Financial Restatement Affecting Factors Analysis on Indonesia Manufacturing Companies

Abstract

Research Purposes. The purpose of this research is to examine and analyze the influence of corporate governance, ownership structure, financial performance, audit quality, related party transaction, and founders on board towards financial restatement of Indonesia manufacturing companies. Research Methods. The design of this research is a quantitative research. The objects of this research are Indonesia Stock Exchange manufacturing companies of 2013-2017. Data analysis technique used in this research is logistic. Research Results and Findings. The result of this research shows that corporate governance represented by board of commissioner positively affect financial restatement, board of director negatively affect financial restatement, while independent commissioner and audit committee have no effect towards financial restatement. Ownership structure has no effect towards financial restatement. Financial performance, audit quality, and related party transaction also have no effect towards financial restatement. While, founders on board positively affect financial restatement.

Financial Restatement on Manufacture Sector Company Reviewed from The Aspect of Corporate Governance and Company-Specific Characteristics

“…Corporate governance is the structure and procedures used to guarantee that the organization's interests are satisfied, as well as how to decide how to oversee the operational operations of the business (Marjono, 2021). According to Sansaloni(2018), corporate governance is a set of interconnected concepts that serve as a system of management, direction, and leadership in a firm to increase corporate value for investors.…”

“…According to (Sembiring, 2005) the greater the number of members of the board of commissioners, the easier it will be for the CEO to be controlled and the supervision will be more effective. Research conducted by (Widyaningrum & Faisal, 2015) and (Marjono, 2021) states that board size has a negative effect on the restatement. H1: the size of the board of commissioners has a negative effect on the financial restatement b.…”

“…Investors do not have to worry about investing since effective company governance may help them keep their money. The corporate governance mechanism encourages organizations to implement excellent accounting rules and carry out the company's managerial supervision function to issue quality financial reports and reduce the frequency of financial report restatements (Marjono, 2021). In addition to sound corporate governance, the key deciding element in financial statement restatement is the company's particular features (Hasnan et al 2019).…”

Kecenderungan Dampak Restatement Laporan Keuangan

“…Kinerja keuangan ROA tidak signifikan terhadap penyajian kembali keuangan suatu perusahaan karena penyajian kembali keuangan dapat terjadi karena alasan lain misalnya situasi politik. Selain itu, kinerja keuangan perusahaan dapat terpengaruh karena faktor ekonomi secara keseluruhan [7]. Pengendalian internal yang rendah dapat menyebabkan restatement laporan keuangan [8] dari masalah teknis perusahaan sendiri dan pemeriksaan internal perusahaan.…”

“…Tabel 1 menyajikan kriteria sampel dan gambar 2 menyajikan kerangka penelitian. Keempat, penelitian menguji pengaruh ROA pada kecenderungan penyajian kembali laporan keuanga Leverage memiliki pengaruh positif terhadap dampak penyajian kembali laporan keuangan Manajemen harus melaporkan pemanfaatan sumber daya yang dikelola dan kinerja keuangan merupakan indikator dari hasil yang dilakukan oleh manajemen sebagai bentuk akuntabilitas terhadap investor [7].…”