Jurnal Bisnis dan Akuntansi
Vol 17 No 1 (2015): Jurnal Bisnis dan Akuntansi

The influence of audit committees’ characteristics on earnings quality: evidence from Indonesia

NELLIYANA NELLIYANA (STIE Trisakti)



Article Info

Publish Date
13 Apr 2018

Abstract

The objective of this research is to get empirical evidence audit committees’ characteristics: financial expertise, number of meetings, audit committees’ sizes that moderate the effects of unexpected earnings to cumulative abnormal return. This research also includes independent variables that theoretically influence the relation of unexpected earnings to cumulative abnormal return such as CEO stock ownerships, earnings persistence, market beta, percentage of reporting loss and discretionary accruals. The sample of this research is companies listed in Indonesia Stock Exchange (IDX) during year 2007 to 2009. This research uses 147 data with 49 companies selected per year. The analysis tools used in this research is multiple linear regression. The result shows that financial expertise, number of meetings, audit committees’ sizes and others variables altogether do not moderate the effects of unexpected earnings to cumulative abnormal return or earnings quality reported in financial report. It shows that investors in Indonesia do not consider the characteristics of audit committees in their investment decision making process and the characteristic of audit committees itself does not influence the quality of reported earnings.

Copyrights © 2015






Journal Info

Abbrev

JBA

Publisher

Subject

Economics, Econometrics & Finance

Description

Jurnal Bisnis dan Akuntansi is biannual publication issued in the month of June and December. Jurnal Bisnis dan Akuntansi is a scientific journal which prioritizes the publication of articles (research and non-research based) regarding to business and accounting issues that deal with social issues ...