The Influence of the Independent Board of Commissioners, Audit Committee and Accounting Conservatism on Profit Quality in the Indonesian Banking Industry

Abstract

Earnings quality is an important factor in the banking industry that has a significant impact on the health and sustainability of a company. The purpose of this study was to examine the effect of the Independent Board of Commissioners, Audit Committee, and Accounting Conservatism on Earnings Quality in the Indonesian banking industry. The independent variables used include the Independent Board of Commissioners, Audit Committee, and Accounting Conservatism. The dependent variable is earnings quality as measured by discretionary accruals. The data in this study is secondary data from 17 banks or companies listed on the Indonesia Stock Exchange in 2013-2017. The population for this study were banking companies in Indonesia that were listed on the Indonesia Stock Exchange (IDX) in 2013-2017, selected based on a sampling technique using purposive sampling. Methods of data analysis using multiple linear regression tests. The results of the study show that the independent board of commissioners has a positive effect on earnings quality. Meanwhile, conservatism has a negative effect on earnings quality. Furthermore, the audit committee has no effect on earnings quality.