Enhancing Financial Reporting Quality to Improve Investment Efficiency (Empirical Evidence from Companies Listed in Indonesia Stock Exchange)

2019 ◽  
Vol 6 (2) ◽  
pp. 392-415
Author(s):  
Sylvia Fettry ◽  
Tita Djuitaningsih
Keyword(s):  
Empirical Evidence ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Investment Efficiency

scholarly journals Pengaruh Kualitas Pelaporan Keuangan Dan Sustainability Reporting Pada Efisiensi Investasi

2019 ◽  
pp. 188
Author(s):  
Ni Putu Lisna Vitriani ◽  
I. G. A. N. Budiasih
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Sustainability Reporting ◽  
Sampling Technique ◽  
Total Sample ◽  
Financial Reporting Quality ◽  
Investment Efficiency ◽  
Analysis Technique

The purpose of this study is to obtain empirical evidence regarding the effec of financial reporting quality and Sustainability Reporting on investment efficiency. This research was conducted on all non-financial companies listed on the Indonesia Stock Exchange in 2015-2017. The sampling technique used in this study was a purposive sampling. The samples taken were 16 companies with a total sample observation of 48 in 3 years. The data analysis technique used is Multiple Linear Regression. Based on the results of the study it is known that the higher the financial reporting quality of a company, the higher the level of efficiency of the company's investment and it is known that Sustainability Reporting has no effect on the efficiency of the company's investment. The results of this study are the practice of stakeholder theory and agency theory carried out by the company to maintain the long-term operational sustainability of the company. Keywords: Financial reporting quality, Sustainability Reporting, investment efficiency.

scholarly journals The Effect of Financial Reporting Quality and Capital Structure on Investment Efficiency in Listed Manufacturing Companies

2020 ◽  
Vol 3 (1) ◽  
pp. 161
Author(s):  
Gusnario Pranata ◽  
Fury Khristianty Fitriyah
Keyword(s):  
Capital Structure ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Company Size ◽  
Investment Efficiency ◽  
Manufacturing Companies ◽  
Z Score ◽  
Operating Cash Flow

Investment is one of the activities of the company in order to achieve the objectives of the company, which is generally to make a profit. Companies are required to properly plan and use resources to achieve optimum investment and avoid inefficient conditions for investment (overinvestment and underinvestment). This research aims to determine the effect of financial reporting quality and capital structure on investment efficiency in manufacturing companies listed on the Indonesia Stock Exchange. The control variables used in this research are company age, operating cash flow ratio, company size, tangibility, and Altman Z-Score. Secondary data from manufacturing sector companies listed on the Indonesia Stock Exchange during the period 2013 to 2015 are used as the research sample. All variables were analyzed using multiple linear regression analysis. The result of this research indicates that with a 5 percent significance level, financial reporting quality and capital structure variables with company age, operating cash flow ratios, company size, tangibility, and Altman Z-Score as the control variables simultaneously and significantly affect investment efficiency while contributing to the effect of 30.3 percent. Partially, financial reporting quality has a positive and significant effect on investment efficiency, and capital structure has a significant effect on investment efficiency

scholarly journals Financial Reporting Quality and Investment Efficiency: Evidence from Indonesian Stock Market

2021 ◽  
Vol 66 (2) ◽  
pp. 112
Author(s):  
Hanif Putra Ardianto ◽  
Iman Harymawan ◽  
Yuanita Intan Paramitasari ◽  
Mohammad Nasih
Keyword(s):  
Stock Market ◽  
Financial Reporting ◽  
Significant Relationship ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Investment Efficiency ◽  
Investment Management ◽  
The Impact ◽  
A Company

This study aims to analyze the impact of financial reporting quality on the investment efficiency of a company. The study uses 994 observations from companies listed on the Indonesia Stock Exchange (IDX) in three periods from 2013 to 2015. The findings suggest that higher financial reporting quality has a positive and significant relationship with investment efficiency. Furthermore, the tests were conducted on groups of companies experiencing underinvestment and overinvestment. It was found that higher financial reporting quality had a negative and significant relationship with companies experiencing overinvestment. The findings provide implications for investors in assessing investment management carried out by company.

The relationship between cost stickiness and financial reporting quality in Tehran Stock Exchange

2018 ◽  
Vol 67 (9) ◽  
pp. 1550-1565 ◽  
Author(s):  
Mahdi Salehi ◽  
Nasrin Ziba ◽  
Ali Daemi Gah
Keyword(s):  
Financial Reporting ◽  
Design Methodology ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Statistical Software ◽  
Testing Hypotheses ◽  
Content Type ◽  
The Relationship ◽  
Cost Stickiness

Purpose The purpose of this paper is to investigate the relationship between financial reporting and cost stickiness in companies listed on the Tehran Stock Exchange. Design/methodology/approach Data of all Iranian manufacturing listed companies gathered for testing hypotheses during 2010–2016 and R statistical software are employed in order to analyzing data. Findings The results of this study indicate that there is a significant relationship between administrative, sale, material, labor and overhead costs and the financial reporting qualities of the companies under study. Originality/value The study focuses on relationship between financial reporting and cost stickiness in companies listed on the Tehran Stock Exchange, which is the first study of its type in Iran.

Family ownership and financial reporting quality: Iranian evidence

2018 ◽  
Vol 8 (3) ◽  
pp. 339-356 ◽  
Author(s):  
Mahmoud Mousavi Shiri ◽  
Mahdi Salehi ◽  
Fatemeh Abbasi ◽  
Shayan Farhangdoust
Keyword(s):  
Financial Reporting ◽  
Family Firms ◽  
Stock Exchange ◽  
Accounting Information ◽  
Reporting Quality ◽  
Audit Fees ◽  
Financial Reporting Quality ◽  
Family Ownership ◽  
Content Type

PurposeIn the process of reporting accounting information, the auditor’s objective is to detect possible misstatements and errors in accounting information. Audit evidence aids auditors in providing reasonable assurance about the quality of financial reporting. Studying the quality of family firms’ financial reporting is of higher importance relative to non-family firms due to lower risk of accounting manipulation. Therefore, the purpose of this paper is to examine the relationship between family ownership structure and financial reporting quality from an auditing perspective.Design/methodology/approachTo analyze the research hypotheses, the authors use a sample data consisted of 221 companies listed on the Tehran Stock Exchange (including 52 family and 169 non-family firms) over a five-year span from 2011 to 2015.FindingsUsing multivariate regression analysis of panel data, our results indicate that audit risk in family firms is lower than their counterparts. Likewise, the findings are indicative of lower audit fees paid by family firms as compared to non-family ones. The authors also find that auditors put more effort in family firms and thus audit effort is more significant for these kinds of firms.Originality/valueThe study focuses on family ownership and financial reporting quality in a developing country like Iran and the results of the study may be beneficial to other developing nations, as Iran stock market possesses some unique features which are not normally prevailing in other equity markets, even in the Middle East.

Financial reporting quality, family ownership, and investment efficiency

2019 ◽  
Vol 45 (4) ◽  
pp. 513-535 ◽  
Author(s):  
Faisal Shahzad ◽  
Ijaz Ur Rehman ◽  
Sisira Colombage ◽  
Faisal Nawaz
Keyword(s):  
Financial Reporting ◽  
Family Firms ◽  
Emerging Market ◽  
Reporting Quality ◽  
Least Square ◽  
Financial Reporting Quality ◽  
Family Ownership ◽  
Investment Efficiency ◽  
Content Type ◽  
The Impact

Purpose The purpose of this paper is to empirically investigate the impact of two monitoring mechanisms: family ownership (FO) and financial reporting quality (FRQ) on investment efficiency (IE) over the period of 2007–2014 for listed firms on the Pakistan Stock Exchange. Design/methodology/approach The authors employ two-dimensional pooled OLS cluster at the firm and year level, two-stage least square regression and feasible generalized lease square regression regression methods. Findings The findings suggest that higher FRQ and FO are associated with higher IE. Further, the authors report that higher FRQ and FO mitigate over- and under-investment. The impact of FRQ on IE is stronger (weaker) for family-controlled businesses. The results for these particular estimates are robust for alternative estimation techniques and measures of FRQ and FO. Originality/value The study draws on both agency and behavioral agency theories and therefore contributes to the literature in the following ways. First, the authors examine a relationship between FRQ and IE. Second, the authors test the impact of FO on IE. Third, the authors test the moderating impact of FO on the relationship between FRQ and the IE of family and non-family firms in relatively less regulated emerging market.

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