Abstract
This study was conducted to obtain answer for four research questions: (1) whether the effecivenes of audit committee affected whistleblowing system, (2) whether the effectivenes of internal audit affected whistleblowing system, (3) whether whistleblowing system affected fraud disclosure, and (4) whether fraud disclosure affected market reaction. This research was analyzed using Structural Equation Modeling SEM with PLS model. The samples were 57 companies that listed on the IDX in year 2014. Results of the study were summarized as follow: (1) The effectivenes of audit committee had negative significant effect on whistleblowing system, (2) The effectiveness of internal audit did not have effect on whistleblowing system, (3) whistleblowing system did not have effect on fraud disclosure, and (4) fraud disclosure had negative significant effect on stock market reaction. The implication of this research is that the company should encourage the implementation of whistleblowing system as an effective early fraud prevention system, hence the number of fraud will decrease.
Highlights
This study was conducted to obtain answer for four research questions: (1) whether the effecivenes of audit committee affected whistleblowing system, (2) whether the effectivenes of internal audit affected whistleblowing system, (3) whether whistleblowing system affected fraud disclosure, and (4) whether fraud disclosure affected market reaction
The samples were 57 companies that listed on the IDX in year 2014
Results of the study were summarized as follow: (1) The effectivenes of audit committee had negative significant effect on whistleblowing system, (2) The effectiveness of internal audit did not have effect on whistleblowing system, (3) whistleblowing system did not have effect on fraud disclosure, and (4) fraud disclosure had negative significant effect on stock market reaction
Summary
Governance (2008) good corporate governance diperlukan untuk mendorong terwujudnya pasar yang efisien, transparan, dan konsisten terhadap peraturan perundang-undangan. Hal ini didukung hasil survey yang dilakukan oleh Waldron pada tahun 2012 menunjukkan bahwa mayoritas laporan yang diterima melalui whistleblowing system berindikasi adanya praktik kecurangan. Sedangkan penelitian yang dilakukan oleh Read & Rama (2003) menyimpulkan bahwa audit internal merupakan pihak yang berperan penting dalam pelaksanaan whistleblowing system. Komite Nasional Kebijakan Governance (2008) whistleblowing system merupakan bagian dari sistem pengendalian internal perusahaan yang bertujuan untuk pengungkapan kecurangan di perusahaan, sedangkan Global Corporate Governance Forum (2007); Chartered Institute of Internal Auditors (2014) menyatakan bahwa whistleblowing system mampu mendeteksi mayoritas fraud dalam suatu organisasi. Association of Certified Fraud Examiners (2014) menyatakan bahwa perusahaan yang terindikasi kasus kecurangan akan mengakibatkan penurunan reputasi bisnisnya sehingga berdampak pada kerugian perusahaan, sedangkan Survei yang dilakukan oleh Deloitte (2014) menyimpulkan bahwa kecurangan merupakan salah satu faktor etika yang sangat mempengaruhi risiko reputasi dunia bisnis yang dapat berdampak pada kerugian perusahaan. Sehingga hipotesis ke empat dalam penelitian ini adalah sebagai berikut: H4: Pengungkapan kecurangan berpengaruh negatif pada reputasi perusahaan dalam pasar saham
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
