PENGARUH KARAKTERISTIK KOMITE AUDIT TERHADAP KINERJA PERUSAHAAN
DOI:
https://doi.org/10.53625/jirk.v2i9.4946Keywords:
Audit Committee, Independence, Expertise, Frequency of Meeting, Firm's PerformanceAbstract
This research aims to look into the impact of the characteristics of audit committee on company performance. The sample consists of companies that were listed on the LQ45 Indonesia Stock Exchange (IDX) respectively around 2016 and 2020. The findings indicate that committee size and frequency of meeting have a notable negative relationship with firm performance, whereas expertise have quite a significant positive relationship. This study also unveil that independence possess insignificant association with performance of companies. This study’s findings may assist managers and boards determine the most appropriate choices about the audit committee characteristics to enhance the company’s audit committee for implementation in future policy preparation to protect shareholders’ preferences. This study adds to the literature by identifying the role of audit committee characteristics in company performance, attempting to argue that specific audit committee characteristics drive performance.
References
M. C. Pucheta-Martínez and C. De Fuentes, “The Impact of Audit Committee Characteristics on the Enhancement of the Quality of Financial Reporting: an empirical study in the Spanish context,” Corp. Gov. An Int. Rev., vol. 15, no. 6, pp. 1394–1412, Dec. 2007, doi: 10.1111/j.1467-8683.2007.00653.x.
X. Robin and N. A. Amran, “Audit Committee Characteristics on Family Firms Performance in Indonesia,” Int. Conf. Account. Stud. 2016, no. August 2016, pp. 190–194, 2016.
A. S. Samasta, H. Muharam, and A. M. Haryanto, “THE EFFECT OF BOARD OF DIRECTOR, AUDIT COMMITTEE, INSTITUTIONAL OWNERSHIP TO FIRM VALUE, WITH FIRM SIZE, FINANCIAL LEVERAGE AND INDUSTRIAL SECTOR AS CONTROL VARIABLES (Study on Listed Companies in Indonesian Stock Exchange Period 2011-2015),” J. Bisnis Strateg., vol. 27, no. 1, p. 53, 2018, doi: 10.14710/jbs.27.1.53-62.
A. Klein, “Audit Committee, Board of Director Characteristik, and Earning Management,” J. Account. Econ., vol. 33, no. 5, pp. 375–400, 2002, doi: 10.1078/0030-4026-00026.
C. Contessotto and R. Moroney, “The association between audit committee effectiveness and audit risk,” Account. Financ., vol. 54, no. 2, pp. 393–418, 2014, doi: 10.1111/acfi.12010.
M. S. Beasley, J. V. Carcello, D. R. Hermanson, and T. L. Neal, “The Audit Committee Oversight Process,” Contemp. Account. Res., vol. 26, no. 1, pp. 65–122, 2009, doi: 10.1506/car.26.1.3.
I. Herdjiono and I. M. Sari, “The Effect of Corporate Governance on The Performance Of a Company. Some Empirical Findings from Indonesia,” J. Manag. Bus. Adm. Cent. Eur., vol. 25, no. 1, pp. 33–52, 2017, doi: 10.7206/jmba.ce.2450-7814.188.
B. S. Kallamu and N. A. M. Saat, “Audit Committee Attributes and Firm Performance: Evidence From Malaysian Finance Companies,” Asian Rev. Account., vol. 23, no. 3, pp. 206–231, Sep. 2015, doi: 10.1108/ARA-11-2013-0076.
M. Zuliyana, M. Mikial, and M. Luthfi, “Pengaruh Good Corporate Governance Pada Kinerja Keuangan di Perusahaan LQ45 yang Terdaftar di Bursa Efek Indonesia (BEI),” J. Neraca, vol. 1, no. 2, pp. 46–61, 2017.
A. Aswandy and E. Zainal Arifin, “The Performance of Lq45 Index as a Market Benchmark in Indonesia,” J. Ekon. dan Keuang. Indones., vol. 17, no. 2, pp. 121–131, 2017.
I. Isnaini and S. Sofia, “Analisis Perbandingan Kinerja Indeks LQ45 dan Indeks IDX30,” J. Ilm. Manaj. dan Bisnis, vol. 10, no. 2, pp. 113–121, 2019.
D. Rachmat and N. Nurdin, “Studi Komparatif Kinerja Saham LQ45 dan IDX Composite,” J. Ekon. dan Bisnis, vol. 20, no. 1, pp. 47–54, 2021.
R. Hasanah and A. Ariyanto, “Faktor-Faktor yang Mempengaruhi Kinerja Saham dalam Indeks LQ45,” J. Ris. Akunt. dan Keuang., vol. 6, no. 2, pp. 153–162, 2020.
S. Mollah and B. Talukdar, “Ownership Structure, Corporate Governance, and Firm’s Performance in Emerging Markets: Evidence from Bangladesh,” Int. J. Financ., vol. 19, no. July, pp. 4316–4332, 2007.
V. Sharma, V. Naiker, and B. Lee, “Determinants of audit committee meeting frequency: Evidence from a voluntary governance system,” Account. Horizons, vol. 23, no. 3, pp. 245–263, 2009, doi: 10.2308/acch.2009.23.3.245.
L. A. Dar, M. A. Naseem, R. U. Rehman, and D. G. S. K. Niazi, “Corporate Governance and Firm Performance a Case Study of Pakistan Oil and Gas Companies Listed in Karachi Stock Exchange,” Glob. J. Manag. Bus. Res., vol. 11, no. 8, pp. 1–10, 2011.
L. McDaniel, R. D. Martin, and L. A. Maines, “Evaluating financial reporting quality: The effects of financial expertise vs. financial literacy,” Account. Rev., vol. 77, no. SUPPL., pp. 139–167, 2002, doi: 10.2308/accr.2002.77.s-1.139.
J. Bédard, S. M. Chtourou, and L. Courteau, “The effect of audit committee expertise, independence, and activity on aggressive earnings management,” Auditing, vol. 23, no. 2, pp. 13–35, 2004, doi: 10.2308/aud.2004.23.2.13.
Z. J. Lin, J. Z. Xiao, and Q. Tang, “The Roles , Responsibilities and Characteristics of audit Committee in China,” Accounting, Audit. Account. J., vol. 21, no. 5, pp. 721–751, 2008, doi: 10.1108/09513570810872987.
M. L. Defond, R. N. Hann, H. U. Xuesong, and E. Engel, “Does the market value financial expertise on audit committees of boards of directors?,” J. Account. Res., vol. 43, no. 2, pp. 153–193, 2005, doi: 10.1111/j.1475-679x.2005.00166.x.
H. Aldamen, K. Duncan, S. Kelly, R. Mcnamara, and S. Nagel, “Audit committee characteristics and firm performance during the global financial crisis,” Account. Financ., vol. 52, no. 4, pp. 971–1000, 2012, doi: 10.1111/j.1467-629X.2011.00447.x.
J. V Carcello and T. L. Neal, “Audit Committee Characteristics and Auditor Dismissals following ‘“New”’ Going-Concern Reports,” Account. Rev., vol. 78, no. 1, pp. 95–117, 2003.
A. Hamid and R. Aziz, “Impact of the Amendments of Malaysian Code of Corporate Governance ( 2007 ) on Governance of GLCs and Performance,” Int. J. Soc. Behav. Educ. Econ. Bus. Ind. Eng., vol. 6, no. 11, pp. 3181–3186, 2012.
H. Ben Barka and F. Legendre, “Effect of the board of directors and the audit committee on firm performance: a panel data analysis,” J. Manag. Gov., vol. 21, no. 3, pp. 737–755, 2017, doi: 10.1007/s10997-016-9356-2.
A. Hassan Bazhair, “Audit committee attributes and financial performance of Saudi non-financial listed firms,” Cogent Econ. Financ., vol. 10, no. 1, 2022, doi: 10.1080/23322039.2022.2127238.
