Determinants of earnings quality: the role of the audit committee as a moderator
Purpose: This research aims to examine and analyze the influence of capital structure, liquidity, profit growth, company size, and profitability simultaneously and partially on profit quality and audit committees in companies in the consumer cyclical industrial sector listed on the Indonesia Stock...
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| Format: | Article |
| Language: | English |
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Universitas Muhammadiyah Malang
2024-12-01
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| Series: | Jurnal Akademi Akuntansi |
| Subjects: | |
| Online Access: | https://ejournal.umm.ac.id/index.php/jaa/article/view/35553 |
| Summary: | Purpose: This research aims to examine and analyze the influence of capital structure, liquidity, profit growth, company size, and profitability simultaneously and partially on profit quality and audit committees in companies in the consumer cyclical industrial sector listed on the Indonesia Stock Exchange for the 2021 - 2022 period.
Methodology/approach: Research approach with Partial Least Structure Equation Modeling with a two-stage approach test model using the SmartPLS 3.2.9 application. (Bahasa Indonesia.
Findings: The test results show that Capital Structure, Liquidity, Profit Growth, Company Size, and Profitability have no effect on the Quality of Profits in Consumer Cyclical Sector Companies. In addition, the moderation test results show that the Audit Committee is unable to moderate the relationship between these factors.
Practical and Theoretical Contribution/Originality: This research provides a significant contribution to understanding the factors that influence the quality of company profits in the Consumer Cyclicals sector in Indonesia. Limitations of this research include the short observation period, namely 2021-2022, and the focus only on Consumer Cyclicals sector companies on the Indonesian Stock Exchange.
Research Limitation: This may limit the generalizability of research results to other sectors or different periods. In addition, using an audit committee moderating variable based on the number of members may not fully reflect the effectiveness of the supervision carried out by the committee.
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| ISSN: | 2715-1964 2654-8321 |