5th European International Conference on Industrial Engineering and Operations Management

Financial Statement Integrity: Intellectual Capital, Leverage, and Audit Quality of Consumer Goods Sector in Indonesia

Annisa Nurbaiti & I Putu Diva Arimbawa Putra
Publisher: IEOM Society International
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Track: Business Management
Abstract

This study finds out the simultaneous and partial effect intellectual capital, leverage, and audit quality on the financial statements' integrity of companies in the consumer goods industry listed on the Indonesia Stock Exchange (IDX) in 2016-2020. Purposive sampling produced 32 samples which data of five years were observed hence 160 data sets were observed. Panel data regression was used in the analysis assisted by the EViews 12 software. The results showed that the simultaneously, the independent variables of intellectual capital, leverage, and audit quality affected the financial statements’ integrity. Intellectual capital had a partial positive effect on the financial statements’ integrity, while leverage and audit quality did not affect the financial statements’ integrity. The results of this study can be helpful for further researchers as they add information, insight, and knowledge. Furthermore, companies can consider their intellectual capital in improving the financial statement’s integrity.

Keywords
audit quality, financial statement integrity, intellectual capital, leverage

 

Published in: 5th European International Conference on Industrial Engineering and Operations Management, Rome, Italy

Publisher: IEOM Society International
Date of Conference: July 26-28, 2022

ISBN: 978-1-7923-9161-3
ISSN/E-ISSN: 2169-8767