Firm Characteristics and Financial Reporting Quality: A Case of Property and Real Estate Companies listed in Indonesian Stock Exchange
Abstract
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.
Keywords
Full Text:
PDFReferences
Adenugba, A. A., Ige, A. A., & Kesinro, O. R. (2016). Financial leverage and firms’ value: A study of selected firms in Nigeria European. Journal of Research and Reflection in Management Sciences, 4(1), 14–32.
Aderemi, A. K., Osarumwense, E. S., Kehide, A., & Egbide, B. (2016). Audit committee attributes and financial reporting quality in Nigerian quoted companies. International Business Management, 10(22), 5326–5335.
Agrawal, K., & Chatterjee, C. (2015). Earnings management and financial distress: Evidence from India. Global Business Review, 16(5S), 140S–154S.
Amertha, I. S. P., Ulupui, I. G. K. A., & Putri, I. G. A. M. A. D. (2014). Analysis of firm size, leverage, corporate governance on earnings management practices (Indonesian evidence). Journal of Economics, Business, and Accountancy Ventura, 17(2), 259–268.
Bajra, U., & Cadez, S. (2018). Audit committees and financial reporting quality: The 8th EU company law directive perspective. Economic Systems, 42, 151–163.
Ball, R., & Shivakumar, L. (2005). The role of accruals in asymmetrically timely gain and loss recognition. Journal of Accounting Research, 44(April), 207–242. Retrieved from https://pdfs.semanticscholar.org/eb48/630627f7c25a67769dd86d00f722498fc0b2.pdf
Basu, S. (1997). The conservatism principle and the asymmetric timeliness of earnings. Journal of Accounting and Economics, 24(1), 3–37. Retrieved from https://doi.org/10.1016/S0165-4101(97)00014-1
Beest, F. V, Braam, G., & Boelens, S. (2009). Quality of financial reporting: Measuring qualitative characteristics. NiCE Working Paper 09-108.
Darwis, H. (2009). Ukuran perusahaan, profitabilitas, dan financial leverage terhadap pengungkapan tanggung jawab sosial perusahaan high Profile di BEI. Jurnal Keuangan Dan Perbankan, 13(1), 52–61.
Dechow, P. M., & Dichev, I. D. (2002). The quality of accruals and earnings: The role of accrual estimation errors. The Accounting Review, 77, 33–59. https://doi.org/10.2139/ssrn.277231
Dioha, C., Ahmed, M. N., & Okpanachi, J. (2018). Effect of firm characteristics on profitability of listed consumer goods companies in Nigeria. Journal of Accounting, Finance and Auditing Studies, 4(2), 14–31.
Echobu, J., Okika, N. P., & Mailafia, L. (2017). Determinants of financial reporting quality: Evidence from listed agriculture and natural resouces firms in Nigeria. International Journal of Scientific Research in Social Sciences & Management Studies, 2(1), 66–82.
Gaynor, M., Andrea, S. K., Molly, M., & Teri, L. Y. (2016). Understanding the relation between financial reporting quality and audit quality. Auditing: A Journal of Practice and Theory, 35(4), 1–22.
Hassan, S. U., & Bello, A. (2013). Firm characteristics and financial reporting quality of listed manufacturing firms in Nigeria. International Journal of Accounting, Banking and Management, 1(6), 47–63.
Healy, P. M., & Wahlen, J. M. (1999). A review of the earnings management literature and its implications for standard setting. Accounting Horizons, 13(4), 365–383.
Hermuningsih, S. (2012). Pengaruh profitabilitas, size terhadap nilai perusahaan dengan struktur modal sebagai variabel intervening. Jurnal Siasat Bisnis, 16(2), 232–242. Retrieved from https://doi.org/10.21098/bemp.v16i2.440
Husnan, S. (2001). Manajemen keuangan teori dan penerapan (keputusan jangka pendek) (4th ed.). Yogyakarta: BPFE.
IASB. (2008). Exposure draft on an improved conceptual framework for financial reporting: The objective of financial reporting and qualitative characteristics of decision-useful financial reporting information London.
Jensen, M., & Meckling, W. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3, 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
Jonas, G. J. ., & Blanchet, E. (2000). Assessing quality of financial reporting. Accounting Horizons, 14(3), 353–363. Retrieved from https://doi.org/10.2308/acch.2000.14.3.353
Kasmir. (2013). Analisis laporan keuangan. Jakarta: Rajawali Pers.
Kholmi, M. (2010). Akuntabilitas dalam perspektif teori agensi. Ekonomika-Bisnis, 2(2), 357–370.
Kusumaningtyas, M., & Farida, D. N. (2015). Pengaruh kompetensi komite audit, aktivitas komite audit dan kepemilikan institusional terhadap manajemen laba. Jurnal Akuntansi Indonesia, 4(1), 66–82.
Lestari, K. C., & Wulandari, S. O. (2019). Pengaruh profitabilitas terhadap manajemen laba (studi kasus pada bank yang terdaftar di BEI tahun 2016-2018). Jurnal Akademi Akuntansi, 2(1), 20–35.
Mahboub, R. (2017). Main determinants of financial reporting quality in the lebanese banking sector. European Research Studies Journal, XX(4B), 706–726.
Martínez‐Ferrero, J., Garcia‐Sanchez, I. M., & Cuadrado-Ballesteros, B. (2013). Effect of financial reporting quality on sustainability information disclosure. Corporate Social Responsibility and Environmental Management, 22(1), 45–64.
Medyawati, H., & Dayanti, A. S. (2016). Pengaruh ukuran perusahaan terhadap manajemen laba: Analisis data panel. Jurnal Ekonomi Bisnis, 21(3), 142–152.
Olowokure, O. A., Tanko, M., & Nyor, T. (2016). Firm structural characteristics and financial reporting quality of listed deposit money Banks in Nigeria. International Business Research, 9(1), 106–122.
Prasasti, B., & Ardianto, J. (2011). Pengaruh mekanisme corporate governance terhadap manajemen laba (studi empiris pada perusahaan yang termasuk dalam indeks kompas 100 tahun 2008-2009. Ultima Accounting, 3(1), 46–65.
Putranto, A. D., & Darmawan, A. (2018). Pengaruh ukuran perusahaan, profitabilitas, leverage, dan nilai pasar terhadap harga saham. Jurnal Administrasi Bisnis, 56(1), 110–117.
Rochimawati. (2012). Analisis deskriminan audit delay pada industri keuangan di Bursa Efek Indonesia. Jurnal Akuntansi Dan Ekonomi, 1–5.
Sandy, K. F. (2017). BI: Sektor properti dorong perekonomian nasional. Retrieved May 21, 2019, from https://ekbis.sindonews.com/read/1233551/179/bi-sektor-properti-dorong-perekonomian-nasional-1503576786
Scott, A. J. (1997). The cultural economy of cities. International Journal of Urban and Regional Research, 21(2), 323–339. https://doi.org/10.1111/1468-2427.00075
Susanto, B., & Ramadhani, T. (2016). Faktor-faktor yang memengaruhi konservatisme. Jurnal Bisnis Dan Ekonomi, 23(2), 142–151.
Tang, T., Shindell, D., Samset, B. H., Boucher, O., Forster, P. M., Hodnebrog, Ø., … Takemura, T. (2018). Dynamical response of Mediterranean precipitation to greenhouse gases and aerosols. Atmospheric Chemistry and Physics, 18(11), 8439–8452. https://doi.org/10.5194/acp-18-8439-2018
Verdi, R. S. (2006). Financial reporting quality and investment efficiency. Working Paper. Retrieved from http://ssrn.com/abstract=930922
DOI: https://doi.org/10.24815/jaroe.v2i3.14849
Article Metrics
Abstract view : 0 timesPDF - 0 times
Refbacks
- There are currently no refbacks.
Published by:
Accounting Department
Economics and Business Faculty
Syiah Kuala University
Kopelma Darussalam, Banda Aceh, Indonesia - 23111
E-ISSN: 2621-1041
Journal of Accounting Research, Organization and Economics by Accounting Department of Economics and Business Faculty of Syiah Kuala University is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Based on a work at http://www.jurnal.unsyiah.ac.id/JAROE/index.