Relationship Analysis of Corporate Governance Mechanisms, Audit Fees, and Financial Report Quality in Indonesia
-
2018-08-08 https://doi.org/10.14419/ijet.v7i3.21.17099 -
Corporate Governance Mechanisms, Audit fees, Financial Reporting Quality -
Abstract
The aim of this study is to examine the effect of corporate governance mechanisms on the financial reporting quality and examine the effect of corporate governance mechanisms on audit fees. In addition, this study also aimed to examine the effect of audit fees on the financial report quality. The sample in this study is manufacturing companies listed on the Indonesia Stock Exchange (BEI) in the period 2014 and 2015. The total sample is 144 companies. Data analysis was performed using Partial Least Squares (PLS). The results of this study show that the proportion of independent commissioners and audit committee from the board of commissioners and audit committee negatively affect audit fees; the proportion of independent commissioners and audit committee from the board of commissioners, audit committee, and board of directors negatively affect audit fees; the proportion of independent commissioners and audit committee from the board of commissioners and audit committee do not positively affect the financial report quality; the proportion of independent commissioners and audit committee from the board of commissioners, audit committee, and board of directors do not positively affect the financial report quality; and audit fees negatively affects the financial report quality.
Â
 -
References
- style='mso-bidi-font-weight:normal'>
- style='mso-element:field-begin'>
- style='mso-spacerun:yes'> ADDIN EN.REFLIST
- field-separator'>[1] Gibbins M. Evidence from Auditors about Managers' and Auditors' Earnings Management Decisions: Discussion. 2002;77(2002):203-11.
[2] Francis JR, Wang D. The Joint Effect of Investor Protection and Big 4 Audits on Earnings Quality around the World. Contemporary Accounting Research. 2008;25(1):157-91.
[3] Defond ML, Wong TJ, Li S. The impact of improved auditor independence on audit market concentration in China. Journal of Accounting and Economics. 1999;28(3):269-305.
[4] Chung H, Kallapur S. Client Importance, Nonaudit Services, and Abnormal Accruals. Accounting Review. 2003;78(4):931-55.
[5] Okike E. Management of crisis: The response of the auditing profession in Nigeria to the challenge to its legitimacy. Accounting, Auditing & Accountability Journal. 2004;17:705-30.
[6] DeAngelo LE. Auditor size and audit quality. Journal of Accounting and Economics. 1981;3(3):183-99.
[7] Ahunwan B, editor Corporate governance in Nigeria2002 2002.
[8] Scott WR. Financial Accounting Theory2006. 546- p.
[9] Darmawati D. Corporate Governance dan Manajemen Laba: Suatu Studi Empiris. Jurnal Bisnis dan Akuntansi. 2003;5(1):47-68.
[10] Herawaty N. Pengaruh Pengendalian Intern dan Lamanya Waktu Audit terhadap Fee Audit (Studi Kasus pada KAP Kota Jambi dan Palembang). Jurnal Penelitian Universitas Jambi Seri Humaniora. 2011;13(1):07-12.
[11] Neville M. The role of boards in small and medium sized firms. CORPORATE GOVERNANCE. 2011;11(5):527-40.
[12] Carcello JV, Hermanson DR, Neal TL, Riley Jr Ra. Board Characteristics and Audit Fees. Contemporary Accounting Research. 2002;19(3):365-84.
[13] Abbott LJ, Parker S, Peters GF, Rama DV. Corporate Governance, Audit Quality, and the Sarbanes-Oxley Act: Evidence from Internal Audit Outsourcing. The Accounting Review. 2007;82(4):803-35.
[14] Akuntansi JE, Ekonomi-Universitas F, Petra K, Ary T, Dosen G, Ekonomi F, et al. Earnings Management: Suatu Telaah Pustaka. Jurnal Akuntansi & Keuangan. 2000;2(2):104-15.
[15] Jensen MC, Meckling WH. Theory of the Firm : Managerial Behavior , Agency Costs and Ownership Structure Theory of the Firm : Managerial Behavior , Agency Costs and Ownership Structure. Journal of Financial Economics. 1976;3(4):305-60.
[16] Sulistyanto SH. Manajemen Laba: Teori dan Model Empiris. Jakarta: Grasindo; 2008.
[17] Healy PM, Wahlen JM. A review of the earnings management literature and its implications for standard setting. 1999. p. 365-83.
[18] Srinidhi BN, Gul FA. The Differential Effects of Auditors' Nonaudit and Audit Fees on Accrual Quality. Contemporary Accounting Research. 2007;24(2):595-629.
[19] Hoitash R, Markelevich A, Barragato Ca. Auditor fees and audit quality. Managerial Auditing Journal. 2007;22(8):761-86.
[20] Gupta N. Partial privatization and firm performance. Journal of Finance. 2005;60(2):987-1015.
[21] Cadbury A. Cadbury Report: The Financial Aspects of Corporate Governance. 1992 0 85258 913 1.
[22] FCGI. Corporate Governance: Tata Kelola Perusahaan. 3 ed. Jakarta2001. 100- p.
[23] Klein A. Audit committee, board of director characteristics, and earnings management. Journal of Accounting and Economics. 2002;33(3):375-400.
[24] Collier P, Gregory A. Audit committee effectiveness and the audit fee. European Accounting Review. 1996;5(2):177-98.
[25] Committee BR. Report of the Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit Committee. 1 ed. New York: NYSE and NASD; 1999. 100- p.
[26] Ojk IFC. The indonesia corporate governance manual. Jakarta: OJK dan IFC; 2014. 100- p.
[27] Antonia E. Analisis Pengaruh Reputasi Auditor, Proporsi Dewan Komisaris Independen, Leverage, Kepemilikan Manajerial dan Proporsi Komite Audit Independen terhadap Manajemen Laba (Studi pada Perusahaan Manufaktur di Bursa Efek Indonesia Periode 2004 – 2006). Semarang: Universitas Diponegoro; 2008.
[28] Mayangsari S. Analisis Pengaruh Independensi, Kualitas Audit, Serta Mekanisme Corporate Governance Terhadap Integritas Laporan Keuangan. Simposium Nasional Akuntansi VI, Surabaya. 2003:1255-69.
[29] Frankel RM, Johnson MF, Nelson KK, editors. The relation between auditors' fees for nonaudit services and earnings management2002 2002.
[30] Ashbaugh H, LaFond R, Mayhew BW. Do nonaudit services compromise auditor independence? Further evidence. Accounting Review. 2003;78(3):611-39.
[31] Choi JH, Kim JB, Zang Y. Do abnormally high audit fees impair audit quality? Auditing. 2010;29(2):115-40.
[32] Caneghem TV. Audit pricing and the Big4 fee premium: evidence from Belgium. Managerial Auditing Journal. 2010;25(2):122-39.
[33] Hay D, Knechel WR, Ling H. Evidence on the Impact of Internal Control and Corporate Governance on Audit Fees. International Journal of Auditing. 2008;12:9-24.
[34] Ghozali I. Multivariate dengan Program SPSS. 1 ed. Semarang: Badan Penelitian Universitas Diponegoro; 2005.
[35] Hussein AS. Metode Kuantitatif Untuk Riset Manajemen. 1 ed. Surabaya: Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya; 2015.
[36] Jogiyanto. Analisis dan Desain. Yogyakarta: Andi. 2009;53:160-.
[37] Cooper D, Schindler P. Business Research Methods. Social Research. 2014(12th Edition):792-.
[38] AAA. Commentary: SEC Auditor Independence Requirements. Accounting Horizons. 2001;15(4):373-86.
- style='font-size:8.0pt;font-family:"Times New Roman","serif";mso-fareast-font-family:
- Batang;mso-ansi-language:EN-US;mso-fareast-language:KO;mso-bidi-language:AR-SA'>
- style='mso-element:field-end'>
-
Downloads
-
How to Cite
Hapsoro, D., & ., . (2018). Relationship Analysis of Corporate Governance Mechanisms, Audit Fees, and Financial Report Quality in Indonesia. International Journal of Engineering & Technology, 7(3.21), 73-81. https://doi.org/10.14419/ijet.v7i3.21.17099Received date: 2018-08-08
Accepted date: 2018-08-08
Published date: 2018-08-08