Abstract-Vol-8-Issue-2, Wiwik Utami, Dwi Asih Surjandari and Taufik Akbar

A Study on Financial Statements Quality Based on Characteristic of Board Commissioners and Audit committee: An Explanatory Sequential Mixed-Method Approach
Wiwik Utami *, Dwi Asih Surjandari * and Taufik Akbar **
Universitas Mercu Buana, Jakarta, Indonesia*
Graduate School of Business, Penang, Universiti Sains Malaysia, and Universitas Mercu Buana, Jakarta, Indonesia**

 

 

Abstract: This study investigates financial statements quality (proxy by earnings quality and transparency) based on the characteristic of board commissioners and audit committees using an explanatory sequential mixed methods research design. First, the researchers doing experimental research designs. Experimental research is carried out by creating company case scenarios with strong (weak) commissioners and audit committee. The results conclude that investors provide a high assessment of the quality of financial statements produced by companies that have characteristics of the board of commissioners and audit committee following regulations. Second, a qualitative approach was introduced to obtain actual evidence in the practice of investor decisions. Data was collected through interviews with informants. The result showed that the informants did not consider the characteristics of the board of commissioners and the audit committee in making investment decisions. The informant agreed that good governance is crucial, but not only by looking at the characteristics of the board of commissioners and the audit committee. The primary information used by investors is the track record of CEOs, CFOs, and corporate actions.

Keywords: Board of Commissioners, Audit Committee, Financial Statements, Earnings, Transparency, Investor Perception

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DOI: https://doi.org/10.51659/josi.20.123