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Original Research

THE EFFECT OF PUBLIC ACCOUNTANT FIRM REPUTATION, AUDIT OPINION, AND CORPORATE GOVERNANCE ON THE DIGITALIZATION OF FINANCIAL REPORTS IN THE MANUFACTURING INDUSTRY

WIWI IDAWATI 1, MUCHLIS 2, and YENITA HARISSANDI 3.

Vol 18, No 08 ( 2023 )   |  DOI: 10.5281/zenodo.8246133   |   Author Affiliation: Accounting Department, Indonesia Banking School, Jl. Kemang Raya, Jakarta, Indonesia 1,2,3.   |   Licensing: CC 4.0   |   Pg no: 221-234   |   Published on: 14-08-2023

Abstract

This study aims to determine and analyze the impact of Public Accountant Firm's reputation, audit opinion, and corporate governance on Internet Financial Reporting (IFR) from the manufacturing industry listed on IDX in 2021. The objects of this research are manufacturing sector companies listed on the Indonesia Stock Exchange (IDX) in 2021. This study uses a quantitative approach with independent variables on Public Accountant Firm's Reputation, Audit Opinion, Public Ownership, and Board of Commissioners, and the dependent variable of the research is Internet Financial Reporting (IFR). This research also uses a control variable, namely company size. The sampling technique used in this research is purposive sampling, with a total sampling unit of 170 observation units. The analysis model used is multiple linear regression. The statistical analysis tool used in this study is Eviews10 software. This research showed public ownership, and the board of commissioners' size positively affected Internet Financial Reporting (IFR) disclosures, while Public Accountant Firm's reputation and audit opinion variables did not affect Internet Financial Reporting (IFR). These results can be used as a reference in improving and enhancing management's digitization of financial reports. The company's management is expected to be able to disseminate information about the company more transparently to increase public demand so that investors can make decisions by digitizing the financial statements. This study develops from previous research by proving that public ownership and the size of board commissioners can increase IFR disclosure. This research seeks to contribute knowledge with study factors that influence IFR, focusing on manufacturing companies listed on the IDX that issue annual reports and have personal websites in 2021.


Keywords

Internet Financial Reporting, Public Accountant Firm Reputation, Audit Opinion, Public Ownership, Board of Commissioners Size