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Determinant of Earnings Quality: IFRS Convergence, Accounting Disclosure and Audit Committee in Indonesia

Author

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  • Diyah Pujiati

    (Accounting Department, Hayam Wuruk Perbanas University, Surabaya, Indonesia)

  • Supriyati

    (Accounting Department, Hayam Wuruk Perbanas University, Surabaya, Indonesia)

  • Riski Aprillia Nita

    (Accounting Department, Hayam Wuruk Perbanas University, Surabaya, Indonesia)

Abstract

The quality of earnings indicates the current or future capability of the company to support the decisions made by managing board and other stakeholders. This research have to goal to examine the determinant of earnings quality in Indonesia, including: IFRS convergence, accounting disclosures, and audit committees. Data were acquired from official website in period of 2016-2018 and number of data was 212 observation data. Method of analysis involved regression test and classical assumption test. Result of research showed that the audit committee had a positive effect on earnings quality, while the convergence of IFRS and accounting disclosure cannot affect earnings quality. Research model was tested using control variables, respectively leverage, liquidity and company size. The test found that leverage is the only control variable that affects earnings quality. Information in financial statements is not the most important information to investors. Audit committee and creditor contribution play more important role in decisions regarding earnings quality.

Suggested Citation

  • Diyah Pujiati & Supriyati & Riski Aprillia Nita, 2022. "Determinant of Earnings Quality: IFRS Convergence, Accounting Disclosure and Audit Committee in Indonesia," International Journal of Finance & Banking Studies, Center for the Strategic Studies in Business and Finance, vol. 11(1), pages 177-189, January.
    • Handle: RePEc:rbs:ijfbss:v:11:y:2022:i:1:p:177-189
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    References listed on IDEAS

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