Anti-Corruption Disclosure and Audit Quality on Earnings Management
- 10.2991/aebmr.k.211119.003How to use a DOI?
- anti-corruption disclosure; audit quality; earnings management
This study aims at examining the effects of anti-corruption disclosure and audit quality on earnings management. The Audit quality is proxied by the public accountant firm size and auditor specialization. In the analysis, two controls variable are added, namely return on assets and leverage. The sample of this study includes mining companies that were listed on the Indonesian Stock Exchange (IDX) in 2015-2019. The sample is selected by using the purposive sampling method. The results show that there is a significant negative relationship between anti-corruption disclosure and earnings management, which means as there are more disclosures being made by companies that indicates transparency and integrity activities, the possibilities of earnings management would decrease. However, audit quality does not significantly influence the earnings management because only the auditor specialization has a negative effect on earnings management.
This study aims at examining the effects of anti-corruption disclosure and audit quality on earnings management.
This study is important because the negative consequences could occur if company commit corruption as loss of trust from stakeholder could become a concerning problem for the firm in the future. Anti-corruption disclosure not only prevents acts of corruption, but it also provides transparency and accountability by increasing public awareness.
Research design, approach and method:
This research is a quantitative research, using secondary data and utilizing regression analysis to determine the relationship between anti-corruption disclosure, audit quality, and earnings management.
Anti-corruption disclosure has a negative significant relationship with earnings management which means as more disclosures were made by companies, indicating transparency and integrity activities, the possibilities of earnings management could decrease.
This study has several implications. Anti-corruption disclosure could prove the firm’s legitimacy for the stakeholder, showing that the company is able to hold its integrity and accountability through its transparency.
- © 2021 The Authors. Published by Atlantis Press International B.V.
- Open Access
- This is an open access article under the CC BY-NC license.
Cite this article
TY - CONF AU - Alhamdi ZUHRI AU - Martdian RATNASARI PY - 2021 DA - 2021/12/07 TI - Anti-Corruption Disclosure and Audit Quality on Earnings Management BT - Proceedings of the International Conference on Emerging Challenges: Business Transformation and Circular Economy (ICECH 2021) PB - Atlantis Press SP - 27 EP - 34 SN - 2352-5428 UR - https://doi.org/10.2991/aebmr.k.211119.003 DO - 10.2991/aebmr.k.211119.003 ID - ZUHRI2021 ER -