scholarly journals The role of moderating audit quality relationship between corporate characteristics and financial distress in the Indonesian mining sector

2020 ◽  
Vol 17 (2) ◽  
pp. 88-100
Author(s):  
Perdana Wahyu Santosa ◽  
Martua Eliakim Tambunan ◽  
Eva Rohima Kumullah
Keyword(s):  
Corporate Governance ◽  
Financial Distress ◽  
Audit Quality ◽  
Stock Exchange ◽  
Binary Logistic Regression ◽  
Financial Statements ◽  
Binary Logistic Regression Model ◽  
Mining Sector ◽  
Managerial Implications

Financial performance and corporate governance play an important role in financial distress in the mining sector, which is one of the most significant contributors to the Indonesian economy. This study aims to analyze the effect of corporate characteristics on financial distress (FD), which is moderated by corporate governance (audit quality), and uses the controlling variables (inflation rate and GDP). The study uses data from audited financial statements from mining sector in the Indonesia Stock Exchange for the period 2013–2018. Since the dependent variable (FD) is dichotomous, this study used a binary logistic regression model, as it is the case in many studies regarding the probability of bankruptcy filing. In line with the current study and some previous studies, leverage, efficiency (activity), market-to-book value, audit quality, and GDP affect the probability of financial distress significantly. Only liquidity and inflation do not impact FD. Besides, the moderating audit quality weakens the effect of liquidity and PBV; otherwise, it strengthens leverage and efficiency in predicting financial distress. As for managerial implications, this study concludes that corporate performance, corporate governance, and macro-risk factors affect the probability of financial distress. The authors suggest that mining firms need to pay attention to corporate governance and should watch the economic condition for business sustainability.

scholarly journals The Role of Ethnicity, Gender and Diversity of Director's Experience on Company Performance

2021 ◽  
Vol 6 (1) ◽  
pp. 25-31
Author(s):  
Anita Ade Rahma ◽  
Titah Fadhilah Harahap ◽  
Desi Ilona ◽  
Febri Aldi
Keyword(s):  
Board Of Directors ◽  
Audit Quality ◽  
Annual Report ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Company Performance ◽  
Insignificant Effect ◽  
The Board Of Directors

This study aimed to analyze the influence of ethnicity, gender and board of director’s experience diversity on the company performance. The data used are secondary data from the financial statements and annual report from 2011 to 2017. Samples were taken  randomly on all companies listed in Indonesia Stock Exchange as many as 266 companies. The results of this study prove that ethnicity and experience of the board of directors not significantly effect on company performance (ROS). However, the results of gender on board of directors showed negative and significant impact on company performance (ROS). Company age and audit quality have insignificant effect on company performance (ROS).

scholarly journals Kualitas Audit: Pengaruh Karakteristik Perusahaan dan Tata Kelola Perusahaan

2019 ◽  
Vol 3 (1) ◽  
pp. 58
Author(s):  
Cynthia Dewi ◽  
Anita Anita
Keyword(s):  
Sampling Method ◽  
Audit Quality ◽  
Stock Exchange ◽  
Negative Relationship ◽  
Binary Logistic Regression ◽  
Institutional Ownership ◽  
Financial Statements ◽  
Foreign Ownership ◽  
Board Independence ◽  
Board Size

The purpose of this study is to quantify the effect of company’s characteristics and corporate governance towards audit quality in companies listed in the Indonesia Stock Exchange (IDX). Independent board, board size, foreign ownership, ownership concentration, profitability as well as institutional ownership is used in this study. The amount of 618 companies listed on the Indonesia Stock Exchange during the period of 2013-2017 is used in this study. Purposive sampling method is used in the study. Financial statements of company that was published (www.idx.co.id) used as the sample of this study. The calibration of data which was obtained with binary logistic regression will be process using the program of SPSS version 25.0. This research shows that board size, foreign ownership and profitability proved to have a positive and significant relation on audit quality. This research also shows that institutional ownership does not have a significant relationship on audit quality while board independence has a negative relationship towards audit quality.

scholarly journals The Effect of Good Corporate Governance (GCG) Mechanism on Earnings Management Practices of The Stubben Model (Study Case on Mining Sector Companies Listed on The Indonesia Stock Exchange 2014-2019)

2020 ◽  
Vol 5 (6) ◽  
Author(s):  
Muhammad Fairus ◽  
Pardomuan Sihombing
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Management Practices ◽  
Audit Quality ◽  
Stock Exchange ◽  
Sample Selection ◽  
Process Data ◽  
Mining Sector ◽  
Good Corporate Governance ◽  
The Impact

This study was prepared with the intention of analyzing the impact of the Good Corporate Governance (GCG) Mechanism on the Stubben Model of Profit Management (analysis of Mining Sector Companies on the Indonesia Stock Exchange for the period 2014-2019). The population used in the study is the mining sector companies on the IDX. The sample selection method used purposive sampling technique. To process data after sample selection, compile a research model, determine the variables analyzed in the study, and propose a hypothesis, the next step is to carry out data processing procedures through regression analysis with panel data. The results of the analysis conclude that (1) Institutional Ownership has a negative and significant impact on Earnings Management, (2) Managerial Ownership has a negative and significant impact on Earnings Management, (3) The Independent Board of Commissioners has a negative and significant impact on Earnings Management, (4) The Audit Committee has a negative and significant impact on Earnings Management, and (5) Audit Quality has a negative and significant impact on Earnings Management.

scholarly journals The moderating role of audit quality and firm size in the effect of corporate governance on related party transactions: Evidence from Indonesia

2021 ◽  
Vol 18 (4) ◽  
pp. 166-176
Author(s):  
Perdana Wahyu Santosa ◽  
Sovi Ismawati Rahayu ◽  
Zainal Zawir Simon ◽  
Martua Eliakim Tambunan
Keyword(s):  
Corporate Governance ◽  
Firm Size ◽  
Firm Value ◽  
Information Quality ◽  
Audit Quality ◽  
Stock Exchange ◽  
Transfer Pricing ◽  
Complete Information ◽  
Related Party Transactions

This study aims to analyze the essential corporate governance determinants of related party transactions (RPTs) in Indonesia. Based on a hand-collected sample of three business groups of small, medium, and large-cap publicly listed firms on the Indonesia Stock Exchange (IDX) for 2013–2019, panel regression results find that foreign shareholders and firm size have a significant effect, at –2.402 and 0.248, respectively. The moderating model of audit quality shows that domestic shareholders, foreign shareholders, and firm size are significantly negatively associated, with –5.627 and –5.958 at 5%, respectively. Similar results show that foreign shareholders and independent commissioners significantly negatively affect related party transactions at –2.864 and –1.845, moderating the firm size at 10% and 5%, respectively. The moderation of regression results also indicates that audit quality and firm size tend to strengthen negative effects on the association between related party transactions and corporate governance. The moderation interaction confirms that audit quality will determine that domestic and foreign shareholders tend to increase the number of affiliate transactions. The interaction of complete information quality will force domestic and foreign shareholders to increase the role of affiliate transactions in creating firm value. The larger size of the firm, which is owned by foreign shareholders, will increase the intensity of cross-border related party transactions through the combined effects in the context of internationalization with a tendency of expropriation and transfer pricing practices, which can reduce government tax incomes. Acknowledgment We are grateful to the Ministry of Education, Culture, Research and Technology, Indonesia, for research grant No. 163/E4.1/AK.04.PT/2021, as well as the editor of the Investment Management and Financial Innovations journal, peer reviewers, and some colleagues for their suggestions, criticism and comments that significantly improved this paper.

scholarly journals Pengaruh Financial Distress, Umur Perusahaan, dan Good Corporate Governance pada Kecepatan Publikasi Laporan Keuangan Tahunan

2019 ◽  
pp. 2010
Author(s):  
Arl Jonathan Paulalengan ◽  
Ni Made Dwi Ratnadi
Keyword(s):  
Corporate Governance ◽  
Financial Distress ◽  
Stock Exchange ◽  
Participant Observation ◽  
Sampling Technique ◽  
Financial Statements ◽  
Good Corporate Governance ◽  
Observation Methods ◽  
Food And Beverage ◽  
Negative Effect

The purpose of this study examines the effect of financial distress, company age, and good corporate governance on the speed of publication of annual financial statements. This research was focused in the food and beverage companies listed on Indonesia Stock Exchange (IDX). Samples are determined by non-probability sampling, purposive sampling technique. Sample criteria, the company reports its annual financial statements in a row from 2014 to 2017. The samples were 12 companies with four years of observation. Methods of collecting data with non-participant observation, accessing annual financial reports. The data analysis technique is multiple linear regression. Based on the results, found that financial distress had a negative effect on the speed of publication of annual financial statements. The age of the company does not affect the speed of publication of annual financial statements. Good corporate governance has a positive effect on the speed of publication of annual financial statements. Keywords: Publication, distress, good corporate governance, age

scholarly journals The Relationship between Audit Committee Characteristics, Audit Firm Quality and Companies’ Profitability

2015 ◽  
Vol 7 (2) ◽  
pp. 215
Author(s):  
Laith A Aryan
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Audit Quality ◽  
Financial Statements ◽  
Industrial Sector ◽  
Committee Meeting ◽  
Audit Firm ◽  
The Relationship

<p>Jordan displayed keen interest in corporate governance in terms of enhancing the quality of financial statements and to restore the investors’ confidence. This study aimed to highlight the role of audit committee and external audit in enhancing companies’ profitability. Since there are contradictions in previous studies results, there is a need to test these relationships in Jordanian context to provide empirical evidence on this issue,especially after the corporate governance application became mandatory since 2009. This study has used industrial sector, which include 91 companies, only 69 companies were included in this study, the other 22 companies were excluded either newly listed or delisted during the study period (2009-2014). Multiple regression were used to analyze the data, the result showed positive relationships between audit committee meeting, audit committee size and companies profitability, while no significant relationship between audit committee composition, audit committee members literacy, audit quality and companies profitability. Such results would be beneficial to companies’ corporate governance committees to play their supervisory role. </p>

scholarly journals The Effect of Audit Tenure, Audit Rotation, Audit Fee, Accounting Firm Size, and Auditor Specialization to Audit Quality

2019 ◽  
Vol 4 (3) ◽  
pp. 186-196 ◽  
Author(s):  
Shinta Permata Sari ◽  
Ayu Aris Diyanti ◽  
Rita Wijayanti
Keyword(s):  
Firm Size ◽  
Sampling Method ◽  
Audit Quality ◽  
Stock Exchange ◽  
Financial Statements ◽  
Manufacturing Companies ◽  
Accounting Firm ◽  
Audit Fee ◽  
Auditor Specialization

The company management has a responsibility to run the company activities by reporting the resultsthrough financial statements. The role of an auditor is needed to mediate the management's interest and share holder’s concern.An auditor is an independent part of giving an opinion about the information contained in the financial statementsthroughits audit quality. Audit quality can be reduced if the auditor is not independent anymore. This study aims to analyze the effect of audit tenure, audit rotation,audit fee, accounting firm size, and auditor specialization to audit quality. The population of the study is manufacturing companies listed on the Indonesia Stock Exchange in2015-2017. The sample was taken by a purposive sampling method and obtained 50 companies as samples. Data were tested using logistic regression. The results of this study indicate that audit rotation,fee audit, and accounting firm size do not affect audit quality,meanwhile, the audit tenure and auditor specialization affect audit quality.

scholarly journals THE EFFECT OF INDEPENDENT COMMISSIONERS, AUDIT COMMITTEES, FINANCIAL DISTRESS, AND COMPANY SIZES ON INTEGRITY OF FINANCIAL STATEMENTS

2019 ◽  
Vol 7 (12) ◽  
pp. 744-750
Author(s):  
Intan Permatasari
Keyword(s):  
Corporate Governance ◽  
Financial Distress ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Audit Committees ◽  
Company Size ◽  
Good Corporate Governance ◽  
Conceptual Paper ◽  
Positive Effect

This study is a conceptual paper that aims to determine the effect of independent commissioners, audit committees, financial distress, and company size on the integrity of financial statements. Previous theoretical studies have shown that the mechanism of good corporate governance, financial distress, and company size can affect the integrity of financial statements. From theoretical discussions and previous research, conclusions are obtained while independent commissioners, audit committees, financial distress, and company size on the integrity of financial statements have a positive effect. This study uses secondary data in the form of annual financial statements of financial sector companies listed on the Indonesia Stock Exchange (BEI) from 2012 to 2018. The renewal in this study is the mechanism of good corporate governance that is used in this study only independent commissioners and audit committees. In addition, the year of research and the sample of research to be studied differ from previous studies

scholarly journals Pengaruh Financial Distress Dan Ukuran Kap Terhadap Kualitas Audit

2021 ◽  
Vol 8 (2) ◽  
pp. 159-166
Author(s):  
Rizqa Rahman
Keyword(s):  
Financial Distress ◽  
Business Processes ◽  
Audit Quality ◽  
Stock Exchange ◽  
Accounting Standards ◽  
Actual Condition ◽  
Audit Opinion ◽  
Big 4 ◽  
Regression Test

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.

scholarly journals Factors Influencing Financial Distress and Its Impact on Company Values of the Sub-Sectors Firms in Indonesian

2018 ◽  
Vol 1 (2) ◽  
pp. 191-204
Author(s):  
Milla Alsura Murtadha ◽  
Muhammad Arfan ◽  
Mulia Saputra
Keyword(s):  
Corporate Governance ◽  
Firm Size ◽  
Significant Influence ◽  
Financial Distress ◽  
Sampling Method ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Analysis Model ◽  
Company Value

AbstractObjective – The purpose of this study is to determine the influence of corporate governance, profitability, and firm size on financial distress and its impact to the company value of the sub-sectors companies in infrastructure, utilities, and transportation that are listed in Indonesia Stock Exchange for the period of 2011-2015. Design/methodology – The secondary data in the form of financial statements are collected from the sub-sector companies in infrastructure, utilities, and transportation thand from the Indonesian Capital Market Directory (ICMD). The data is taken from the companies listed in Indonesia Stock Exchange in period of 2011-2015. Samples are determined by using purposive sampling method and the samples are selected based on certain considerations or criteria. The analysis model used in this study is path analysis. Results – The results show that in the first line; corporate governance, profitability and firm size, both partially and simultaneously have significant influence on financial distress of the sub-sector companies on infrastructure, utilities, and transportation that are listed in Indonesia Stock Exchange. In the second track, corporate governance, profitability, firm size and financial distress both partially and simultaneously have significant influence on the company value in the sub-sectors of infrastructure, utilities, and transportation that are listed in Indonesia Stock Exchange. Research limitations/implications – The time of observation of the study is only 5 years and it does not properly reflect the actual phenomenon. The samples of the study are only limited to  Sub-Sector companies in Infrastructure, Utilities, Transportation even though there are still many other companies that are listed in Indonesia Stock Exchange.

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