitas laba perusahaan. Selanjutnya, dari ketiga varibel kontrol yang digunakan, hanya profitabilitas yang terbukti berhubungan dengan kualitas laba.   Kata kunci: managerial entrenchment, kualitas audit, kualitas laba     Abstract: This study aims to identify the relationship between managerial entrenchment, audit quality, and earnings quality. This research was conducted using 76 samples of manufacturing companies listed in the Indonesian Stock Exchange from 2016-2018 (228 observations). Managerial entrenchment is measured by the length of CEO occupying his position (CEO tenure), Audit quality is measured by KAP status as big 4 or not, while earnings quality is identified by companies’ discretionary accruals. This study also uses a control variable consisting of leverage, company size, and company profitability. The results showed that the managerial entrenchment of manufacturing companies in Indonesia in the year of the study was not related to earnings quality, on the contrary audit quality was proven to be able to improve the earnings quality of the company. Furthermore, from the three control variables used, only profitability has been proven to be related to earnings quality.   Keywords: managerial entrechment, audit quality, earnings quality


2021 ◽  
Vol 8 (2) ◽  
pp. 159-166
Author(s):  
Rizqa Rahman

Business processes and accounting standards are becoming more complex. The role of public accountants is not optimal in detecting and preventing business continuity problems. The audit opinion has not been able to show the actual condition of the company. Whereas, high quality audits can provide good information in decision making by management, creditors, or investors. This study aims to examine whether using Big 4’s audit service are more excellent than others. Sample in this study is Indonesia State Owned Enterprises that listed in Indonesia Stock Exchange from 2015 to 2018. We use regression test and t- test as analyses technique. We finds that Big 4 have delivered better audit quality than others.


2021 ◽  
Vol 10 (1) ◽  
pp. 83-95
Author(s):  
Sarwani Sarwani ◽  
T. Husain

Individuals and organizations cannot avoid the era of the Fourth Industrial Revolution (Industry 4.0) in any part of the world by utilizing the latest technological bases. These transformations will change the way humans live and interact in the future. Enterprise decisions are taken and become the most important from the firm’s value empirical models. This study aims to establish the implications of an empirical model of a firm’s value through some determinant factors, i.e., financial ratios with profitability and leverage, intellectual capital with human capital employment, the dividend policy, and audit quality with Big 4 category proxy. The research uses a causal-comparative type with a quantitative approach. Eleven final samples of automotive and components subsectors enterprises of the listed shares in Indonesian Stock Exchange (IDX) were appointed, from 2013 till 2019 by purposive sampling technique. Multiple regression was applied to analyze data on the proposed equation models. The findings state that the profitability and audit quality has positive significance, but leverage, intellectual capital, and dividend policy insignificant implications for predicting the firm’s value empirical model.


Author(s):  
Mahmoud Ghanem El Assy

The purpose of this paper is to investigate the effect of joint audit on earnings conservatism, our proxy for audit quality, of companies listed on the Egyptian stock exchange, by examining whether companies audited by two independent auditors are more conservative than companies audited by a single auditor. In addition, we investigate whether this relationship is affected by the type of joint audit regimes (i.e., voluntary versus mandatory), and the mix of joint auditors appointed (i.e., two big 4 auditors, or two non-big 4 auditors, or one Big 4 auditor paired with one non-big 4 auditor). To test our hypotheses, we use a sample of 32 companies listed on the Egyptian stock exchange during the period 2009 through 2013. The results of our multiple regression analyses show that companies audited by joint auditors are more conservative than companies audited by single auditors. However, we find no significant difference in levels of earnings conservatism between companies audited by joint auditors mandatorily and companies audited by joint auditors voluntarily. We also find no significant difference in levels of earnings conservatism between companies audited by two big4 auditors and companies audited by two non-big4 auditors, or by one big4 auditor paired with one non-big4 auditor.


2017 ◽  
Vol 59 (3) ◽  
pp. 394-412 ◽  
Author(s):  
Mishari M. Alfraih

Purpose This paper aims to investigate the association between the composition of boards of directors and the choice of external auditor among companies listed on the Kuwait Stock Exchange (KSE) in 2013. Design/methodology/approach Consistent with prior research, audit quality is represented by two proxies, namely, a Big 4 and Non-Big 4 audit firm. Independence, diversity, interlocks, size and role duality are used as proxies for board composition. To accommodate the dichotomous dependent variable (auditor choice), a logistic regression model is used to test the hypothesized associations between board composition and auditor choice. Findings After controlling for firm-specific characteristics, results show that independence, diversity and size are statistically significant and increase the likelihood that a KSE-listed company selects a high-quality (Big 4) audit firm. Role duality is also statistically significantly but decreases the likelihood of choosing a Big 4 audit firm. Practical/implications This research has implications for regulators, shareholders, boards and academics. The paper underlines the importance of the composition of the board in increasing the likelihood of hiring a high-quality audit firm. Regulators can draw upon these results when assessing the effectiveness of corporate governance mechanisms. Originality/value This paper is among the first to study the association between auditor choice and board composition using data from the frontier market of Kuwait, thus responding to the call for empirical research into the issue in less-developed markets. Overall, it sheds light on the effectiveness of board composition and provides empirical evidence that it is an important element in the choice of auditors. The findings indicate that board composition may be a mechanism that can promote demand for high audit quality.


Author(s):  
Ramzi Benkraiem

<p class="MsoNormal" style="text-align: justify; margin: 0in 38.3pt 0pt 0.5in;"><span style="font-size: 10pt; mso-ansi-language: EN-US;"><span style="font-family: Times New Roman;">Recent debates about the functioning of boards of directors have focused on the disciplinary role of independent directors (ID). Evaluating the effectiveness of this role is an interesting empirical question. This study seeks to examine the influence of these directors and two other corporate governance mechanisms<span style="color: black;">, namely the audit quality and the ownership structure, on earnings management as measured by working capital discretionary accruals (WCDAC). The analysis, conducted over a period of 4 years from 2001 to 2004, is based on a sample of 239 different French companies listed on the Paris stock exchange. </span>The findings show that the presence of ID can moderate the management of WCDAC. This role appears to be more effective <span style="color: black;">when these ID make up at least one third of the members of boards of directors, as recommended by the Vi&eacute;not 1999 report. The Big 4 auditors can also limit this discretionary adjustment. However, no statistically significant relationship was observed between dispersion vs. concentration of ownership structure and WCDAC. This study adds to the limited research into the relationship between corporate governance and earnings management in France. It also gives empirical evidence on the effectiveness of the Vi&eacute;not 1999 report&rsquo;s recommendations. Thus, it should be of interest to academics as well as regulators in preparing and amending corporate governance laws.</span></span></span></p>


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