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Company Monitoring Analysis on Financial Report Quality in Indonesia Stock Exchange Manufacturing Sector

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  • Abdul Nasser Hasibuan

Abstract

This research study aims to get information about the company monitoring analysis in manufacturing sector of Indonesia Stock Exchange. The sample used in the study was Indonesia Stock Exchange Manufacturers that were consisted of 100 respondents in 5 years observation. Probability sampling method and proportionate stratified random sampling, Statif, technique was employed in the study. The analysis model used in the study was SEM (Structural Equation Model) analysis, with partial least square alternative method by using SmartPLS software. The study found that simultaneously, monitoring and the quality of external auditor have significant effect on the quality of the market-based financial report. Whereas partially, monitoring has significant effect on the quality of the market-based financial report and the quality of external auditor does not have significant effect on the quality of the market-based financial report.

Suggested Citation

  • Abdul Nasser Hasibuan, 2018. "Company Monitoring Analysis on Financial Report Quality in Indonesia Stock Exchange Manufacturing Sector," Academic Journal of Economic Studies, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 4(4), pages 162-175, December.
    • Handle: RePEc:khe:scajes:v:4:y:2018:i:4:p:162-175
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    More about this item

    Keywords

    Company monitoring; board of directors? composition; financial report quality; economic consequent; information asymmetry and equity capital cost;
    All these keywords.

    JEL classification:

    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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