THE EFFECT OF CONTROLLING SHAREHOLDERS AND CORPORATE GOVERNANCE ON AUDIT QUALITY

Vidyata Annisa Anafiah, Vera Diyanty, Ratna Wardhani

Research output: Contribution to journalArticlepeer-review

Abstract

This research aims to investigate the effect of controlling shareholders and the effectiveness of board of commissioners and audit committee on the audit quality measured by AQMS (Audit Quality Metric Score). This study uses companies listed in the Indonesian Stock Exchange as the sample. The results of this research provide evidence that alignment and entrenchment effect of the controlling shareholders have positive effect on audit quality. The alignment of interests between the controlling and non-controlling shareholders cause the company to appoint a high-quality auditor. The results also show that when companies face high entrenchment effect of the controlling shareholders, they still appoint a high-quality auditor to reduce the agency conflict and to maintain the company's reputation. This research also shows that the effectiveness of board of commissioners and audit committee positively affect the audit quality.
Original languageEnglish
Pages (from-to)1-19
JournalJurnal Akuntansi dan Keuangan Indonesia
Volume14
Issue number1
DOIs
Publication statusPublished - 1 Jun 2017

Keywords

  • alignment and entrenchment effect, audit quality, controlling shareholders, board of commissioners, audit committee

Fingerprint Dive into the research topics of 'THE EFFECT OF CONTROLLING SHAREHOLDERS AND CORPORATE GOVERNANCE ON AUDIT QUALITY'. Together they form a unique fingerprint.

Cite this