Setiyono Miharjo
Faculty of Economics and Business, Universitas Gadjah Mada

Published : 5 Documents
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Does Auditor Tenure Reduce Audit Quality?

Gadjah Mada International Journal of Business Vol 14, No 3 (2012): September-December
Publisher : Master of Management, Faculty of Economics and Business, Universitas Gadjah Mada

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Abstract

Reduced auditor independence and the rise of corporate accounting manipulations have caused trust of the users in audited financial statements to begin to decline, so users of financial statements are questioning whether public accountants are independent parties. This research issue is related to the Decree of the Minister of Finance No. 17 in 2008 about public accountant services. Giving attestation services, in the form of financial statements about an entity, are conducted by the audit firm for no longer than 6 consecutive fiscal years and by a public accountant for 3 consecutive fiscal years at the longest. The purpose of this research is to examine empirically the influence of auditor tenure on audit quality. Auditor tenure is measured as the length of the auditor-client relationship. Audit quality is measured by the propensity of auditors to issue a going-concern opinion. This study uses a sample of firms listed on the Indonesia Stock Exchange during the 2003-2008 period. Research analysis uses logit model to measure the effect of auditor tenure on the auditors’ propensity to publish a going-concern opinion. The hypothesis which states that the length of auditor tenure influences negatively the propensity of auditors to issue a going-concern opinion is statistically supported. This research is expected to provide empirical evidence about the importance of limiting of the auditor-client relationship.       

Does Auditor Rotation Increase Auditor Independence?

Gadjah Mada International Journal of Business Vol 18, No 3 (2016): September-December
Publisher : Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada

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Abstract

This study aims to empirically test the effects of auditor rotation and auditor tenure on an auditor’s independence in companies listed on the Indonesia Stock Exchange during the years 2002-2010. This study using logistic regression estimation technique. The results show that, statistically, the auditor’s tenure has significant negative effects on the auditor’s independence, measured by the tendency to give a ‘going concern’ opinion. Furthermore, the results also show significant differences between the effects of short and long term tenures on the auditors’ independence. Auditor rotation has significant positive effects on the auditors’ independence.

Does Auditor Tenure Reduce Audit Quality?

Gadjah Mada International Journal of Business Vol 14, No 3 (2012): September-December
Publisher : Master in Management, Faculty of Economics and Business, Universitas Gadjah Mada

Show Abstract | Original Source | Check in Google Scholar

Abstract

Reduced auditor independence and the rise of corporate accounting manipulations have caused trust of the users in audited financial statements to begin to decline, so users of financial statements are questioning whether public accountants are independent parties. This research issue is related to the Decree of the Minister of Finance No. 17 in 2008 about public accountant services. Giving attestation services, in the form of financial statements about an entity, are conducted by the audit firm for no longer than 6 consecutive fiscal years and by a public accountant for 3 consecutive fiscal years at the longest. The purpose of this research is to examine empirically the influence of auditor tenure on audit quality. Auditor tenure is measured as the length of the auditor-client relationship. Audit quality is measured by the propensity of auditors to issue a going-concern opinion. This study uses a sample of firms listed on the Indonesia Stock Exchange during the 2003-2008 period. Research analysis uses logit model to measure the effect of auditor tenure on the auditors’ propensity to publish a going-concern opinion. The hypothesis which states that the length of auditor tenure influences negatively the propensity of auditors to issue a going-concern opinion is statistically supported. This research is expected to provide empirical evidence about the importance of limiting of the auditor-client relationship.       

THE EFFECT OF FAMILY OWNERSHIP ON PROFIT AND PERFORMANCE COMPANY MANAGEMENT: BASED ON THE THEORY OF STEWARDSHIP

Jurnal Aplikasi Manajemen Vol 16, No 2 (2018)
Publisher : Jurusan Manajemen Fakultas Ekonomi dan Bisnis Universitas Brawijaya

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Abstract

This study examines the relationship between family ownership of a company and its implications for earnings quality. In the family ownership, the family can affect the quality of earnings that are reported in two ways, namely through the entrenchment and the alignment effect. Earnings are managed opportunistically shows a low earnings quality. Whereas the influence of alignment shows a high quality where earnings are not managed opportunistically. The study also examines if the family ownership has a positive effect on company performance. There are five factors that affect innate accruals quality, namely the company size, the standard deviation of operating cash flows, the standard deviation of sales, duration of operating cycles, and negative earnings. Quality of accruals consists of accruals that reflect economic conditions and accruals that reflect managerial choices. This study shows that family-owned companies in Indonesia do not perform earnings management opportunistically. Earnings management used is the one that is in line with the company’s business model, company industrial environment and economic conditions as represented by innate accruals. This suggests that family ownership has an earnings quality and shows an alignment of interest between the company management and the owners. Thus the alignment of the interests lends support to the stewardship theory.

Desentralisasi fiskal dan probabilitas terjadinya korupsi: Sebuah bukti empiris dari Indonesia

Jurnal Ekonomi dan Bisnis Vol 22 No 1 (2019)
Publisher : Fakultas Ekonomika dan Bisnis Universitas Kristen Satya Wacana

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Abstract

This research aims to examine the effect of fiscal decentralization on the probability of corruption in Indonesian local governments. The study uses the amount of the fiscal balance funds from the central government to the provincial governments as the proxy of the fiscal decentralization variable. Meanwhile, the measure of corruption is province-level corruption cases that have binding legal force from the Supreme Court in 2010-2013. By using 132 province-level observations for the period of 2010-2013, the paper shows that fiscal decentralization has a positive impact on the probability of corruption. Further, the results imply that the greater the fiscal balance funds, the more likely are local governments to engage in corruption. The results are robust when several control variables (personnel expenditure, population size, and area type) are added. Specifically, only fiscal decentralization affects the probability of corruption in local governments, while employee expenditure, population size, and area type do not affect corruption. This study suggests that fiscal decentralization leaves a greater opportunity for local governments to commit corruption. Thus, to minimize the probability of corruption, an effective internal control system needs to be implemented to monitor the ongoing fiscal decentralization in local governments.