Antecedents of Disclosure on Internal Control and Earnings Management

• 발행기관: 한국유통과학회
• 저자명: Rudi ZULFIKAR Firda MILLATINA Mukhtar MUKHTAR Kurniasih Dwi ASTUTI Tubagus ISMAIL Meutia MEUTIA Edward FAZRI
• 간행물 정보: 『The Journal of Asian Finance, Economics and Business(JAFEB)』Vol. 8 No.3, 391~397쪽, 전체 7쪽
• 주제분류: 경제경영 > 경제학
• 파일형태: PDF
• 발행일자: 2021.03.30

영문 초록

This study examines the effect of independent commissioners and the Audit Committee on internal control disclosure and its implications for earnings management in the banking industry listed on the Indonesia Stock Exchange for the period 2016–2018. In this study, a purposive sampling technique was used, combined with two multiple regression analysis models. The final sample for this study comprised 30 companies over the three years of observation, such that there were 90 observations in total. This study indicates that independent commissioners, as measured by their composition, do not affect the disclosure of internal control. However, as measured by the number of members, the Audit Committee had a positive effect on internal control disclosures. This study also indicates that the disclosure of internal control as measured by the Internal Control Disclosure index affects reducing the negative practice of earnings management. This study proves that the Audit Committee’s role is very dominant in assisting the Board of Commissioners in supervising internal control. This has implications for reducing earnings management practices. However, the Independent Commissioner’s role in the Indonesian banking industry has not been optimal in carrying out the supervisory function in this study.

목차

1. Introduction

2. Literature Review

3. Methodology

4. Results and Discussion

5. Conclusions

References

키워드

Earnings Management Internal Control Disclosure Independent Commissioner Audit Committee