Earnings Quality on Pre vs Post Audit Report: Evidence from Banking Industry in Indonesia

Journal of Applied Economic Sciences, Spring 2019, Vol. 14 Issue 1, p 207-218

Posted: 20 Apr 2020

See all articles by Nadia Klarita Rahayu

Nadia Klarita Rahayu

Airlangga University

Iman Harymawan

Universitas Airlangga

Mohammad Nasih

affiliation not provided to SSRN

Date Written: 2019

Abstract

The aim of this research is to examine and analyze the association betwen audit adjustment and earnings quality. Samples used in this research are banking companies listed on the Indonesia Stock Exchange during the period 2012-2016, a total of 358 samples from 42 companies. This research examined the effect of audit adjustment on earnings quality with a focus on banking companies in Indonesia and measurements that were adjusted to the nature of banking companies.The analysis of this research employs Ordinary Least Square Regression, and T-test processed with STATA 14 software. This study finds that audit adjustment helps to reduce earnings management. The result indicates that audit adjustment has an impact on earnings quality in highly regulated industry, especially in the banking industry.

Suggested Citation

Rahayu, Nadia Klarita and Harymawan, Iman and Nasih, Mohammad, Earnings Quality on Pre vs Post Audit Report: Evidence from Banking Industry in Indonesia (2019). Journal of Applied Economic Sciences, Spring 2019, Vol. 14 Issue 1, p 207-218, Available at SSRN: https://ssrn.com/abstract=3561991

Nadia Klarita Rahayu

Airlangga University ( email )

Jl. Darmawangsa Dalam 2
Surabaya, 60286
Indonesia

Iman Harymawan (Contact Author)

Universitas Airlangga ( email )

JL. Airlangga no 4
Surabaya, East Java 60286
Indonesia

HOME PAGE: http://www.feb.unair.ac.id

Mohammad Nasih

affiliation not provided to SSRN

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