Proceedings of the 1st International Conference on Economic and Education, ICON 2021, 14 - 15 December 2021, Padang-West Sumatra, Indonesia

Research Article

Corporate Governance and Financial Statement Quality – Evidence from Cooperatives Institutions in Indonesia

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  • @INPROCEEDINGS{10.4108/eai.14-12-2021.2318329,
        author={Hasan  Mukhibad and Muhammad  Khafid},
        title={Corporate Governance and Financial Statement Quality -- Evidence from Cooperatives Institutions in Indonesia},
        proceedings={Proceedings of the 1st International Conference on Economic and Education, ICON 2021, 14 - 15 December 2021, Padang-West Sumatra, Indonesia},
        publisher={EAI},
        proceedings_a={ICON},
        year={2022},
        month={7},
        keywords={financial statement quality; good corporate governance; cooperatives institution},
        doi={10.4108/eai.14-12-2021.2318329}
    }
    
  • Hasan Mukhibad
    Muhammad Khafid
    Year: 2022
    Corporate Governance and Financial Statement Quality – Evidence from Cooperatives Institutions in Indonesia
    ICON
    EAI
    DOI: 10.4108/eai.14-12-2021.2318329
Hasan Mukhibad1,*, Muhammad Khafid1
  • 1: Universitas Negeri Semarang, Central Java, 50229, Indonesia
*Contact email: hasanmukhibad@mail.unnes.ac.id

Abstract

This research aims at examining the effect of corporate governance mechanism, income volatility, ROA, ROE, size, liability and leverage to the quality of financial statements. The object of this research was cooperatives in Semarang city, Central Java, as many as 176 cooperatives. The sample was determined by purposive sampling methods. The analysis of hypothesis acceptance used was multiple regression analysis with the significance level of 10%. The results showed that GCG mechanism measured by the supervisory board’s educational background had a significant effect on the quality of financial statements. Besides, the volatility, ROA, ROE, size, and leverage also have a significant influence on the quality of financial statements. Meanwhile, liquidity does not have any significant effect on the quality of financial statements.