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The Influence of Free Float Shares and Audit Quality on Company Performance: Evidence from Indonesia

Author

Listed:
  • Sailendra SAILENDRA

    (Trisakti University, Jakarta, Indonesia)

  • Etty MURWANINGSARI

    (Trisakti University, Jakarta, Indonesia)

  • Sekar MAYANGSARI

    (Trisakti University, Jakarta, Indonesia)

Abstract

This study aimed to examine the effect of the free float of shares and audit quality on company performance in public manufacturing companies listed on the Indonesia Stock Exchange (IDX) during 2013-2016. The sample comprised 80 companies with 320 years-observation and the hypothesis and the relationship between variables were tested with the 3.0. version of Smart-PLS statistical program. The results show that the free float of shares has no significant impact on company performance, while audit quality has a significant positive effect. The results are relevant for regulators, shareholders and other stakeholders, especially in countries with emerging capital markets, such as Indonesia.

Suggested Citation

  • Sailendra SAILENDRA & Etty MURWANINGSARI & Sekar MAYANGSARI, 2019. "The Influence of Free Float Shares and Audit Quality on Company Performance: Evidence from Indonesia," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 17(154), pages 274-274.
    • Handle: RePEc:aud:audfin:v:17:y:2019:i:154:p:274
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    Cited by:

    1. Ionuț Viorel Herghiligiu & Ioan-Bogdan Robu & Marinela Istrate & Maria Grosu & Camelia Cătălina Mihalciuc & Adrian Vilcu, 2023. "Sustainable Corporate Performance Based on Audit Report Influence: An Empirical Approach through Financial Transparency and Gender Equality Dimensions," Sustainability, MDPI, vol. 15(18), pages 1-28, September.

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    More about this item

    Keywords

    free float of shares; company performance; audit quality; capital markets;
    All these keywords.

    JEL classification:

    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production

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