PENGARUH KOMITE AUDIT TERHADAP KUALITAS LABA

AGUNG SUARYANA

Abstract


This research aims at examining the impact of audit committees on earnings quality. The study is
motivated by the controversy of previous studies about performance of audit committee.
Earnings quality is measured by Earnings Responsse Coefficient (ERC). Sample of the
study consists of 97 manufacturing companies listed on the Jakarta Stock Exchange. Data is
collected using purposive sampling method. The ERC is estimated using pooled cross-sectional
coefficient method (CRSM) and firm specific coefficient method (FSCM) in the observation
period of 2001-2002.
The result using CRSM and FSCM shows that audit committee firms ERC’s were bigger
than non audit committee firm ERC’s. These result showed that unexpected earnings of audit
committee firms were responssed stronger than non audit committee firm because investor
believe that noise of audit committee firms earnings were less than non audit committee firms.
The result indicate that investors belive audit committees have done their responssibility to
monitor financial reporting process.

Keywords


audit committee, earnings responsse coefficient, pooled cross-sectional coefficient method, and firm specific coefficient method, earnings quality

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