Internal Control Disclosure and Financial Reporting Quality : Evidence from Banking Sector in Indonesia

Ariza Arisandi; Henis Ayu Islami; Raden Roro Widya Ningtyas Soeprajitno

doi:10.24843/EJA.2022.v32.i02.p15

Ariza Arisandi Fakultas Ekonomi dan Bisnis Universitas Airlangga, Indonesia
Henis Ayu Islami Fakultas Ekonomi dan Bisnis Universitas Airlangga, Indonesia
Raden Roro Widya Ningtyas Soeprajitno Fakultas Ekonomi dan Bisnis Universitas Airlangga, Indonesia

DOI: https://doi.org/10.24843/EJA.2022.v32.i02.p15

Abstract

The purpose of this study is to examine the influence of Internal Control Disclosure Index (ICDI) and discretionary accruals (as a proxy for financial reporting quality). This study uses a data collection of Indonesian Stock Exchange listed banking sector companies’ financial statement and annual reports in 2016-2019. Sample was chosen using purposive sampling method. The analysis method used in this study is using STATA. The results of this study indicate that internal control disclosure there is significantly related to financial reporting quality. This research contributes empirically to the development of the literature as well as practically becomes a consideration for relevant management in making corporate decisions regarding the disclosure of their internal controls.

Keywords: Internal Control Disclosure; Financial Reporting Quality; Banking.

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