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AUDIT COMMITTEE CHARACTERISTICS AND AUDIT-EARNINGS QUALITY: EMPIRICAL EVIDENCE OF THE COMPANY WITH CONCENTRATED OWNERSHIP
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| Author | AMINUL AMIN (Tim: Ketua) |
| ID | 202.710.169 |
| Published Date | 20-12-2017 |
Abstract
Audit Committee Characteristics and Audit Earnings Quality: Empirical Evidence of The Company with Concentrated Ownership 1) Aminul Amin 2) Niki Lukviarman 3) Djoko Suhardjanto 4) Erna Setiany Abstract This study examined the effect of board characteristics on earnings quality moderated by audit quality on compenies with concentrated ownership. Board, in this study, referred to an audit committee that assist the board of commissioners to monitor the earnings report. Moderating regression analysis was used in this study to examine the impact of ownership concentration on the earnings quality monitoring model. The examination was conducted on sub-samples based on the level of ownership concentrations, i.e. 10, 20, 50, 80, 90 %. This study four characteristics of the audit committee that influence the earnings quality. Three of them (independence, expertise and aize) had positive effect; the other one (meeting) gave negative effect on earnings quality. Audit quality moderated the effect of audit committee characteristics on earnings quality, except for expertice (accounting and finance). The impact of the ownership concentration level increases as the concentrattion escalated from 10 to 80 %, but then weakened 1t 90 % level. The study revealed the debilitating limits of the concentration monitoring. Keyword: Board characteristics, ownership concentration , audit quality, earnings qual;ity.