Good corporate governance mechanism in measuring quality of financial statements and transfer investor levels

This study aims to develop a theory of determining the quality of financial statement reports that can increase investor confidence in financial information presented by management. This research would like to find the role of good corporate governance in improving the quality of financial statements as measured by accounting conservatism and earnings management, then it will be seen how the quality ability of financial statement can influence investor confidence level. The result of the research did not find the influence of corporate governance mechanism on the quality of financial statements. However, the simultaneous test results found that corporate governance mechanisms and the quality of financial statements affect the level of investor confidence. Profit management as an indicator of the quality of financial statements negatively affects the level of investor confidence. But accounting conservatism declared no effect on the level of investor confidence. The results of the test with path analysis found that the variables that have a direct influence of the mechanism of good corporate governance is the ownership of the institution, while other variables have no influence either directly or indirectly.

The effect of good corporate governance mechanism and leverage on the level of accounting conservatism

The Indonesian Accounting Review ◽

10.14414/tiar.v6i1.854 ◽

2017 ◽

Vol 6 (1) ◽

pp. 67

Author(s):

Habiba Habiba

Keyword(s):

Corporate Governance ◽

Audit Committee ◽

Stock Exchange ◽

Accounting Conservatism ◽

Managerial Ownership ◽

Governance Mechanism ◽

Manufacturing Companies ◽

Comprehensive Income ◽

Accounting conservatism is a condition where a company acknowledges the debts and costs more quickly, but on the other hand, the company acknowledges the income and assets more slowly. Some factors that can affect the accounting conservatism are stan-dards changes, corporate governance, and so forth. The purpose of this study is to analyze the effect occurring on the variable of accounting conservatism when using comprehensive income and income for the current year in manufacturing companies listed on the Indonesian Stock Exchange in 2012 and 2013. The variables studied are institutional ownership, managerial ownership, the existence of audit committee, the number of audit committee meetings, and leverage. The statistical method used in this study is multiple regression analysis. The results of this study indicate that institu-tional ownership, managerial ownership, and the number of audit committee meetings do not have significant effect on accounting conservatism when using comprehensive income and income for the current year, but the variables of the existence of audit committee and leverage have significant effect on accounting conservatism when using comprehensive income and income for current the year.

Analisis Pengaruh Standar Audit Syariah terhadap Kualitas Penyajian Laporan Keuangan Pada Baitul Mal wa Tamwil di Kabupaten Wonogiri

FALAH Jurnal Ekonomi Syariah ◽

10.22219/jes.v4i2.9871 ◽

2019 ◽

Vol 4 (2) ◽

pp. 17

Author(s):

Risky Yuniar Rahmadieni ◽

Ibnu Qizam

Keyword(s):

Corporate Governance ◽

Accounting Standards ◽

Financial Statements ◽

Financial Statement ◽

Regional Office ◽

Financial Report ◽

Simultaneous Test ◽

Convenience Sampling ◽

Work Ethos

The purpose of this study was to determine the extent to which the Statement of Islamic Accounting Standards, Sharia Audit, Sharia Supervision, Islamic Corporate Governance, and Islamic Work Ethos affect the Quality of Sharia Financial Statement Presentation in the Baitul Wat Mal of Wonogiri Regency Regional Office. This study uses a quantitative approach. Samples were taken by convenience sampling method. The research objects encompass five BMT’s located approximately 10 km away from the Wonogiri Regent's Office which consists of three sub-districts, namely Selogiri, Wonogiri, and Ngadirojo. 35 questioners are processed and analyzed using SPSS Version 23. The variables of interest include 12 PSAK, 16 sharia audit, 8 sharia supervision, 3 ICG, 8 Islamic work ethos and 27 quality indicators of sharia financial report. Based on the results of this study, there are many effects of statement of Islamic accounting standards and Islamic work ethos on the quality presentation of Islamic financial statements. On the other hand, Islamic auditing, sharia supervision, Islamic corporate governance can not affect the quality presentation of sharia financial statements. Simultaneous test, the statement of sharia accounting standards, sharia audits, sharia supervision, Islamic corporate governance and the Islamic work ethos at the same time influence on the quality presentation of the sharia financial report.

INFLUENCE OF AUDITOR INDEPENDENCE AND GOOD CORPORATE GOVERNANCE TOWARD ACCOUNTING CONSERVATISM IN INDONESIA

JOURNAL OF APPLIED MANAGERIAL ACCOUNTING ◽

10.30871/jama.v1i1.1231 ◽

2019 ◽

Vol 1 (1) ◽

pp. 20-29

Author(s):

Dovi Septiari ◽

Wirdani Atika Sari

Keyword(s):

Corporate Governance ◽

Internal Control ◽

Stock Exchange ◽

Sample Selection ◽

Financial Statements ◽

Auditor Independence ◽

Accounting Conservatism ◽

Managerial Ownership ◽

Internal Control System

Accounting conservatism is the precautionary principle to the profit recognition and one of the corporate governance to reduce the ability of the manager in manipulate and exaggerating the financial statements. Corporate governance is a internal control system which has its business objectives through securing company’s assets. This research is aiming to see the correlation among auditor independence and good corporate governance in accounting conservatism. Characteristics of good corporate governance in this are managerial ownership, profitability, company size and leverage. This research uses two measurements of conservatism non operating accrual and market to book ratio. This research as carried out at manufacture company in the Indonesia Stock Exchange in 2010-2014. Sample selection do by purposive sampling method and obtained 49 companies in criteria accordingly. This research used data analysis and multiple liniear regression program eviews 9. The result showed that the effect of auditor independence is not significant in accounting conservatism in indonesia. Good corporate governance influential only the size of the company and ownership. The measurement of non operating accrual and market to book ratio show different results. Further research is expected to use another proxy for other variables to measure accounting conservatism.

The Effect of the Internal Control System Effectiveness and the Quality of Financial Reporting and Its Impact on Fraud Prevention of Bandung Regency

Jurnal Manajemen Pelayanan Publik ◽

10.24198/jmpp.v5i1.25785 ◽

2021 ◽

Vol 5 (1) ◽

pp. 13

Author(s):

Yasmin Yasmin ◽

Srihadi Winarningsih ◽

Sri Mulyanti

Keyword(s):

Corporate Governance ◽

Control System ◽

Internal Control ◽

Financial Statements ◽

Research Approach ◽

Fraud Prevention ◽

Internal Control System ◽

System Effectiveness

The corruption has emerged as the main topic of discussion in many countries and fraud prevention becomes important as well. The 2018 Annual Report of the Corruption Eradication Commission (KPK) revealed that in general the KPK's enforcement action over the past 10 years showed a significant increase. This was also confirmed by President Jokowi that one of the big problems of Indonesia is related to Corruption This study is aimed to discover fraud prevention from the perspective of financial statements through the internal control system effectiveness and good corporate governance implementation.This study uses an explanatory research approach to analyze how one variable affects other variables through hypothesis testing. The data was collected using a questionnaire which distributed and filled by all regional authorities in Bandung Regency and then analyzed through path analysis using SPSS data processing tools. The results indicate that the effectiveness of internal control systems along with the good corporate governance implementation and the quality of financial statements have a positive effect on fraud prevention and partially the effectiveness variable of the internal control system has no significant effect, while the other two variables have a significant effect.

Corporate Governance Mechanism on Financial Performance (Evidence from the Indonesia’s Listed State-owned Enterprises)

Journal of Business, Management, and Social Studies ◽

10.53748/jbms.v1i1.6 ◽

2021 ◽

Vol 1 (1) ◽

pp. 24-34

Author(s):

Anak Agung Kompiyang Ratih Maldini ◽

Pananda Pasaribu ◽

Christian Haposan Pangaribuan

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Positive Impact ◽

Stock Exchange ◽

Governance Structure ◽

Board Independence ◽

Governance Mechanism ◽

Corporate Governance Mechanism ◽

The Impact

Objective – This study aims to find the impact of privatization, which proxied by good corporate governance toward the financial performance of SOEs in Indonesia. Methodology – This study used 16 privatized SOEs that are listed in Indonesia Stock Exchange and also 16 privatized non-SOEs as the comparison. The data is collected from the year 2014 to 2018 and analyzed by using multiple regression panel data. Findings – This study found that director size and board independence have a positive impact toward SOEs financial performance. The director size and board independences have a positive significant impact toward the SOEs financial performance while the privatized non-SOEs is not significantly affected Novelty – This study examines proper governance structure in SOEs and non-SOEs, thus providing new insights about good corporate governance regulation in the Indonesian context.

Business Strategy, Accounting Conservatism and Performance

Accounting and Finance Research ◽

10.5430/afr.v9n2p23 ◽

2020 ◽

Vol 9 (2) ◽

pp. 23

Author(s):

Han Li

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Internal Control ◽

Business Strategy ◽

Joint Effect ◽

Accounting Conservatism ◽

Governance Mechanism ◽

Negative Effect ◽

Corporate Governance Mechanism ◽

And Performance

This research consists with prior business strategy typology and accounting conservatism theories. It investigates the joint effect of business strategy and accounting conservatism on the firm’s financial performance. The paper finds that accounting conservatism as a prudent accounting reporting principle plays an important corporate governance mechanism. The conservatism can mitigate the negative effect of the aggressive business strategy. The joint effect between business strategy and accounting conservatism is positively related with financial performance. The result is robustness when the different measurements of the strategy and the conservatism are applied. When the firm has weak internal control quality, the joint effect on financial performance also exists significantly.

Pengaruh Ukuran Perusahaan dan Profitabilitas pada Ketepatwaktuan Penyampaian Laporan Keuangan dengan GCG Sebagai Variabel Pemoderasi

E-Jurnal Akuntansi ◽

10.24843/eja.2018.v25.i01.p20 ◽

2018 ◽

pp. 525

Author(s):

Gusti Ayu Putu Yasinta Darmawan ◽

I Made Pande Dwiana Putra

Keyword(s):

Corporate Governance ◽

Firm Size ◽

Participant Observation ◽

Financial Statements ◽

Financial Statement ◽

Company Size ◽

Moderator Variable ◽

Public Companies ◽

Timely Delivery

This study aims to prove empirically the influence of company size and profitability on timely delivery of financial statements with good corporate governance as a moderator variable. This study was conducted on non-financial public and go public companies listed in the 2011-2015 Corporate Governance Perception Index (CGPI) assessment. The method of determining the sample used is to use purposive sampling. The number of companies that meet the criteria is 9 companies with a total number of 43 observations. Data collection was done by non participant observation method. By using Multiple Regression Test and Moderated Regression Analysis (MRA), it was found that firm size did not affect the timeliness of financial statement submission but profitability had an effect on the timeliness of financial statement submission. The study also found that good corporate governance is not able to moderate the influence of firm size on the timeliness of financial statement submission but able to moderate by weakening the influence of profitability on timely delivery of financial statements Keywords: Timeliness of Financial Report Submission, Company Size, Profitability, Good Corporate Governance

PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP MANAJEMEN LABA

El Muhasaba Jurnal Akuntansi ◽

10.18860/em.v1i2.1873 ◽

2012 ◽

Vol 1 (2) ◽

Author(s):

Yufenti Oktafia

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Business Performance ◽

Conflicts Of Interest ◽

Financial Statements ◽

Financial Statement ◽

Corporate Management ◽

Financial Reports ◽

Discretionary Accrual ◽

Good Corporate Governance

Earning managements is a management action in the process of preparing financial statements to influence the level of earnings that is displayed. Earnings management is one factor that can reduce the credibility of financial statements. Add to bias earnings management in the financial statements and can interfere with the use of a trusted financial reports profit figures as a result of these engineering profit numbers without engineering. Corporate governance is a concept proposed to improve business performance through supervision or monitoring management performance and ensuring accountability of management to the stakeholders with a framework based on rules. The concept of corporate governance as proposed for the achievement of corporate management more transparent to all users of financial statements. If this concept is applied properly it is expected that economic growth will continue to rise in line with the transparency of corporate management a better and will benefit many parties. Detection possibility of earnings management in the financial statements, examined through the use of estimates of total accruals. Total accruals consist of nondiscretionary accrual and discretionary accruals. Earnings management occurs because of opposition from various interested parties on the financial statement information, which interested parties on financial statements information that is internal and external parties. Conflicts of interest that occurs is minimized by a mechanism that is capable of aligning the interests of external and internal parties. Agency theory suggests that earnings management issues can be eliminated with the supervision of their own through good corporate governance.<br /><br />Keywords: corporate governance, discretionary accrual<br /><br />

Impact of Corporate Governance Mechanism in Mitigating Creative Accounting Practice of Listed Conglomerate Companies in Nigeria

Asian Journal of Economics Business and Accounting ◽

10.9734/ajeba/2021/v21i630389 ◽

2021 ◽

pp. 39-50

Author(s):

Abdulrahman Bala Sani ◽

Ruth Oluwayemisi Owoade

Keyword(s):

Corporate Governance ◽

Audit Committee ◽

Board Independence ◽

Managerial Ownership ◽

Governance Mechanism ◽

Board Size ◽

Accounting Practice ◽

Creative Accounting ◽

This study examined the impact of corporate governance mechanism in mitigating creative accounting practice of listed conglomerate companies in Nigeria. The study used Secondary data obtained from the company’s annual reports and accounts for the period 2013 to 2020. The population of the study includes six conglomerate companies listed on the Nigeria Stock Exchange and the entire population was used for the study. The dependent variable creative accounting was measured using discretionary accruals as estimated by modified Jones model. The independent variable corporate governance mechanism was proxied by audit committee, board size, board independence, managerial ownership. Multiple regression technique was employed for the panel data analysis using Stata version 13 statistical tools. Findings of the study revealed that audit committee has negative significant impact on creative accounting practice. Managerial ownership has significant positive impact on creative accounting practice. Board size and board independence has no significant impact on creative accounting practice of listed conglomerate companies in Nigeria. The study concludes that good corporate governance have impact on creative accounting practice. Based on these findings, the study recommends that companies are to effectively apply good corporate governance mechanism. They should have an independent audit committee, so as to minimize creative accounting practice.

The Effect of Good Corporate Governance Mechanism On The Financial Performance of Banking Companies Listed In Stock Exchange Indonesia 2012-2016

JOURNAL OF APPLIED MANAGERIAL ACCOUNTING ◽

10.30871/jama.v3i2.1552 ◽

2019 ◽

Vol 3 (2) ◽

pp. 273-287

Author(s):

Desi Pipian Pujakusum

Keyword(s):

Corporate Governance ◽

Financial Performance ◽

Board Of Directors ◽

Audit Committee ◽

Stock Exchange ◽

Governance Mechanism ◽

Return On Assets ◽

The Board Of Directors ◽

This study aims to examine the effect of good corporate governance mechanism on the financial performance of banking companies listed on the Indonesian Stock Exchange 2012-2016 period. The corporate governance mechanism is proxied by the size of the board of directors, the size of the board of commissioners, audit committee size, the board of director's education, and the board of commissioner’s education. The company's financial performance is proxied by return on assets (ROA). Samples were taken by using purposive sampling. The total number of samples used in this study amounted to 180 research samples. This study was tested with SPSS 20 program. Data analysis technique used in this research is simple regression analysis. The results showed that the size of the board of directors, the size of the board of commissioners, and audit comitee size have a significant effect on return on assets. These three factors have a significant effect on return on assets, while the board of commissioners education and the board of director's education have no significant effect on return on assets.