Determinant of Earnings Quality: IFRS Convergence, Accounting Disclosure and Audit Committee in Indonesia

Diyah Pujiati, Supriyati and Riski Aprillia Nita
Additional contact information
Diyah Pujiati: Accounting Department, Hayam Wuruk Perbanas University, Surabaya, Indonesia
Supriyati: Accounting Department, Hayam Wuruk Perbanas University, Surabaya, Indonesia
Riski Aprillia Nita: Accounting Department, Hayam Wuruk Perbanas University, Surabaya, Indonesia

International Journal of Finance & Banking Studies, 2022, vol. 11, issue 1, 177-189

Abstract: The quality of earnings indicates the current or future capability of the company to support the decisions made by managing board and other stakeholders. This research have to goal to examine the determinant of earnings quality in Indonesia, including: IFRS convergence, accounting disclosures, and audit committees. Data were acquired from official website in period of 2016-2018 and number of data was 212 observation data. Method of analysis involved regression test and classical assumption test. Result of research showed that the audit committee had a positive effect on earnings quality, while the convergence of IFRS and accounting disclosure cannot affect earnings quality. Research model was tested using control variables, respectively leverage, liquidity and company size. The test found that leverage is the only control variable that affects earnings quality. Information in financial statements is not the most important information to investors. Audit committee and creditor contribution play more important role in decisions regarding earnings quality.

Keywords: Earnings quality; IFRS; Accounting disclosure; Audit committee (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/1520/1178 (application/pdf)
https://www.ssbfnet.com/ojs/index.php/ijfbs/article/view/1520 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rbs:ijfbss:v:11:y:2022:i:1:p:177-189

Access Statistics for this article

International Journal of Finance & Banking Studies is currently edited by Prof.Dr.Hasan Dincer

More articles in International Journal of Finance & Banking Studies from Center for the Strategic Studies in Business and Finance IJFBS Editorial Office, IMU, School of Business. Contact information at EDIRC.
Bibliographic data for series maintained by Hasan Dincer ().