Corporate Governance and Ceo Characteristics on Financial Reporting Quality: Evidence from Consumer Goods Companies in Asean
DOI:
https://doi.org/10.24857/rgsa.v18n9-067Keywords:
Corporate Governance, CEO Characteristics, Financial Reporting Quality, Earnings ManagementAbstract
Objective: The purpose of this study is to obtain empirical evidence regarding the effect of corporate governance (board size, board independence, audit committee size, audit committee independence) and CEO characteristics (CEO age, CEO duality, and CEO gender) on financial reporting quality.
Method: This study conducted content analysis and linear regression analysis on 258 consumer goods sector companies listed on the Osiris and Bloomberg databases for the period 2018-2021.
Results and Discussion: The results obtained revealed that board size and CEO gender have a positive effect on financial reporting quality. In contrast, board independence and CEO duality have a negative effect on financial reporting quality. Meanwhile, audit committee size, audit committee independence, and CEO age have no effect on financial reporting quality.
Research Implications: The research on financial reporting quality explains useful implications for companies to make economic decisions and avoid fraud that happens to a company.
Originality/Value: Authors find that no studies have investigated the effect of corporate governance and CEO characteristics in the ASEAN context. This study provides empirical data about the effect of corporate governance and CEO characteristics on financial reporting quality and how these different compositions and characteristics can facilitate the transition to manipulate and affect the financial reporting quality.
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