DOI
10.21002/jaki.2005.07
Abstract
The purpose o f our study is to empirically investigate the relation between certain corporate governance mechanisms and the likelihood o f a company having accounting problem, as evidenced by a misstatement o f its earnings. We use public listed firms in JSE as our sample, with total samples o f 160 firms-years. Our study finds that proportion o f independent board, proportion o f institutional ownership, and audit quality is significantly have negative relationship with the probability o f restatement. These results suggest that those governance mechanisms are able to prevent misstated financial misstatement. But, we find that three governance mechanisms - board size, existence o f audit committee, and block holders - do not have significant relationship with the probability o f restatement.
Recommended Citation
Siregar, Sylvia Veronica and Bachtiar, Yanivi S.
(2005)
"THE ROLE OF CORPORATE GOVERNANCE IN PREVENTING MISSTATED FINANCIAL STATEMENT,"
Jurnal Akuntansi dan Keuangan Indonesia: Vol. 2:
No.
1, Article 7.
DOI: 10.21002/jaki.2005.07
Available at:
https://scholarhub.ui.ac.id/jaki/vol2/iss1/7
