Abstract
This study examined the simultaneous influence of performance credibility, go-public companies, company director with adequate auditing experience, age of CEO, material weakness disclosure, changes in public accountant, connection between CEO with the government, and Good Corporate Governance on the quality of financial reporting of Regional Development Banks in Sumatera. This study also analyzed the partial influences of Independent variables on the quality of financial statements of Regional Development Banks in Sumatera, and determined the variable with the strongest influence on the quality of financial statements of regional banks in Sumatera. Secondary data were analyzed using logistic regression tests. Sample in this study is all of Regional Development Banks in Sumatera. The hypotheses of this study consist of three types of tests; Simultaneous Significance Test (F test), Individual Parameter Significance Test (T-test), and Coefficient Determination Test (R2). The results of the data analysis showed that : the first, performance credibility, go-public companies, company director with adequate auditing experience, age of CEO, changes in public accountant, connection between CEO with the government, ,material weakness disclosures, and Good Corporate Governance simultaneously affected the quality of financial statements reporting at regional banks in Sumatera. Secondly, material weakness disclosures and Good Corporate Governance had partial influence on the quality of the financial reporting, Meanwhile, performance credibility, go-public companies, directors with auditing experience, age of CEO, changes in public accountant, and the connection between CEO with the government had not partial influence on the quality of the financial reporting. Third, All variable was found influence significance (65%) on the quality of financial reporting of regional banks in Sumatera. Keywords: Good corporate governance, public accountant and quality of financial statements DOI: 10.7176/RJFA/11-17-19 Publication date: October 31 st 2020
Highlights
1.1 Research Background Accounting is a means of communication in the business world can helping to control and secure written property, and it is an essential tool helping to settle the financial affairs of a company and government
This study examined the simultaneous influence of performance credibility, go-public companies, company director with adequate auditing experience, age of CEO, material weakness disclosure, changes in public accountant, connection between CEO with the government, and Good Corporate Governance on the quality of financial reporting of Regional Development Banks in Sumatera
The results of the data analysis showed that : the first, performance credibility, go-public companies, company director with adequate auditing experience, age of CEO, changes in public accountant, connection between CEO with the government,material weakness disclosures, and Good Corporate Governance simultaneously affected the quality of financial statements reporting at regional banks in Sumatera
Summary
1.1 Research Background Accounting is a means of communication in the business world can helping to control and secure written property, and it is an essential tool helping to settle the financial affairs of a company and government. The value of Nagelkerke R Square shows that 65.5% of the quality of financial reporting at BPD in Sumatra is influenced by independent variables, namely performance credibility, go public company, experience of directors as auditors, the age of CEO, disclosure of material weaknesses, change/rotation of the accountants, connections between CEO and government and GCG. Because the probability is smaller than 0.05, the regression model can be used to predict that the probability is proxied by the performance credibility variable, the go public company, the experience of the director as an auditor, the age of the CEO, disclosure of material weaknesses, changes in public accountants, the connection between CEO and the government, GCG collectively has a significant effect on the quality of financial reporting
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