e-ISSN 2231-8534
ISSN 0128-7702
Muhammad Khafid and Sandy Arief
Pertanika Journal of Social Science and Humanities, Volume 25, Issue S, November 2017
Keywords: Corporate governance, earnings quality, institutional ownership, managerial ownership
Published on: 7 May 2018
The purposes of this study are first, to analyse the influence of corporate governance structure and ownership structure on earnings quality and second, to examine the role of institutional ownership on the causal relationship between managerial ownership and market outcomes. The sample of the study was 242 companies from 430 companies listed on the Indonesia Stock Exchange (IDX) using purposive sampling technique. Data analysis technique used moderating variables regression with institutional ownership. The results showed board composition of directors and managerial ownership significantly affected market outcomes. The number of audit committees did not affect significantly market outcomes while institutional ownership did not affect significantly the profit but as a moderating variable, institutional ownership significantly improved the effects of managerial ownership on earnings quality. Accounting-based profit quality is reflected by the solid profit persistence and predictability.
ISSN 0128-7702
e-ISSN 2231-8534
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