scholarly journals Financial Reporting Quality and Investment Efficiency: Evidence from Indonesian Stock Market

2021 ◽  
Vol 66 (2) ◽  
pp. 112
Author(s):  
Hanif Putra Ardianto ◽  
Iman Harymawan ◽  
Yuanita Intan Paramitasari ◽  
Mohammad Nasih
Keyword(s):  
Stock Market ◽  
Financial Reporting ◽  
Significant Relationship ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Investment Efficiency ◽  
Investment Management ◽  
The Impact ◽  
A Company

This study aims to analyze the impact of financial reporting quality on the investment efficiency of a company. The study uses 994 observations from companies listed on the Indonesia Stock Exchange (IDX) in three periods from 2013 to 2015. The findings suggest that higher financial reporting quality has a positive and significant relationship with investment efficiency. Furthermore, the tests were conducted on groups of companies experiencing underinvestment and overinvestment. It was found that higher financial reporting quality had a negative and significant relationship with companies experiencing overinvestment. The findings provide implications for investors in assessing investment management carried out by company.

Financial reporting quality, family ownership, and investment efficiency

2019 ◽  
Vol 45 (4) ◽  
pp. 513-535 ◽  
Author(s):  
Faisal Shahzad ◽  
Ijaz Ur Rehman ◽  
Sisira Colombage ◽  
Faisal Nawaz
Keyword(s):  
Financial Reporting ◽  
Family Firms ◽  
Emerging Market ◽  
Reporting Quality ◽  
Least Square ◽  
Financial Reporting Quality ◽  
Family Ownership ◽  
Investment Efficiency ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to empirically investigate the impact of two monitoring mechanisms: family ownership (FO) and financial reporting quality (FRQ) on investment efficiency (IE) over the period of 2007–2014 for listed firms on the Pakistan Stock Exchange. Design/methodology/approach The authors employ two-dimensional pooled OLS cluster at the firm and year level, two-stage least square regression and feasible generalized lease square regression regression methods. Findings The findings suggest that higher FRQ and FO are associated with higher IE. Further, the authors report that higher FRQ and FO mitigate over- and under-investment. The impact of FRQ on IE is stronger (weaker) for family-controlled businesses. The results for these particular estimates are robust for alternative estimation techniques and measures of FRQ and FO. Originality/value The study draws on both agency and behavioral agency theories and therefore contributes to the literature in the following ways. First, the authors examine a relationship between FRQ and IE. Second, the authors test the impact of FO on IE. Third, the authors test the moderating impact of FO on the relationship between FRQ and the IE of family and non-family firms in relatively less regulated emerging market.

scholarly journals Pengaruh Kualitas Pelaporan Keuangan Dan Sustainability Reporting Pada Efisiensi Investasi

2019 ◽  
pp. 188
Author(s):  
Ni Putu Lisna Vitriani ◽  
I. G. A. N. Budiasih
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Sustainability Reporting ◽  
Sampling Technique ◽  
Total Sample ◽  
Financial Reporting Quality ◽  
Investment Efficiency ◽  
Analysis Technique

The purpose of this study is to obtain empirical evidence regarding the effec of financial reporting quality and Sustainability Reporting on investment efficiency. This research was conducted on all non-financial companies listed on the Indonesia Stock Exchange in 2015-2017. The sampling technique used in this study was a purposive sampling. The samples taken were 16 companies with a total sample observation of 48 in 3 years. The data analysis technique used is Multiple Linear Regression. Based on the results of the study it is known that the higher the financial reporting quality of a company, the higher the level of efficiency of the company's investment and it is known that Sustainability Reporting has no effect on the efficiency of the company's investment. The results of this study are the practice of stakeholder theory and agency theory carried out by the company to maintain the long-term operational sustainability of the company. Keywords: Financial reporting quality, Sustainability Reporting, investment efficiency.

scholarly journals Firm Characteristics and Financial Reporting Quality: A Case of Property and Real Estate Companies listed in Indonesian Stock Exchange

2020 ◽  
Vol 2 (3) ◽  
pp. 193-202
Author(s):  
Cut Widy Aulia Putri ◽  
Mirna Indriani
Keyword(s):  
Real Estate ◽  
Multiple Regression ◽  
Financial Reporting ◽  
Firm Size ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Firm Characteristics ◽  
The Impact

Objective – This study aims to investigate the impact of firm characteristics, namely leverage, profitability, and firm size, on financial reporting quality as measured by discretionary accruals.Design/methodology – This sample of this study is Property and Real Estate companies listed in the Indonesian Stock Exchange (IDX) for the period of 2015 to 2017. In total, there are 36 firms chosen as the samples for this study or 108 observations. The data was analyzed using the multiple regression method.Results – This study demonstrates that the leverage and profitability have significant impact on financial reporting quality, while firm size has no significant impact on financial reporting quality.

scholarly journals The Impact of Audit Committee Performance and Composition on Financial Reporting Quality in Jordan

2021 ◽  
Vol 12 (3) ◽  
pp. 55
Author(s):  
Qasim Ahmad Alawaqleh ◽  
Nashat Almasri
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Audit Committee ◽  
Work Performance ◽  
Stock Exchange ◽  
Internal Audit ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Governance System ◽  
The Impact

The corporate governance literature indicates efforts to investigate the role of the audit committee (AC) in improving the financial reporting quality (FRQ) after the emergence of financial scandals in many countries in the world, inclusive Jordan. To date, empirical findings are inconclusive enough to address all audit committee characteristics regarding its competency and responsibilities by employing a questionnaire to collect data about this relationship. Thus, this study measures the correlation between AC (performance and composition) and FRQ of manufacturing corporations registered on the Amman Stock Exchange (ASE). To test this impact empirically, the target population was financial managers, audit committee members, and internal audit managers who are working in manufacturing corporations listed on the (ASE). According to the coefficient (β), the independent variables (Audit Committee Performance and Audit Committee Composition influence the dependent variable FRQ. This research recommends that firms enhance the audit committee work performance and composition to ensure audit committee members effectively enhance the FRQ audit committee is a vital mechanism of the firm's corporate governance system.

The impact of corporate governance and IFRS on the relationship between financial reporting quality and investment efficiency in a continental accounting system

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Asma Houcine ◽  
Mouna Zitouni ◽  
Samir Srairi
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Investment Efficiency ◽  
Accounting System ◽  
Governance Mechanism ◽  
Content Type ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this paper is to investigate whether Financial Reporting Quality (FRQ), Corporate Governance and IFRS affect investment efficiency of French listed companies.Design/methodology/approachBased on a sample of 125 French firms listed on the CAC All Tradable index between 2008 and 2017, the study uses Feasible Generalized Least Squares (FGLS) regressions to examine the relationship between FRQ and firms' investment efficiency.FindingsThe findings show that FRQ plays a role in reducing overinvestment and does not affect underinvestment, suggesting that in a code-law country, informal and personal relationships tend to replace the role of financial reports in mitigating information asymmetry. The results also reveal that the relationship between FRQ and investment efficiency increases with better corporate governance and with the implementation of IFRS. However, the results provide no evidence between incentives to minimize profits for tax purposes and firms' underinvestment and continues to be negative for overinvesting companies that have more incentives to manage their earnings for tax purposes.Research limitations/implicationsOur study has some limitations. First, we only examine listed firms, so the results cannot be generalized to unlisted companies that represent the vast majority of French economic activity. Second, this research does not distinguish between government companies and private companies. The two types of companies have different governance mechanisms, financial reporting, disclosure environment and concentration of ownership.Practical implicationsThis study suggests that in a code-law country with weak investor protection, FRQ acts as a governance mechanism by mitigating asymmetric information and improving firms' investment decisions.Originality/valueThe relationship between FRQ and investment efficiency has been widely examined for companies in “common law” countries. This study extends the scarce evidence of this relation to companies in a code-law country. It also builds on previous research by introducing new factors never discussed before that could change this relationship, namely corporate governance, IFRS implementation and tax purposes.

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