An Empirical Analysis on the Integrity of Financial Statements

Kusuma Indawati Halim

The goal of this research is to empirically identify the determinant factors of the integrity of financial statements. Data analysis is based on a sample of 32 consumer goods industry sector companies that are consistently listed in Indonesian Stock Exchange (IDX) for the period 2013- 2017. Descriptive statistics, correlation analysis, and panel data regression analysis are used to accomplish the goal of this research. The results reveal that financial distress has a significant negative influence on the integrity of financial statements, meanwhile audit committee and company size have positive significant effect. This research is an evidence for decision makers to evaluate determinants that explain the integrity of financial statements of consumer goods industry sector companies. Further researcher should focus on using different sector companies which may provide broader insight of the issues explained in this research.

Volume 12 | Issue 5

Pages: 544-549

DOI: 10.5373/JARDCS/V12I5/20201973