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Journal : annals of human resource management research

Determinants of Financial Reporting Quality Mediated in the Prevention of Fraudulent Financial Reporting and Firm Size as a Moderator Ade Onny Siagian; Adler Haymans Manurung; Tri Widyastuti; Wastam Wahyu Hidayat
Annals of Human Resource Management Research Vol. 6 No. 1 (2026): March
Publisher : Goodwood Publishing

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35912/ahrmr.v6i1.3340

Abstract

Purpose: This study examines the effects of good corporate governance, internal audit function effectiveness, organizational culture, and information technology innovation on the quality of financial reporting, with the prevention of fraudulent financial reporting as a mediator. Additionally, it investigates the role of firm size as a moderating variable. Research Methodology: A survey method was used to gather data from the finance director/general manager, audit committee, internal audit unit manager (SPI), and accounting manager/finance manager at a state-owned enterprise (BUMN). Data analysis was conducted using a Structural Equation Model (SEM) with a Partial Least Squares (PLS) approach. Results: This study found that good corporate governance, internal audit effectiveness, organizational culture, and information technology innovation positively affect the prevention of fraudulent financial reporting. Good corporate governance, organizational culture, and IT innovation also improve financial reporting quality. However, internal audit effectiveness does not directly impact financial reporting quality. Firm size strengthens the positive relationship between governance mechanisms and financial reporting quality, both directly and through fraudulent financial reporting prevention. Conclusions: This study concludes that good corporate governance, internal audit effectiveness, organizational culture, and IT innovation are critical for enhancing financial reporting quality and preventing fraud. Firm size moderates the relationship, thereby amplifying the impact of these factors. Limitations: This study is limited to state-owned enterprises (BUMNs) and relies on self-reported data, which may introduce bias. Contributions: This research contributes insights into improving financial reporting practices by highlighting the roles of governance and organizational factors.
Co-Authors Ade Onny Siagian Adelina Suryati Adelina Suryati Adelina Suryati Adi Wibowo Noer Fikri Adler Haymans Manurung Adler Manurung Amalia, Dinda Ari Sulistyowati Arigawati, Desy Aulia Pramesti Bukhari, Eri Bungaran Saing, Bungaran Cahyadi Husadha Damayanti, Endah Suci Desy Pri Cahaya Sibarani Devi Fitriani Dharmanto, Agus Dian Sudiantini Difa Mulki Sabila Dinda Amalia Elia Rossa Endah Prawesti Ningrum Ery Teguh Prasetyo Ery Teguh Prasetyo Ery Teguh Prasetyo Ery Teguh Prasetyo Ery Teguh Prasetyo Eva Yanis Lafione Fachrian, Zian Fahmi Kamal Faizal Faizal, Faizal Fikri , Adi Wibowo Noer Habib Musthafa Hadianto, Handini Pratami Handini Pratami Hadianto Hapzi Ali Idel Eprianto Istianingsih Sastrodiharjo, Istianingsih Jihan Salsabilah Josua Panatap Soehaditama Jumawan, Jumawan Kardinah Indrianna Meutia Kardinah Indrianna Meutia Khaerunisa Nurfebrianti Lestari, Ekha M. Jhonni Sinaga Marundha, Amor Maya Tika Zulkarnain Muhamad Cikhal Anwar Nanin Pattingalloang Narpati, Bintang Nera Marinda Machdar Novita Wahyu Setyawati Nugroho Pratomo, Wahyu Nur Aini Sugiana Nurfebrianti, Khaerunisa Nurhafifah Prayogo, Sulung Anom Primadi Candra Susanto Pugo Bayu Prabowo Rachmat Pramukty Rely, Gilbert Renwarin, Joseph M J Rianto, Muhammad Richo Ridwan Ridwan Robertus Suraji Rony, Zahara Tussoleha Rorim Panday Rosma Titis Hapsari Rotua Sri Rejeki Sinaga Saputro, Firdaus Hindra Hadi Sari, Rycha Kuwara Soehardi Soehardi Sugeng Sismayadi SUGENG SUROSO, SUGENG Sumaryono Sumaryono Supardi Supardi Suryati, Adelina Tamam Zaidan Rizqullah Tri Widyastuti Tri Widyastuti Untari, Dhian Tyas Widi Winarso Widi Winarso, Widi Widjanarko , Wirawan Wijayanti, Murti Wirawan Widjanarko Wirawan Widjanarko Yayan Hendayana Yulianah Yulianah Yuniati, Triana Zen, Agustian