Proceedings of the First International Conference on Technology and Educational Science, ICSTES 2018, November 21-22 2018, Bali, Indonesia

Research Article

Financial Reporting Quality, audit Quality, and Investment Efficiency: Evidence from Indonesia

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  • @INPROCEEDINGS{10.4108/eai.21-11-2018.2282299,
        author={Sylvia Veronica Siregar and Siti Nuryanah},
        title={Financial Reporting Quality, audit Quality, and Investment Efficiency: Evidence from Indonesia},
        proceedings={Proceedings of the First International Conference on Technology and Educational Science, ICSTES 2018, November 21-22 2018, Bali, Indonesia},
        publisher={EAI},
        proceedings_a={ICTES},
        year={2019},
        month={3},
        keywords={audit quality financial reporting quality investment efficiency},
        doi={10.4108/eai.21-11-2018.2282299}
    }
    
  • Sylvia Veronica Siregar
    Siti Nuryanah
    Year: 2019
    Financial Reporting Quality, audit Quality, and Investment Efficiency: Evidence from Indonesia
    ICTES
    EAI
    DOI: 10.4108/eai.21-11-2018.2282299
Sylvia Veronica Siregar1,*, Siti Nuryanah1
  • 1: Universitas Indonesia
*Contact email: sylvia.veronica@ui.ac.id

Abstract

The aim of our study is to examine the effect of financial reporting quality and audit quality on investment efficiency. We also examine whether auditor quality moderates the association between financial reporting quality and investment efficiency. The external auditor is one of the corporate governance mechanisms, especially vital related to disclosure principle. Our observations consist of listed firms in Indonesia stock exchange with total observations are firm-years. The results of our study show that financial reporting quality has a significant and positive association with investment efficiency. We also find similar findings in our subsamples of over-investment. We expect that audit quality has a positive direct effect and moderating effect. However, we do not find supporting evidence for this