Corporate governance mechanisms and earnings quality: Is firm size a moderation variable?

Journal of Governance and Regulation

article

Badingatus Solikhah¹  Agus Wahyudin¹  Mamdouh Abdulaziz SalehAl-Faryan³  Nadia Novita Iranda¹  Ain Hajawiyah¹  Chia-Ming Sun² 

[1] Accounting Department, Universitas Negeri Semarang;National Yunlin University of Science & Technology;University of Portsmouth

关键词: Earning Quality;    Cash Flow;    Firm Size;    Audit Committee;    Independent Commissioner;    Institutional Ownership;    Managerial Ownership;    Corporate Governance;   

DOI  :  10.22495/jgrv11i1siart1

学科分类：社会科学、人文和艺术（综合）

来源: Virtus Interpress

【 摘 要 】

The main objective of this research is to analyze the influence of independent commissioner, audit committee, managerial ownership, and institutional ownership on earnings quality. This study also observes the role of a firm’s size as a moderating variable. Using specific considerations, the number of the sample is reduced to 20 out of 144 companies from manufacturing companies listed in the Indonesian Stock Exchange during 2013–2016. The data analysis in this research used moderating regression. The results show that managerial ownership affects positively toward quality of the earnings. The firm’s size has proven to be able to strengthen the influence of managerial ownership and institutional ownership on earnings quality. Overall, this study reveals that the implementation of good corporate governance has been obliged by the government, but the supervisory function has not been executed optimally so it is not fully able to affect earnings quality. The results of this study contribute to both investors and potential investors in investment decisions. This paper suggests considering managerial and institutional ownership and company size since the variable is proven to be able to improve earnings quality.

【 授权许可】

CC BY-NC