Track: Undergraduate Student Paper Competition

Abstract

A financial statement is a piece of information that contains a company's position and financial performance that can be used as material for decision-making for its users; the information in the financial statements must be presented relevantly and reliable; in other words, it needs to be integrity. However, cases of fraud in financial statements still occur frequently, indicating the poor integrity of financial statements in a company. This definition indicates that the company has not presented relevant and reliable financial statements. This study aims to determine the effect of managerial ownership, independent commissioner, auditor industry specialization, and profitability on the integrity of financial statements of insurance sector companies listed on the Indonesia Stock Exchange in 2017 – 2020. The sample for this study is selected by using the purposive sampling method. For the four-year observation, 48 data samples are used. After the outlier, the data samples changed to 41. The research method for this study is panel data regression analysis. The result showed that managerial ownership, independent commissioner, auditor industry specialization, and profitability affect the integrity of financial statements. Partially, managerial ownership has a positive effect, profitability has a negative effect, while independent commissioner and auditor industry specialization do not affect the integrity of financial statements.