Do management reports on internal control over financial reporting improve financial reporting?

Dowdell, Thomas D.; Herda, David N.; Notbohm, Matthew

doi:10.1016/j.racreg.2014.02.011

Cited by 25 publications

(12 citation statements)

References 23 publications

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“…Empirically has not found the role of moderation with firm size (firm size) linking the ownership structure with fraud financial statements. In the form of this research study, firm size factors have a significant influence and moderate the relationship between ownership structure and fraud financial statements (Dowdell et al, 2014;Houcine, 2017). The size of the firm is an important factor related to the ownership structure because if the size of the firm is bigger, more information for investors in relation to the investments were made.…”

Section: Effect Of Moderation Firm Size Between Ownership Structure Amentioning

confidence: 92%

“…The greater the domestic ownership will be more effective in controlling all the actions that are opportunistic made by management. Controls will leading the management to be careful at low levels in using debt to anticipate financial distress and Financial risk and will minimize fraud in financial reporting (Crutchley, 1999;Dowdell, et al, 2014;Houcine, 2017). Domestic share ownership has a better ability to supervise management in managing the company.…”

Section: Effect Of Domestic Ownership On Fraud Financial Statementmentioning

confidence: 99%

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Corporate Governance in Detecting Lack of Financial Report

Syamsudin

Imronudin

Utomo

et al. 2017

JDM

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Fraudulent financial statements begins with the act of manipulating the financial statements for personal gain. Efforts to fulfill obligations on the rights of stakeholders make corporate governance play an important role in minimizing the occurrence of fraudulent financial statements. This study aims to investigate the phenomenon of corporate governance in detecting fraud or irregularities in the preparation of financial statements. Fraud detection is measured by the Beneish model.. The sample used in this research is 694 with manufacturing company period 2011-2015. Sampling technique with purposive sampling method. To test the Hypothesis used logistic regression analysis with moderation model. The results obtained are foreign ownership, domestic ownership and public ownership significant negative effect on fraud financial statement. While firm size has a significant positive effect fraud financial statement. Firm size as a moderating variable further strengthens the relationship between foreign ownership, domestic ownership and public ownership of fraud financial statements. AbstrakKecurangan laporan keuangan diawali dengan perbuatan memanipulasi laporan keuangan demi mendapatkan keuntungan pribadi. Upaya pemenuhan kewajiban terhadap hak para stakeholder membuat corporate governance berperan penting dalam meminimalisir terjadinya kecurangan laporan keuangan. Penelitian ini bertujuan untuk menyelidiki fenomena corporate governance dalam mendeteksi kecurangan atau penyimpangan dalam penyusunan laporan keuangan. Sampel yang digunakan pada penelitian ini yaitu 694 dengan perusahaan manufaktur periode 2011-2015. Teknik pengambilan sampel dengan metode purposive sampling. Untuk menguji hipotesis digunakan analisis regresi logistik dengan model moderasi. Hasil penelitian yang didapat adalah kepemilikan asing, kepemilikan domestik, dan kepemilikan publik berpengaruh negatif signifikan terhadap fraud financial statement. Sedangkan firm size memiliki pengaruh positif signifikan fraud financial statement. Firm size sebagai variabel moderasi semakin memperkuat hubungan antara kepemilikan asing, kepemilikan domestik, dan kepemilikan publik terhadap fraud financial statement.

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Section: Effect Of Moderation Firm Size Between Ownership Structure Amentioning

confidence: 92%

Section: Effect Of Domestic Ownership On Fraud Financial Statementmentioning

confidence: 99%

Corporate Governance in Detecting Lack of Financial Report

Syamsudin

Imronudin

Utomo

et al. 2017

JDM

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“…ICQ may also affect the cost of equity capital through increased market liquidity. For instance, internal control deficiencies may signal to market participants the risk of misstatement in annual reports, leading to high levels of information asymmetry in capital markets (Dowdell, Herda, & Notbohm, ). Increased information asymmetry should be reflected in increased bid–ask spreads and price volatility, as well as reduced trading volume (Gupta, Sami, & Zhou, ).…”

Section: Hypotheses Developmentmentioning

confidence: 99%

Internal control quality, voluntary disclosure, and cost of equity capital: The case of an unregulated market

2019

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This paper examines the direct effect of internal control quality (ICQ) on cost of equity capital and whether ICQ has a moderating effect on the association between voluntary disclosure and cost of equity capital in an emerging market (Egypt). ICQ is measured using a survey of external auditors. A content analysis approach is used to proxy for the level of voluntary disclosure in annual reports. Finally, the Capital Asset Pricing Model framework is used to estimate cost of equity capital. Based on a sample of 512 firm‐year observations over the period 2007–2014, we find that ICQ is negatively and significantly associated with cost of equity capital, indicating that better controls reduce cost of equity capital as predicted by theory. In addition, ICQ moderates the association between voluntary disclosure and cost of equity capital since this association is only negative and significant for companies characterized by high ICQ. These findings remain stable after controlling for endogeneity concerns and political instability. Our study contributes to the internal control literature by focusing on an emergent unregulated market with respect to internal control disclosure and documents that ICQ plays an important role in reducing cost of equity capital (either directly or indirectly) by increasing the value relevance of voluntary disclosure among investors on the Egyptian stock exchange.

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“…Salah satu alat bantu pimpinan tersebut adalah suatu pengendalian intern yang dapat memperlihatkan kondisi baik pelaporan keuangan ataupun kondisi perusahaan yang sebenarnya (Skaife, Veenman, & Wangerin, 2013 (Dowdell, Herda, & Notbohm, 2014) Di dalam Standar Profesional Akuntan Publik disebutkan mendefinisikan pengendalian intern sebagai berikut :"Struktur pengendalian intern satuan usaha terdiri dari kebijakan dan prosedur yang diterapkan untuk memberikan keyakinan (assurance) memadai bahwa tujuan tertentu satuan usaha akan dicapai". (I.…”

Section: Pengendalian Internunclassified

Pengendalian Intern Dan Pemberian Kredit Usaha: Analisis Peranan Dan Efektifitas Sistem

Riswanto

Ningsih

Daryati

2017

JRAK

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Abstract. Necessary strategic efforts in maintaining the wheels of business that is being run, one business that can be done is to maximize the internal control of the company. Control can be done by this company depends onAbstrak. Upaya strategis yang diperlukan dalam menjaga roda bisnis yang sedang dijalankan, salah satu bisnis yang bisa dilakukan adalah memaksimalkan pengendalian internal perusahaan. Pengendalian yang bisa dilakukan oleh perusahaan ini tergantung dari jenis perusahaan, baik untuk jasa, komersial maupun manufaktur. Tujuan dari penelitian ini adalah untuk mengetahui sejauh mana kontrol peran intenal yang dilakukan oleh perusahaan dalam memberikan pinjaman usaha kepada calon nasabah secara efektif dan sesuai dengan sistem yang telah ditentukan. Metodologi penelitian yang digunakan adalah analisis kualitatif deskriptif yang memberikan penjelasan yang jelas sesuai dengan kondisi empiris yang terjadi di lapangan. Sedangkan untuk lokasi penelitian dalam penelitian ini adalah salah satu perusahaan yang bergerak dalam penyediaan layanan kredit, dengan menggunakan teknik wawancara, observsi dan pengolahan data sekunder yang berasal dari perusahaan. Kesimpulan penelitian yaitu dengan menggunakan sistem pengendalian internal yang baik di setiap instansi atau bidang pada berbagai tingkat manajemen akan memaksimalkan kinerja manajemen, terutama di bidang pinjaman, pinjaman yang diberikan diberikan secara efektif kepada nasabah yang benar-benar membutuhkan. Rekomendasi penelitian yaitu khusus untuk unit bisnis dimana penelitian dilakukan untuk memaksimalkan penggunaan sistem berbasis teknologi yang memiliki / komputerisasi dan memberikan pelatihan kepada pengguna / pengguna sistem komputerisasi sehingga bisa dimanfaatkan lebih maksimal daripada yang sudah ada. diperoleh.

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Do management reports on internal control over financial reporting improve financial reporting?

Cited by 25 publications

References 23 publications

Corporate Governance in Detecting Lack of Financial Report

Corporate Governance in Detecting Lack of Financial Report

Internal control quality, voluntary disclosure, and cost of equity capital: The case of an unregulated market

Pengendalian Intern Dan Pemberian Kredit Usaha: Analisis Peranan Dan Efektifitas Sistem

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