The effect of board of commissioners, audit committee, and stock ownership concentration on audit report lag of banking companies in Indonesia Stock Exchange (original) (raw)
Related papers
Board Characteristics, Audit Committee and Audit Quality: The Case of Indonesia
International journal of Economics and Business Administration, 2017
The purpose of this research is to examine the relationship between board size, number of non-executive directors, the financial expertise of the non-executive directors representing the audit committee and the audit quality. Data from non-financial firms listed in the Indonesian Stock Exchange have been used. To achieve the research objectives, we have used the logit regression. The data of 121 listed firms in a five-year period from 2012 to 2016 is collected from the printed audit accounts available on companies' websites. The emergence of corporate governance phenomena has brought upon many structural changes in firms' governance structure such as the audit committee role and the audit quality. The second decade which starts with the warmth of subprime crisis has seen a significant development in the code of corporate governance. The role of the audit committee is now significant and being recognized as the solution of prevention of internal fraud. The findings of the study have shown that in non-financial firms listed in the Indonesian Stock Exchange audit committee and board characteristics have significant effect on audit quality. This study will be helpful for students, auditors, policymakers and researchers to understand the impact of corporate governance in audit quality.
Applied Finance and Accounting, 2015
This study examines the effect of ownership characteristics and activities of the audit committee to audit fee. This study also uses control variables which include free cash flow, liquidity ratios, profitability ratios, solvency ratios, firm size, market -to-book value of equity, and audits quality of manufacture companies in Indonesia Stock Exchange in the year 2010 - 2012 are used as the population in this study. Data collection method used was purposive sampling. The statistical methods used to analyze the data are the multiple linear regression and results obtained indicate that managerial ownership, audit committee activity, firm size, liquidity ratios, profitability ratios affect audit fees. Meanwhile, institutional ownership, free cash flow, solvency ratio, and market -to-book value of equity do not affect the audit fees significantly.
2015
The objective of this research is to find the corporate governance mechanism and Auditors Characteristic to influence the occurrence of the restated financial statement. That factors influence the financial stement quality. The restated financial statement has indicated that the financial statement quality previously is down grade. Hence, proxy of decreasing financial reporting quality is measured by through occurrence of restated financial reporting. The result of this research have found that the number of audit committee contribute to influence this occurrence, but for independent Commissioners can not depict clearly. For auditors characteristic does not have a relationship to occurrence of restated financia l reporting, because not-big four can influence the quality of financial statement than the big four performance. This result does not support premise that big four have good performance than not big-four.
The Effect of Corporate Governanceon Audit Report Timeliness in Indonesia
Jurnal Akuntansi Bisnis, 2018
Financial Statements could be useful for the readers to make a decision. In order to rely on Financial Statements to make a decision, the Financial Statements should be relevant. To enhance the relevance of the Financial Statements, the Financial Statements should be published in a timely manner. This research utilizes the data of listed companies on the Indonesia Stock Exchange for period 2013 – 2016. The purpose of this research is to determine the effect of corporate (internal and external indicators) on audit report timeliness. The methodology used in this research is multiple linear regression. In conclusion, the result of this research suggested that board of commissionersindependence, audit committee size, audit committee meeting, firm performance, auditor type, and audit opinion have significant association with audit report timeliness. Meanwhile, audit committee qualification and audit tenure do not have significant association with audit report timeliness. In addition, the...
2018
This research examines the effects of the independent audit committee on the relationship between managerial ownership and independent board member on audit quality in the Indonesian listed banks. Primarily, the study examines the direct relationship of managerial ownership, independent board member and independent audit committee on the audit quality of listed banks in the Indonesian Stock Exchange. Also, the current study explores the mediating effect, indirect effect, of the independent audit committee on the relationship between managerial ownership, independent board member, and audit quality in the listed banks in Indonesia. The results show that the independent board member has a significant impact on the independent audit committee and the audit quality. The study reveals that managerial ownership does not influence audit quality. The adoption of the independent audit committee with a long tenure of years can be potentially risky and less creative. As a result, their oversig...
The Influence of Good Corporate Governance Mechanism to Bank's Performance in Indonesia
2017
The purpose of this research is to examine the influence of good corporate governance mechanism about earnings management in companies listed in Indonesian Stock Exchange during 2006 to 2010. The independent variables include the size of commissioner board, independent commissioner board percentage, size of audit committee, and commissioner meeting frequency. The dependent variable is earnings management which is measured by discretionary revenue model (Stubben, 2010). Size of company is used as the control variable in this research. The population of this research is 465 samples from companies listed at Indonesian Stock Exchange during 2006 to 2010. The sampling method used in this research is purposive sampling method. In addition, the data analysis method used is regression analysis and descriptive statistics. The result of this research indicates that the mechanism of good corporate governance which is represented by the size of commissioner board, independent commissioner board percentage, size of audit committee, and commissioner meeting frequency do not have any significant impact on earnings management. However, the result shows that company size gave positive influence toward earning management.
International Journal of Contemporary Accounting, 2020
It has never been thoroughly investigated whether the existence of the Audit Committee on the SOE board of commissioners is truly as beneficial as expected. Based on research that has been done, there is still a diversity of opinions regarding the effect of audit committee characteristics on company performance. The purpose of this study is to study whether audit committee size and number of audit committee meetings affect company performance. The grand theory of this research is agency theory or agency theory and corporate governance. This research uses quantitative research methods. Data processing is performed using eviews 9. The unit of analysis is the company. The sample is 20 (twenty) SOEs registered on the Indonesia Stock Exchange from 2013 to 2018. The sample must also be BUMN that has a complete Audit Committee report. The results showed that the number of chairpersons and members of the audit committee had a positive effect on company performance, the number of audit commi...
2016
Audit quality has become an important aspect in recent year. A reliable audit report will be a very useful information for various parties in order to provide assurance that the financial statements presented in accordance with applied accounting standards. The purpose of this study is to investigate the effects of managerial ownership, institutional ownership and company size on audit quality. At the same time this study also to investigate the effect of managerial ownership and institutional ownership on company size. Audit quality proxied by going-concern audit opinion. The research used partial least square/ variance based statistical method, with descriptive analitical research method. The research found that the value of r square for company size was 0.125 (weak) and the value of r square for audit quality was 0.073 (weak). With a significant level = 5%, it was found that company size has a significant effect on audit quality, institutional ownership did not have a significant...
Research in World Economy
Audit Report Lag (ARL) the completion of the audit that the length of time is measured from the date of closing of the financial year until the issuance of the audit report signed by the auditor. Benefits of the financial statements will be reduced if the report is not available on time. This study examines the Good Corporate Governance (GCG) mecanism and eksternal auditor that affect ARL including the board of ditectors, independent board of ditectors, audit committee and the external auditors and regulatory pressures. This study sampled kompas 100 companies in Indonesia Stock Exchange, with a sample of 94. This study was measured by using a Moderated regression analysis. These results indicate that Partially, the board of directors, independent board of directors have a significant effect on ARL before and after uses moderating variabel legal pressure, and the audit committe, external auditors have not a significant effect on ARL. Regulatory pressures plays a role as a moderator v...
Objective -This paper aims to obtain empirical evidence about the influence of specialized auditors, audit tenure, audit committee, board independence, ownership concentration, and auditor quality on audit report lag in Indonesian manufacturing firms. Methodology/Technique -The population is all manufacturing companies listed on the Indonesia Stock Exchange between 2010 and 2016. Multiple linear regressions was used as the data analysis method. Finding -The results of this research show that specialized auditors, board independence, ownership concentration and auditor quality all have an influence on audit report lag. Meanwhile, audit tenure and audit committee do not have an influence on audit report lag. Novelty -Specialized auditors will provide better performance than non-specialized auditors. Specialized auditors will apply more appropriate planning and monitoring on the audit procedure. Specialized auditors need longer time to audit financial statements, which effects audit report lag. The presence of an independent board requires higher quality financial statements. Thus, the auditor needs to put more effort into the verification process of financial statements. The largest shareholders tend to be committed and responsible to the company's reputation. Managers will demand the audit report lag in a timely manner, in order to maintain the trust and satisfaction of the company's largest shareholders. Type of Paper: Empirical.