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<![CDATA[LOW AUDIT QUALITY: CLIENT COMPLEXITY AS MODERATING VARIABLE, PRE- AND AT THE PANDEMIC COVID-19 PERIOD ]]>
<![CDATA[Antonius Herusetya]]>;
<![CDATA[Yiska Cornelia Halim]]>
<![CDATA[ Proceeding of International Conference on Entrepreneurship (IConEnt) Vol 2 (2022): Proceeding of 2nd International Conference on Entrepreneurship (IConEnt) ]]>
Publisher : <![CDATA[Universitas Pelita Harapan ]]>
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<![CDATA[We suspect that in the era of the COVID-19 pandemic, where physical distance is required by rule, audit quality will decline, especially for small audit firms. This study examines the low audit quality of the modified audit opinion. Low audit quality is measured by low audit tenure and non-Big Four accounting firms. This study also examines this relationship in the era of the COVID-19 pandemic. The sample is all non-financial companies listed on the Indonesia Stock Exchange for 2018-2020. Using logistic regression analysis in our models, our study show contrary empirical evidence to our hypothesis that low audit tenure and non-Big Four audit firms are positively related to modified audit opinion. However, this study found no evidence that client complexity affects the relationship between low audit tenure and non-big four with modified audit opinions, both in the entire observation period and during the COVID-19 era. Our results give new implications to the stakeholders that audit quality of low tenure and non-Big Four firms do not automatically decline in the era of the COVID-19 pandemic.]]>
<![CDATA[Market Reaction Toward the Detailed Content of Disclosure in the Modified Audit Opinion: Case of Indonesia ]]>
<![CDATA[Wijaya, Hana]]>;
<![CDATA[Herusetya, Antonius]]>
<![CDATA[ Proceeding of International Conference on Entrepreneurship (IConEnt) Vol 3 (2023): Proceeding of 3rd International Conference on Entrepreneurship (IConEnt) ]]>
Publisher : <![CDATA[Universitas Pelita Harapan ]]>
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<![CDATA[This study examines the market reaction toward information content in the auditors' opinions measured by the number of paragraphs and detailed disclosures in additional and modified paragraphs in the modified audit opinion. The study sample was taken from all public companies on the Indonesian Stock Exchange, except for the financial industries in 2018-2020. Hypotheses tests were carried out using linear multiple regression models. With a total sample of 1017 firm-year observations for 339 listed companies, our study found evidence that the market reacted negatively to disclosures in audit opinions in the form of the number of paragraphs in the modified audit opinions. However, this study did not find evidence that the market reacts to the number of detailed contents in additional paragraphs and modification paragraphs. Our further tests found strong evidence of incremental information captured by the capital market players in the form of positive reactions to the number of paragraphs and detailed topics in the paragraphs of modified audit opinions during the Covid-19 pandemic in 2020. Results of the study provide practical implications that capital market players use detailed information contained in paragraphs of modified audit opinions to make investment decisions, reflected in the earnings response coefficient.]]>
<![CDATA[Does Client Complexity Before and During the Covid-19 Pandemic Affect Audit Partner Independence? Evidence from the Modified Audit Opinions ]]>
<![CDATA[Amabel, Vania]]>;
<![CDATA[Herusetya, Antonius]]>
<![CDATA[ Proceeding of International Conference on Entrepreneurship (IConEnt) Vol 3 (2023): Proceeding of 3rd International Conference on Entrepreneurship (IConEnt) ]]>
Publisher : <![CDATA[Universitas Pelita Harapan ]]>
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<![CDATA[This study examines the impact of the client's level of complexity on the modified audit opinion (MAO). This study also examines the moderating effect of the COVID-19 pandemic on the relationship between client complexity level and modified audit opinion. The level of client complexity is measured using a complexity score with the dimensions of company size, level of bankruptcy risk, level of company growth, and financial performance. The study sample was taken from all listed companies on the Indonesia Stock Exchange except for the financial industry, with an observation period of 2018-2020. Using logistic regression analysis and 1020 firm-year observations, our study found that client complexity positively affects the audit partner quality measured by the tendency to issue modified audit opinions. Further study found no evidence that the COVID-19 pandemic occurred in 2020 has a moderating effect on the relationship between client complexity and modified audit opinions. This study's results imply that the sample profile, which the Big Four audit firms dominate, reflects the relatively high quality of audit partners in Indonesia in issuing modified audit opinions despite client complexities.]]>
<![CDATA[Does Managerial Ability Have Information Content for Capital Market Players? An Empirical Study in Indonesia ]]>
<![CDATA[Totong, Allysa]]>;
<![CDATA[Herusetya, Antonius]]>
<![CDATA[ Proceedings of the International Conference on Entrepreneurship (IConEnt) Vol. 4 (2024): Proceedings of the 4th International Conference on Entrepreneurship (IConEnt) ]]>
Publisher : <![CDATA[Universitas Pelita Harapan ]]>
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<![CDATA[This study empirically tests the effect of managerial ability on market reaction. Managerial ability is measured using the Demerjian et al. (2012) model, while market reaction is measured using the earnings response coefficient (ERC). The study observations include samples from all public companies on the IDX listed from 2017 to 2021 with a final number of observations of 1,380 in firm-years, except for the financial sector. By using the non-probability sampling method and purposive sampling technique, and the linear multiple regression estimation model, this study found no evidence that managerial ability can be detected by the market. Our additional testing using a measure of highest level of managerial ability also found no evidence that the market can capture the information content measured by the ERC from the highest level of managerial ability. Further test also found no evidence that during the crisis period due to the COVID-19 pandemic there is no incremental information from the existence of managerial ability captured by the capital market players. The results of this study are robust considering the results of sensitivity and additional tests.]]>
<![CDATA[INFORMATION ASYMMETRY, MARKET REACTION AND COMPANY PERFORMANCE: PRE AND DURING THE COVID-19 PANDEMIC ]]>
<![CDATA[Herusetya, Antonius]]>;
<![CDATA[Lawu, Sintya Andrey]]>
<![CDATA[ Proceedings of the International Conference on Entrepreneurship (IConEnt) Vol. 2 (2022): Proceedings of the 2nd International Conference on Entrepreneurship (IConEnt) ]]>
Publisher : <![CDATA[Universitas Pelita Harapan ]]>
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<![CDATA[This study examines the effect of information asymmetry and market reaction on company performance before and during the Covid-19 pandemic. The population in this study are all listed companies on the Indonesia Stock Exchange except for the financial sector with the 2018-2020 observation year. We define the observation period as pre- pandemic (2018-2019) and during the pandemic Covid-19 (2020). This study used the purposive sample selection method and obtained 953 observations. Using multiple linear regression analysis models, our study finds evidence that information asymmetry negatively affects firm performance. During the Covid-19 pandemic, this study finds weak evidence of the moderating role of Covid-19 on the relationship between information asymmetry and performance. Furthermore, this study found no evidence that the company's performance gave a market reaction, measured by the earnings response coefficient, but in the Covid-19 pandemic period, the company's performance gave a positive market reaction.]]>
<![CDATA[LOW AUDIT QUALITY: CLIENT COMPLEXITY AS MODERATING VARIABLE, PRE- AND AT THE PANDEMIC COVID-19 PERIOD ]]>
<![CDATA[Herusetya, Antonius]]>;
<![CDATA[Halim, Yiska Cornelia]]>
<![CDATA[ Proceedings of the International Conference on Entrepreneurship (IConEnt) Vol. 2 (2022): Proceedings of the 2nd International Conference on Entrepreneurship (IConEnt) ]]>
Publisher : <![CDATA[Universitas Pelita Harapan ]]>
Show Abstract
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<![CDATA[We suspect that in the era of the COVID-19 pandemic, where physical distance is required by rule, audit quality will decline, especially for small audit firms. This study examines the low audit quality of the modified audit opinion. Low audit quality is measured by low audit tenure and non-Big Four accounting firms. This study also examines this relationship in the era of the COVID-19 pandemic. The sample is all non-financial companies listed on the Indonesia Stock Exchange for 2018-2020. Using logistic regression analysis in our models, our study show contrary empirical evidence to our hypothesis that low audit tenure and non-Big Four audit firms are positively related to modified audit opinion. However, this study found no evidence that client complexity affects the relationship between low audit tenure and non-big four with modified audit opinions, both in the entire observation period and during the COVID-19 era. Our results give new implications to the stakeholders that audit quality of low tenure and non-Big Four firms do not automatically decline in the era of the COVID-19 pandemic.]]>
<![CDATA[Market Reaction Toward the Detailed Content of Disclosure in the Modified Audit Opinion: Case of Indonesia ]]>
<![CDATA[Wijaya, Hana]]>;
<![CDATA[Herusetya, Antonius]]>
<![CDATA[ Proceedings of the International Conference on Entrepreneurship (IConEnt) Vol. 3 (2023): Proceedings of the 3rd International Conference on Entrepreneurship (IConEnt) ]]>
Publisher : <![CDATA[Universitas Pelita Harapan ]]>
Show Abstract
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<![CDATA[This study examines the market reaction toward information content in the auditors' opinions measured by the number of paragraphs and detailed disclosures in additional and modified paragraphs in the modified audit opinion. The study sample was taken from all public companies on the Indonesian Stock Exchange, except for the financial industries in 2018-2020. Hypotheses tests were carried out using linear multiple regression models. With a total sample of 1017 firm-year observations for 339 listed companies, our study found evidence that the market reacted negatively to disclosures in audit opinions in the form of the number of paragraphs in the modified audit opinions. However, this study did not find evidence that the market reacts to the number of detailed contents in additional paragraphs and modification paragraphs. Our further tests found strong evidence of incremental information captured by the capital market players in the form of positive reactions to the number of paragraphs and detailed topics in the paragraphs of modified audit opinions during the Covid-19 pandemic in 2020. Results of the study provide practical implications that capital market players use detailed information contained in paragraphs of modified audit opinions to make investment decisions, reflected in the earnings response coefficient.]]>
<![CDATA[Does Client Complexity Before and During the Covid-19 Pandemic Affect Audit Partner Independence? Evidence from the Modified Audit Opinions ]]>
<![CDATA[Amabel, Vania]]>;
<![CDATA[Herusetya, Antonius]]>
<![CDATA[ Proceedings of the International Conference on Entrepreneurship (IConEnt) Vol. 3 (2023): Proceedings of the 3rd International Conference on Entrepreneurship (IConEnt) ]]>
Publisher : <![CDATA[Universitas Pelita Harapan ]]>
Show Abstract
|
Download Original
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Original Source
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Check in Google Scholar
<![CDATA[This study examines the impact of the client's level of complexity on the modified audit opinion (MAO). This study also examines the moderating effect of the COVID-19 pandemic on the relationship between client complexity level and modified audit opinion. The level of client complexity is measured using a complexity score with the dimensions of company size, level of bankruptcy risk, level of company growth, and financial performance. The study sample was taken from all listed companies on the Indonesia Stock Exchange except for the financial industry, with an observation period of 2018-2020. Using logistic regression analysis and 1020 firm-year observations, our study found that client complexity positively affects the audit partner quality measured by the tendency to issue modified audit opinions. Further study found no evidence that the COVID-19 pandemic occurred in 2020 has a moderating effect on the relationship between client complexity and modified audit opinions. This study's results imply that the sample profile, which the Big Four audit firms dominate, reflects the relatively high quality of audit partners in Indonesia in issuing modified audit opinions despite client complexities.]]>
<![CDATA[Managerial Ability and Carbon Emission Disclosure: Do CEOs Care About This Matter in Indonesia? ]]>
<![CDATA[Rian Nur Aulia]]>;
<![CDATA[Antonius Herusetya]]>
<![CDATA[ Proceedings of the International Conference on Entrepreneurship (IConEnt) Vol. 5 (2025): Proceedings of the 5th International Conference on Entrepreneurship (IConEnt) ]]>
Publisher : <![CDATA[Universitas Pelita Harapan ]]>
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<![CDATA[ABSTRACT This study examines the relationship between entity managerial capability and carbon emission disclosure of publicly listed companies on the Indonesian Stock Exchange, covering the years 2019–2023. Managerial capability is measured using data envelopment analysis (DEA) at the firm level as a decision-making unit using the Demerjian et al. (2012) model, while carbon emission disclosure uses a score for carbon emission disclosure. A final set of 301 firm-year observations was obtained by using a purposive sampling method and the available carbon emission disclosure data. Data analysis using multiple linear regression found evidence contradicting the study's hypothesis, where CEO managerial capability is negatively related to carbon emission disclosure for publicly listed companies in Indonesia. This study's findings imply that carbon emission disclosure, which is part of the global temperature reduction efforts outlined in the 2015 Paris Agreement and part of the Environment, Social, and Governance (ESG) program promoted by regulators, is still not a priority for publicly listed companies in Indonesia.]]>
<![CDATA[Managerial Ability and Carbon Emission Disclosure: Do CEOs Care About This Matter in Indonesia? ]]>
<![CDATA[Rian Nur Aulia]]>;
<![CDATA[Antonius Herusetya]]>
<![CDATA[ Proceedings of the International Conference on Entrepreneurship (IConEnt) Vol. 5 (2025): Proceedings of the 5th International Conference on Entrepreneurship (IConEnt) ]]>
Publisher : <![CDATA[Universitas Pelita Harapan ]]>
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<![CDATA[ABSTRACT This study examines the relationship between entity managerial capability and carbon emission disclosure of publicly listed companies on the Indonesian Stock Exchange, covering the years 2019–2023. Managerial capability is measured using data envelopment analysis (DEA) at the firm level as a decision-making unit using the Demerjian et al. (2012) model, while carbon emission disclosure uses a score for carbon emission disclosure. A final set of 301 firm-year observations was obtained by using a purposive sampling method and the available carbon emission disclosure data. Data analysis using multiple linear regression found evidence contradicting the study's hypothesis, where CEO managerial capability is negatively related to carbon emission disclosure for publicly listed companies in Indonesia. This study's findings imply that carbon emission disclosure, which is part of the global temperature reduction efforts outlined in the 2015 Paris Agreement and part of the Environment, Social, and Governance (ESG) program promoted by regulators, is still not a priority for publicly listed companies in Indonesia.]]>
