Research Article
The Role of Audit Regulation on The Relationship between Audit Quality, Corporate Governance and Firm Value
@INPROCEEDINGS{10.4108/eai.17-7-2019.2302484, author={Bambang Prayogo and Meco Sitardja}, title={The Role of Audit Regulation on The Relationship between Audit Quality, Corporate Governance and Firm Value}, proceedings={Proceedings of the 1st International Conference on Science and Technology in Administration and Management Information, ICSTIAMI 2019, 17-18 July 2019, Jakarta, Indonesia}, publisher={EAI}, proceedings_a={ICSTIAMI}, year={2021}, month={1}, keywords={corporate governance audit quality audit regulation earnings management firm value}, doi={10.4108/eai.17-7-2019.2302484} }- Bambang Prayogo
Meco Sitardja
Year: 2021
The Role of Audit Regulation on The Relationship between Audit Quality, Corporate Governance and Firm Value
ICSTIAMI
EAI
DOI: 10.4108/eai.17-7-2019.2302484
Abstract
This study examined the role of audit regulation on the effect of corporate governance and audit quality on firm value with earning management as intervening. This study examined using structural equation modeling method with the approach of partial least squares (SEM-PLS). The research sample is purposive with a total of 79 manufacture companies listed on the Indonesia Stock Exchange in period 2008-2015 with 480 observation years. The results showed audit regulation influence positively on audit quality. Independent commissioner and audit quality influence positively on firm value, while audit committee and firm value shows no significant. Independent commissioner and audit quality influence negatively on earnings management, while audit committee and firm value shows no significant. Earnings management influences negatively on firm value. The changes of audit quality is significantly effect on earnings management mitigation in companies so firm value that represented on stock price can be analyzed more carefully in long term period view.