Aug 2026· International Journal of Accounting, Management, Economics and Social Sciences (IJAMESC)· Vol 4, pp. 1741-1757· 0 citations· 18 references
Abstract
This study examines the influence of good corporate governance, financial reporting timeliness, audit tenure, and auditor reputation on earnings quality in banking sector companies listed on the Indonesia Stock Exchange during the 2020–2024 period. The study is motivated by the critical importance of earnings quality in the banking sector, which operates in a highly regulated environment and plays a strategic role in maintaining national financial stability, particularly during the post-pandemic period characterized by economic pressures and increased earnings management incentives. The sample consists of commercial banks consistently listed on the Indonesia Stock Exchange during the observation period, selected using purposive sampling. Panel data regression with the Random Effect Model was employed to test the proposed hypotheses. The results indicate that auditor reputation has a significant negative effect on earnings quality, suggesting that banks audited by Big Four auditors tend to exhibit lower earnings quality compared to those audited by non-Big Four auditors. In contrast, good corporate governance, financial reporting timeliness, and audit tenure do not significantly influence earnings quality. However, all variables simultaneously have a significant effect on earnings quality, explaining 22.91% of its variation. These findings suggest that auditor reputation plays a more significant role in influencing earnings quality than other governance and audit characteristics in the Indonesian banking sector, providing valuable insights for regulators, banking management, and investors in assessing and enhancing earnings quality.
This study investigates whether audit quality, audit tenure, and Environmental, Social, and Governance (ESG) disclosure enhance earnings quality, while examining the moderating role of firm risk. The research is motivated by the increasing demand for reliable financial reporting and growing concerns over earnings management practices that undermine the credibility of corporate financial statements. Although previous studies have explored the individual effects of audit quality, audit tenure, and ESG disclosure on earnings quality, limited evidence exists regarding their combined influence and the conditional role of firm risk. This study employs a quantitative explanatory research design using panel data from non-financial companies listed on the Indonesia Stock Exchange (IDX) during the 2021–2025 period. Secondary data are collected from annual reports, audited financial statements, and sustainability reports, and analyzed using panel data regression with moderation analysis. The findings indicate that audit quality, audit tenure, and ESG disclosure significantly improve earnings quality by reducing discretionary accruals. Furthermore, firm risk significantly moderates these relationships, suggesting that the effectiveness of audit mechanisms and sustainability reporting depends on the firm's risk profile. The study contributes to the accounting and corporate governance literature by providing an integrated framework that links audit characteristics, ESG disclosure, and firm risk in explaining earnings quality. The results also offer practical implications for regulators, auditors, corporate managers, and investors in promoting transparent financial reporting and strengthening corporate governance practices.
Maulina Diyah Permatasari, Vista Yulianti, Lutfia Dhiya Ulhaq· Jurnal Mutiara Ilmu Akuntans...· 0 citations
This study examined the effect of audit quality on earnings management among listed industrial
goods companies in Nigeria. The study was motivated by persistent concerns about financial
reporting credibility, audit governance effectiveness, and managerial opportunistic behaviour
in emerging capital markets. The study adopted an ex-post facto research design because
secondary historical data were utilized without manipulating study variables. The population
of the study comprised 21 listed industrial goods companies listed on the Nigerian Exchange
Group (NXG). Census sampling was employed due to the small population size. Data were
collected from audited annual financial statements covering the period 2015 to 2024. Panel
regression analysis was used for data estimation after conducting diagnostic tests such as
multicollinearity, heteroskedasticity, and Hausman specification tests. The results revealed that
auditor industry specialization, auditor independence, and audit tenure significantly reduce
earnings management behaviour. Audit fee was not statistically significant, while audit size
showed mixed influence on earnings management. The study concludes that audit quality
attributes play important roles in improving financial reporting quality among consumer goods
firms in Nigeria. The study recommends stronger audit independence enforcement, promotion
of auditor specialization, and optimal audit tenure regulation to enhance transparency and
accountability.
Henry Akintaro· International Journal of Eco...· 0 citations
The credibility of financial reporting is fundamental for investor confidence and market
stability, particularly in the banking sector where large volumes of public funds are managed.
This study examines the influence of audit rotation and audit tenure on the share prices of listed
Nigerian banks. Using an ex-post facto research design, the study analyses secondary data
spanning fifteen years (2010–2024) across selected deposit money banks listed on the Nigerian
Stock Exchange. Audit rotation and audit tenure are employed as proxies for audit quality,
while share price serves as the measure of market valuation. Descriptive statistics, correlation
analysis, unit root tests, and panel regression techniques are applied to determine the
relationships among the variables. The findings reveal that audit tenure exerts a significant
positive effect on share prices, suggesting that sustained auditor engagement enhances
financial reporting credibility and investor confidence. Conversely, audit rotation exhibits a
negative short-term impact on share prices, reflecting the temporary adjustment costs and
knowledge gaps associated with changing auditors. These results align with the predictions of
Agency Theory, which emphasizes the importance of monitoring mechanisms to protect
shareholder interests, and Stakeholder Theory, which highlights the need for transparent
reporting to maintain trust among market participants. The study concludes that both audit
tenure and audit rotation are critical components of audit governance, and their strategic
implementation can enhance investor perception and market valuation. Policymakers and
regulators are encouraged to balance auditor continuity with independence requirements to
optimize audit effectiveness and protect shareholder interests.
O. E. Alpheaus· IIARD INTERNATIONAL JOURNAL...· 0 citations
This quantitative study aims to examine the influence of the risk management committee, firm size, and corporate leverage on audit fees in banking and insurance sector companies listed on the Indonesia Stock Exchange (IDX) during the 2022–2024 period. This study is motivated by the importance of understanding the determinants of audit fees in highly regulated industries, where corporate governance mechanisms, financial complexity, and risk characteristics may affect audit pricing decisions. The sample was selected using a purposive sampling technique, resulting in 40 banking and insurance companies that met the research criteria. Secondary data were collected from the companies’ annual reports and audited financial statements for the 2022–2024 period and analyzed using panel data regression. The findings indicate that firm size has a positive and significant effect on audit fees, suggesting that larger companies require greater audit effort due to their more complex operations, higher transaction volumes, and broader reporting responsibilities. In contrast, the risk management committee does not have a significant effect on audit fees, indicating that the existence of this governance mechanism alone does not substantially influence auditors’ pricing decisions. Meanwhile, corporate leverage has a negative and significant effect on audit fees, implying that differences in capital structure may influence auditors’ assessment of audit engagement and pricing. Overall, the results demonstrate that company-specific characteristics, particularly firm size and leverage, play an important role in determining audit fees in Indonesia’s banking and insurance sectors. These findings contribute to the literature on audit pricing and corporate governance while providing practical implications for company management, auditors, investors, and regulators in understanding the factors that influence audit fee determination and improving governance practices within the financial services industry.
One issue that still frequently arises in businesses is earnings management, which can lower the quality of financial statement data. This investigation analyzes how audit committee size, the presence of female members, and meeting frequency influence earnings management. It also examines how audit quality, as an external check, affects the influence of committee size, gender diversity, and meeting frequency on earnings management. A quantitative methodology was utilized. The study focused on companies listed on the Indonesian Stock Exchange (IDX) that operate in the non-cyclical consumer goods industry during 2022 to 2024. The study selected a purposive sample of 73 companies. The study used panel data regression in EViews 12. The findings indicate that audit committee size and gender composition do not significantly prevent earnings management, whereas more frequent audit committee meetings play a significant role in reducing it. High-quality external audits strengthen the effectiveness of larger audit committees in limiting earnings management, but weaken the positive effect of gender diversity and the negative effect of meeting frequency. Overall, reducing earnings management requires not only an effective audit committee but also proactive oversight and strong external audit quality.
The study examined the effect of audit fees on the earnings quality of quoted industrial goods
companies in Nigeria. Specifically, it evaluated the influence of audit fees on earnings
predictability and earnings persistence. Two research objectives, questions, and hypotheses guided
the study. An ex-post facto research design was adopted, utilizing secondary data extracted from
the audited financial statements and annual reports of listed industrial goods companies from 2013
to 2023. The population consisted of all thirteen industrial goods companies listed on the Nigerian
Exchange Group, with ten companies purposively selected based on the availability of complete
financial data. Data analysis was conducted using descriptive statistics and Panel Ordinary Least
Squares (OLS) regression techniques. The results revealed that audit fees have a positive and
significant effect on both earnings predictability and earnings persistence. This indicates that
adequate auditor engagement enhances the reliability and sustainability of reported earnings,
thereby improving overall earnings quality. It was concluded that audit fees play a critical role in
strengthening corporate governance and financial reporting transparency in Nigerian industrial
goods companies. It was recommended that firms ensure audit fees are commensurate with the
scope of audit work to maintain high-quality financial reporting.
T. Ogiriki· International Journal of Eco...· 0 citations
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