Earnings Quality on Pre vs Post Audit Report: Evidence from Banking Industry in Indonesia
Earnings Quality on Pre vs Post Audit Report: Evidence from Banking Industry in Indonesia
Author(s): Nadia Klarita RAHAYU, Iman Harymawan, Mohammad NASIHSubject(s): Economy, National Economy, Business Economy / Management, Financial Markets
Published by: ASERS Publishing
Keywords: audit adjustment; earnings quality; accrual quality; earnings distribution around zero;
Summary/Abstract: The aim of this research is to examine and analyze the association between audit adjustment and earnings quality. Samples used in this research are banking companies listed on the Indonesia Stock Exchange during the period 2012-2016, a total of 358 samples from 42 companies. This research examined the effect of audit adjustment on earnings quality with a focus on banking companies in Indonesia and measurements that were adjusted to the nature of banking companies. The analysis of this research employs Ordinary Least Square Regression, and T-test processed with STATA 14 software. This study finds that audit adjustment helps to reduce earnings management. The result indicates that audit adjustment has an impact on earnings quality in highly regulated industry, especially in the banking industry.
Journal: Journal of Applied Economic Sciences (JAES)
- Issue Year: XIV/2019
- Issue No: 63
- Page Range: 207-218
- Page Count: 12
- Language: English