scholarly journals Military Background, Political Connection, Audit Quality And Earning Quality

2020 ◽  
Vol 24 (1) ◽  
pp. 79
Author(s):  
Arif Widodo, Zaenal Fanani
Keyword(s):  
Audit Quality ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Political Connections ◽  
Political Connection ◽  
Military Background ◽  
Earning Quality ◽  
Relationship Of ◽  
The Military ◽  
The Relationship

This research is try to determine the effect of military background and political connections on earning quality with audit quality as a mediator. This research uses a quantitative approach using a sample of mining sector company that listing in Indonesia Stock Exchange in the 2017-2018 periods. The conclusion of this research points out that military background has positive effect on audit quality and political connections negatively affect earning quality. While earning quality not effected by the military background, political connections do not effect audit quality, and earnings quality not effected by audit quality. Likewise, for the hypothesis, mediation of the audit quality has no effect on the relationship of military background and political connections to earnings quality.

Corporate political connections, agency costs and audit quality

2016 ◽  
Vol 24 (4) ◽  
pp. 357-374 ◽  
Author(s):  
Arifur Khan ◽  
Dessalegn Getie Mihret ◽  
Mohammad Badrul Muttakin
Keyword(s):  
Agency Costs ◽  
Audit Quality ◽  
Agency Cost ◽  
Political Connections ◽  
Political Connection ◽  
Data Set ◽  
Research Attention ◽  
Content Type ◽  
Big 4 ◽  
The Relationship

Purpose The effect of political connections of agency costs has attracted considerable research attention due to the increasing recognition of the fact that political connection influences corporate decisions and outcomes. This paper aims to explore the association between corporate political connections and agency cost and examine whether audit quality moderates this association. Design/methodology/approach A data set of Bangladeshi listed non-financial companies is used. A usable sample of 968 firm-year observations was drawn for the period from 2005 to 2013. Asset utilisation ratio, the interaction of Tobin’s Q and free cash flow and expense ratio are used as alternative proxies for agency costs; membership to Big 4 audit firms or local associates of Big 4 firms is used as a proxy for audit quality. Findings Results show that politically connected firms exhibit higher agency costs than their unconnected counterparts, and audit quality moderates the relationship between political connection and agency costs. The results of this paper suggest the importance of audit quality to mitigate agency problem in an emerging economic setting. Research limitations/implications The findings of this paper could be of interest to regulators wishing to focus regulatory effort on significant issues influencing stock market efficiency. The findings could also inform auditors in directing audit effort through a more complete assessment of risk and determining reasonable levels of audit fees. Finally, results could inform financial statement users to direct investments to firms with lower agency costs. Originality/value To the knowledge of the authors, this study is one of the first to explore the relationship between political connection and agency costs, and the moderating effect of audit quality of this relationship.

The relationship between the companies’ political connections and audit fees

2020 ◽  
Vol 27 (4) ◽  
pp. 1123-1141 ◽  
Author(s):  
Mahdi Salehi
Keyword(s):  
Stock Exchange ◽  
Audit Fees ◽  
Political Connections ◽  
The Political ◽  
Content Type ◽  
Inverse Effect ◽  
Political Relationships ◽  
Auditor Selection ◽  
Relationship Of ◽  
The Relationship

Purpose The purpose of this study is to investigate whether the political connections of companies are correlated with auditor selection, audit fees and abnormal audit fees. Design/methodology/approach The research data contains 756 observations of companies listed on the Tehran Stock Exchange during 2011-2019. In this study, the relationship between companies with political relationships and the selection of a qualified auditor, audit fees and abnormal audit fees are reviewed. The regression used for test the hypotheses. Findings The results of hypotheses testing indicate that there is a positive and significant correlation between the political relationships of companies and certified auditor selection, auditing fees and abnormal audit fees. In addition, the political relationships of companies have a significant and inverse effect on the relationship between institutional ownership and auditing fee and abnormal audit fees. It was also found that there is a positive and significant correlation between companies and political relationships and abnormal audit fees. Originality/value So far several studies conducted on audit fees, however, no study conducted on the relationship of political relationship of the companies with audit fees and the results of the current study may bridge the gap in the current field.

scholarly journals The Role of Political Connections on Family Firms’ Performance: Evidence from Indonesia

2019 ◽  
Vol 7 (4) ◽  
pp. 55 ◽  
Author(s):  
Iman Harymawan ◽  
Mohammad Nasih ◽  
Muhammad Madyan ◽  
Diarany Sucahyati
Keyword(s):  
Family Firms ◽  
Stock Exchange ◽  
Least Square ◽  
Political Connections ◽  
Family Ownership ◽  
Ols Regression ◽  
Ordinary Least Square ◽  
Relationship Of ◽  
The Relationship

The purpose of this study is to investigate the relationship of firms with family ownership and their performance in Indonesia and further examine on how political connections affect this relationship. This study used 933 samples from 413 companies listed on the Indonesia Stock Exchange (IDX) in the period between 2014 and 2016. Using ordinary least square (OLS) regression, the results shows that firms without family ownership (non-family firms) have better performance than firms with family ownership (family firms) in Indonesia. Furthermore, the findings also show that the performance of family firms significantly improve when the firms are affiliated with political connections. Our findings imply that establishing political connections in family firms will increase the performance of the firms.

scholarly journals Pengaruh Kualitas Laba Dalam Memoderasi Hubungan Kepemilikan Kas dan Efisiensi Perusahaan (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2013-2016)

2019 ◽  
Vol 7 (1) ◽  
pp. 1477
Author(s):  
Dina Kaltsum ◽  
Nurzi Sebrina
Keyword(s):  
Sampling Method ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Cash Holdings ◽  
Secondary Data ◽  
Panel Regression ◽  
Manufacturing Companies ◽  
Accrual Quality ◽  
Relationship Of ◽  
The Relationship

This study aims to examine the effect of earnings quality in moderating the relationship of cash holdings and firms efficiency. This study is classified as causative research. The population in this study are manufacturing companies listed on the Indonesian Stock Exchange period of 2013 to 2016. By using purposive sampling method, there were 88 companies as the research’s sample. Firms Efficiency variable are measured by the DEA model, cash holdings variable are measured by cash ratio, and earnings quality variable are measure by accrual quality. The type of data used is secondary data obtained from www.idx.co.id and used is panel regression analysis. The results of this study indicate that cash holdings has a positive and significant effect on firms efficiency, but earnings quality is not able to strengthen or weaken the relationship between cash holdings and firms efficiency. Keywords: Cash holdings, earnings quality, firms Efficiency.

scholarly journals Hubungan Managerial Entrenchment dan Kualitas Audit dengan Kualitas Laba

2020 ◽  
Vol 5 (1) ◽  
pp. 13
Author(s):  
Nibras Anny Khabibah
Keyword(s):  
Audit Quality ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Control Variable ◽  
Manufacturing Companies ◽  
Managerial Entrenchment ◽  
Big 4 ◽  
Ceo Tenure ◽  
The Relationship

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

scholarly journals АUSTRO-HUNGARIAN MONUMENTS IN BANJA LUKA

AГГ+ ◽  
2019 ◽  
Vol 1 (7) ◽  
Author(s):  
Ajla Barjamović ◽  
Jelena Rađenović ◽  
Miroslav Malinović
Keyword(s):  
Contemporary Society ◽  
Habsburg Monarchy ◽  
Military Background ◽  
Military Administration ◽  
Banja Luka ◽  
Relationship Of ◽  
The Military ◽  
The Relationship

The paper deals with the establishment and architecture of Austro-Hungarian monuments erected in Banja Luka in the period 1878-1918. The monuments were erected on the orders of the military administration, based on the reputation and tradition earlier seen throughout the former Habsburg Monarchy. The paper shows three monuments, only one of which is preserved, but in a state requiring significant interventions. The paper first presents the general historical framework, then the construction of the monuments, while the final discussion questions the relationship of contemporary society to these monuments and emphasizes the importance of inheriting the historical layers of architecture and the problem of the neglection of Austro-Hungarian heritage of military background in our country.

scholarly journals The Effect of Disclosure and Earnings Quality on the Cost of Equity in Indonesia

2019 ◽  
Vol 6 (2) ◽  
pp. 42
Author(s):  
Yossy Octa Dewanti
Keyword(s):  
Data Analysis ◽  
Sampling Method ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Sample Selection ◽  
Selection Method ◽  
Cost Of Equity ◽  
The Cost ◽  
Relationship Of ◽  
The Relationship

This study aims to examine the effect of disclosure and earnings quality on the cost of equity. The theory used to explain the relationship of each variable in this study is agency theory and signal theory. The population used in this study is a manufacturing company listed on the Indonesia Stock Exchange for the period 2013-2017. The sample selection method used is the purposive sampling method and produced 87 companies as samples. Data analysis in this study used E-Views (Econometric Views). The results of this study succeeded in proving that the higher the disclosure and earnings quality can reduce the cost of equity.

scholarly journals Effect of Continuity and Smoothing of Profit on Corporate Profit- Stock Returns With Taking into Account the Heterogeneous Relationship of Profit - Efficiency on Companies Admitted to the Tehran Stock Exchange

2019 ◽  
pp. 982-989
Author(s):  
Mehdi Alinezhad Sarokolaei ◽  
Mehdi Tahmasbi
Keyword(s):  
Stock Returns ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Main Question ◽  
Corporate Profit ◽  
Current Period ◽  
The One ◽  
Corporate Profits ◽  
Relationship Of ◽  
The Relationship

The purpose of this study was to investigate the effect of continuity and smoothing of profits on the relationship between corporate profits - Stock efficiency taking into account the heterogeneous profit relationship – efficiency on companies admitted to the Tehran Stock Exchange, generally, profit has always been a factor in investor decisions. In this regard, on the one hand, accounting and stock returns are linked together, on the other hand, the variable of earnings quality is related to accounting profit and stock returns. So it may be that the question arises what is the effect of the continuity and smoothing of profits on the relationship between accounting profit and stock returns? The present research seeks to answer this question; as a result, the main question of the research is presented as follows: What is the effect of continuity and smoothing of earnings on the relationship between earnings and stock returns for listed companies in Tehran Stock Exchange? To check this, the data of 123 companies listed in Tehran Stock Exchange during the years 2012-2016 were used; data was analyzed using the Logit method using Eviews10 software. Evidence and empirical findings have shown that; both profit continuity and profit smoothing criteria have significant effects on the heterogeneous relationship between current period earnings and stock returns.

scholarly journals Effect of Continuity and Smoothing of Profit on Corporate Profit- Stock Returns With Taking into Account the Heterogeneous Relationship of Profit - Efficiency on Companies Admitted to the Tehran Stock Exchange.

2018 ◽  
pp. 693-700
Author(s):  
Mehdi Alinezhad Sarokolaei ◽  
Mehdi Tahmasbi
Keyword(s):  
Stock Returns ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Main Question ◽  
Corporate Profit ◽  
Current Period ◽  
The One ◽  
Corporate Profits ◽  
Relationship Of ◽  
The Relationship

The purpose of this study was to investigate the effect of continuity and smoothing of profits on the relationship between corporate profits - Stock efficiency taking into account the heterogeneous profit relationship – efficiency on companies admitted to the Tehran Stock Exchange, generally, profit has always been a factor in investor decisions. In this regard, on the one hand, accounting and stock returns are linked together, on the other hand, the variable of earnings quality is related to accounting profit and stock returns. So it may be that the question arises what is the effect of the continuity and smoothing of profits on the relationship between accounting profit and stock returns? The present research seeks to answer this question; as a result, the main question of the research is presented as follows: What is the effect of continuity and smoothing of earnings on the relationship between earnings and stock returns for listed companies in Tehran Stock Exchange? To check this, the data of 123 companies listed in Tehran Stock Exchange during the years 2012-2016 were used; data was analyzed using the Logit method using Eviews10 software. Evidence and empirical findings have shown that; both profit continuity and profit smoothing criteria have significant effects on the heterogeneous relationship between current period earnings and stock returns.

scholarly journals The Determinant of Earning Quality Using State Ownership as Moderating Variable on Companies in Malaysia

2021 ◽  
Vol 17 (1) ◽  
pp. 34-48
Author(s):  
Retnoningrum Hidayah ◽  
Ahwan Sholih ◽  
Linda Agustina ◽  
Rita Rahayu
Keyword(s):  
Regression Analysis ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Earnings Quality ◽  
State Ownership ◽  
Earning Quality ◽  
Corporate Social ◽  
The Relationship

Abstract: The study aims to determine the effect of disclosure of corporate social responsibility (CSRD), dividend policy, and audit committee financial expertise (ACFE) on earnings quality. It uses state ownership as a moderating variable. The population consists of government-linked companies (GLCs) and transportation and logistics sector companies listed on the Malaysia Stock Exchange for the period 2016-2019 by employing a purposive sampling method. The research analysis applies Moderate Regression Analysis (MRA) with the SPSS program. The results showed that CSRD has a positive effect on earnings quality. Meanwhile, dividend policy has a negative effect on earnings quality. Further, state ownership strengthens the relationship between dividend policy and earnings quality. However, ACFE does not affect earnings quality. At last, the moderating effect of government ownership variables is not significant to the relationship between CSRD and earnings quality.Keywords: CSR disclosure, dividend policy, ACFE, earnings quality, state ownership Faktor Penentu Kualitas Laba Dengan Kepemilikan Negara Sebagai Variabel Moderating Pada Perusahaan di MalaysiaAbstrak: Penelitian bertujuan untuk mengetahui pengaruh pengungkapan corporate social responsibility (CSRD), kebijakan deviden (dividend policy), dan keahlian keuangan komite audit (ACFE) terhadap kualitas laba (earning quality). Lebih lanjut, penelitian ini menggunakan kepemilikan pemerintah (state ownership) sebagai variabel moderating. Populasi penelitian terdiri dari government-linked companies (GLCs) dan perusahaan sektor transportasi serta logistik yang terdaftar di Malaysia Stock Exchange periode 2016-2019. Pemilihan sampel menerapkan metode purposive sampling. Analisis penelitian menggunakan Moderate Regression Analysis (MRA) dengan program SPSS. Hasil penelitian menunjukkan CSRD berpengaruh secara positif terhadap kualitas laba. Kebijakan deviden memiliki pengaruh secara negatif terhadap kualitas laba. Selanjutnya, state ownership memperkuat hubungan kebijakan deviden dan kualitas laba. Namun, ACFE tidak mampu memberikan pengaruh terhadap kualitas laba. Selanjutnya, pengaruh moderasi variabel kepemilikan pemerintah tidak signikan terhadap hubungan antara CSRD terhadap kualitas laba.Kata kunci: pengungkapan CSR, kebijakan deviden, ACFE, kualitas laba, kepemilikan negara

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