IJFBP International Journal of Family Business Practices
Vol 5, No 1 (2022)

Factors Affecting Corporate Governance and Its Implication on Accounting Information Quality: Indonesia Trusted Company Awardees

Judith Gallena Sinaga (Universitas Advent Indonesia)
Hamfri Djajadikerta (Universitas Katolik Parahyangan)
Amelia Setiawan (Universitas Katolik Parahyangan)



Article Info

Publish Date
23 Aug 2022

Abstract

This study aims to explain the factors affecting corporate governance and its implication on accounting information quality.  Globally, there are many companies that collapsed due to misleading accounting information.  Companies declares financial statements as free from errors or misstatements wherein fact it misleads financial statements users.  There were 36 firm year observation being analyzed using PLS-SEM to process the available data.  The results showed that audit committee and board of directors have significant effect on good corporate governance, while institutional ownership has no significant effect on good corporate governance.  On the other hand, corporate governance has significant effect on accounting information quality. This is an indication that the quality of accounting information depends on the practice of good corporate governance.  Strict compliance of rules and regulations lead to better governance of publicly listed companies.  The originality of this research is that this is the first ever study that had focused on the awardees for mostly trusted, trusted, and fairly trusted companies listed in Indonesia Stock Exchange.         

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Journal Info

Abbrev

IJFBP

Publisher

Subject

Economics, Econometrics & Finance

Description

The International Journal of Family Business Practices (IJFBP) is open access and biannual double-blind peer-reviewed journal. Numerous family enterprises are based around the legend of an entrepreneurial founder who has stood firm in the face of difficulties. The IJFBP widens the scope to look ...