Board of Commissioners’s Characteristics (Size, Independence, Expertise) and Financial Reporting Quality

Media Kusumawardani; Desri Yanto

doi:10.24127/akuisisi.v19i1.1383

Board of Commissioners’s Characteristics (Size, Independence, Expertise) and Financial Reporting Quality

Media Kusumawardani, Desri Yanto

Abstract

The quality of financial reports is necessary for the users. Factors that can improve the quality of financial reports that can be proven true are things that need to be prioritized. So research is needed that can prove the factors involved. This study aims to test the board of commissioners as a party that has a role in a company. The board of commissioners is the party that supervises a company entity and ensures that the committee carries out audits. In this study, the board of commissioners becomes an independent variable seen from the size, independence, expertise with leverage control variables, audit quality, company size, company growth. The object of this research is a manufacturing company listed on the Sharia Securities List in 2018-2020. The sample used is 198 companies that filled the requirement. The sample collection method used a purposive sample. The type of data used is secondary data and the data processing tool uses SPSS. In this study, the Board of Commissioners (Size, Independence, Expertise) were not proven to influence the Quality of Financial Statements. While the control variables in this study showed a positive influence in addition to the leverage variable, namely audit quality, company size, and company growth. So it can be concluded that all hypotheses in this study were rejected. So based on the point of size, independence, and expertise of the board of commissioners in this study, it does not have a large enough role in determining the Quality of Financial Statements.

Keywords

Financial Reporting Quality ; Board Size; Board Independence; Board Expertise

Full Text:

PDF

References

Aifuwa, Hope Osayantin, and Kemebradikemor Embele. 2019. “Board Characteristics and Financial Reporting Quality.” Corporate Ownership and Control 5(1):30–49.

Al-Dmour, Ahmed Hani, Maysam Abbod, and Naim Salameh Al Qadi. 2018. “The Impact of the Quality of Financial Reporting on Non-Financial Business Performance and the Role of Organizations Demographic’ Attributes (Type, Size and Experience).” Academy of Accounting and Financial Studies Journal 22(1):1–18.

Almaqtari, Faozi A., Abdulwahid Abdullah Hashed, Mohd Shamim, and Waleed M. Al-Ahdal. 2020. “Impact of Corporate Governance Mechanisms on Financial Reporting Quality: A Study of Indian Gaap and Indian Accounting Standards.” Problems and Perspectives in Management 18(4):0–14.

Amah, Kalu Ogbonnaya, and Michael Chidiebere Ekwe. 2021. “Effect of Corporate Governance Structure and Financial Reporting Quality of Quoted Pharmaceutical Companies in Nigeria.” Management Dynamics in the Knowledge Economy 9(2):225–39.

Anastasia Chi-Chi (PhD), Onuorah, and Imene Oghenefegha Friday. 2016. “Corporate Governance and Financial Reporting Quality in Selected Nigerian Company.” Corporate Governance and Financial Reporting Quality in Selected Nigerian Company 2(3):7–16.

Al Azeez, Hosam Alden Riyadh, Eko Ganis Sukoharsono, Roekhudin, and Wuryan Andayani. 2019. “The Impact of Board Characteristics on Earnings Management in the International Oil and Gas Corporations.” Academy of Accounting and Financial Studies Journal 23(1):1–26.

Boonvut, Saratchanut. 2017. “The Quality Financial Statements of Small and Medium Enterprises Business (SME’s) in View of the Tax Auditor.” International Journal of Business and Economic Affairs 2(6):335–40.

Bravo, Francisco, and Nuria Reguera-Alvarado. 2017. “Do Independent Director’s Characteristics Influence Financial Reporting Quality?” Revista Espanola de Financiacion y Contabilidad.

Cahyani, Dewi Rina. 2020. “Akuntan Bandingkan Kasus Jiwasraya Dan Garuda Indonesia.” Retrieved (https://bisnis.tempo.co/read/1294680/akuntan-bandingkan-kasus-jiwasraya-dan-garuda-indonesia).

Cao, Jian, Feng Chen, and Julia L. Higgs. 2016. Late for a Very Important Date: Financial Reporting and Audit Implications of Late 10-K Filings. Vol. 21. Springer US.

Golmohammadi Shuraki, Mojtaba, Omid Pourheidari, and Masoud Azizkhani. 2020. “Accounting Comparability, Financial Reporting Quality and Audit Opinions: Evidence from Iran.” Asian Review of Accounting 29(1):42–60.

IAI. 2018. SAK Standar Akuntansi Keuangan. edited by Dewan Standar Akuntansi Keuangan Ikatan Akuntansi Indonesia. Jakarta.

Ilaboya, O. J., and O. Obaretin. 2015. “Board Characteristics and Firm Performance: Evidence from Nigerian Quoted Companies.” Academic Journal of Interdisciplinary Studies 4(1):283–90.

Kaawaase, Twaha Kigongo, and Catherine Nairuba. 2021. “Corporate Governance , Internal Audit Quality and Financial Reporting Quality of Financial Institutions.” Emerald Publishing Limited.

Khotimah, Husnul. 2021. “Kasus Enron Corporation, Etika Profesi Akuntansi Dan Stabilitas Ekonomi.” Retrieved November 27, 2021 (http://lppm.unpam.ac.id/2021/11/02/kasus-enron-corporation-etika-profesi-akuntansi-dan-stabilitas-ekonomi/).

Martínez-Ferrero, Jennifer. 2014. “Consequences of Financial Reporting Quality on Corporate Performance: Evidence at the International Level.” Estudios de Economía 41(1):49–88.

OJK. 2017. Penerapan Tata Kelola Perusahaan Efek Yang Melakukan Kegiatan Usaha Sebagai Penjamin Emisi Efek Dan Perantara Pedagang Efek. Nomor 57/POJK.04/2017. Jakarta.

Rajeevan, Shanmugavel, and Roshan Ajward. 2019. “Board Characteristics and Earnings Management in Sri Lanka.” Journal of Asian Business and Economic Studies 27(1):2–18.

Sugama, Daniel. 2021. “Analisis Kasus Audit Worldcom.” Retrieved November 27, 2021 (https://danielstephanus.wordpress.com/2021/04/12/analisis-kasus-audit-worldcom/).

Victor, Odu, and Onatuyeh Aruobogha Edwin. 2019. “Board Financial Expertise and Financial Reporting Quality : A Comparative Study of Nigerian and Malaysian Banks.” Indian Journal of Applied Research 9(5):6–12.

DOI: 10.24127/akuisisi.v19i1.1383

DOI (PDF): https://doi.org/10.24127/akuisisi.v19i1.1383.g550