Proceedings of the 4th Asia Pacific Management Research Conference (APMRC 2022)

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Firm Value Effect of Managerial Ability and External Control Mechanism: Mediation Role of Financial Reporting Quality

Authors
Fransiskus Eduardus Daromes1, *, Suwandi Ng1
1Department of Accounting, Universitas Atma Jaya Makassar, Makassar, Indonesia
*Corresponding author. Email: fedaromes@lecturer.uajm.ac.id
Corresponding Author
Fransiskus Eduardus Daromes
Available Online 12 December 2022.
DOI
10.2991/978-94-6463-076-3_21How to use a DOI?
Keywords
Audit Quality; Financial Reporting Quality; Firm Value; Managerial Ability
Abstract

The aim of this study is to prove that managerial ability and external control as proxied by audit quality are predictors of financial reporting quality which in turn affect firm value. The empirical model of this research is constructed on the basis of Stakeholder Theory and Agency Theory. The population was all companies listed on the Indonesia Stock Exchange (IDX) with a research period of 2017–2019 with a sample of 210 companies each year selected by purposive sampling method. Data analysis was carried out by regression and path analysis. The results prove that managerial ability has a positive and significant influence on the quality of financial reporting. The quality of financial reporting has a positive and significant effect on firm value. Further testing shows that the quality of financial reporting has a mediating role in the relationship between managerial ability and audit quality on firm value.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 4th Asia Pacific Management Research Conference (APMRC 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
12 December 2022
ISBN
10.2991/978-94-6463-076-3_21
ISSN
2352-5428
DOI
10.2991/978-94-6463-076-3_21How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Fransiskus Eduardus Daromes
AU  - Suwandi Ng
PY  - 2022
DA  - 2022/12/12
TI  - Firm Value Effect of Managerial Ability and External Control Mechanism: Mediation Role of Financial Reporting Quality
BT  - Proceedings of the 4th Asia Pacific Management Research Conference (APMRC 2022)
PB  - Atlantis Press
SP  - 284
EP  - 300
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-076-3_21
DO  - 10.2991/978-94-6463-076-3_21
ID  - Daromes2022
ER  -