The Role of Company Characteristics in the Quality of Financial Reporting in Indonesian

  • Abdul Nasser Hasibuan Institut Agama Islam Negeri Padangsidimpuan, Indonesia


This study aimed to explain the role of company characteristics in shaping the quality of financial reporting in Indonesia, either simultaneously or partially, analyzed using Structural Equation Modeling. This study found that simultaneously structural characteristics, monitoring characteristics, and performance characteristics had a significant influence on the quality of financial reporting. While partially the characteristics of the structure and characteristics of monitoring had a significant influence on the quality of financial reporting. Meanwhile, performance characteristics did not influence the quality of financial reporting. It can be concluded that quality financial reporting can form good company characteristics and increase company performance, and can increase market response or market confidence in the current pandemic situation. The paper provides insight for the company to more concentrate on monitoring, structural, and performance to gain a good quality of financial reporting.


Chaudhary, M. K. (2021). The Covid-19’s Negative Impacts on Nepalese Economy with a South Asian Perspective: Strategic Response on Post Pandemic Control. Jurnal Ilmiah Peuradeun, 9(1), 39.
Chen, F., Hope, O.-K., Li, Q., & Wang, X. (2012). Financial Reporting Quality and Investment Efficiency of Private Firms in Emerging Markets. SSRN Electronic Journal.
Cohen, D. A. (2005). Quality of Financial Reporting Choice: Determinants and Economic Consequences. SSRN Electronic Journal.
Easley, D., & O’Hara, M. (2004). Information and the cost of capital. Journal of Finance, 59(4), 1553–1583.
Fanani, Z. (2009). Kualitas Pelaporan Keuangan: Berbagai Faktor Penentu dan Konsekuensi Ekonomis. Jurnal Akuntansi Dan Keuangan Indonesia.
Hasibuan, A. N., Lubis, A. F., Hasyim, S., & Sadalia, I. (2017). Effects of auditor quality on market-based and accounting-based financial statement quality and its impacts on economic consequences (a case on Indonesia capital market). International Journal of Economic Research.
Hidayat, W., & Elisabet, E. (2010). Faktor-Faktor yang Mempengaruhi Kualitas Pelaporan Keuangan Pada Perusahaan Manufaktur yang Go Public di Indonesia. Jurnal Ekonomi Universitas Esa Unggul.
Hirasawa, T., & Kuratani, S. (2013). A new scenario of the evolutionary derivation of the mammalian diaphragm from shoulder muscles. Journal of Anatomy, 222(5), 504–517.
Klein, A. (2002). Audit committee, board of director characteristics, and earnings management. Journal of Accounting and Economics.
Lambert, R., Leuz, C., & Verrecchia, R. E. (2007). Accounting information, disclosure, and the cost of capital. Journal of Accounting Research.
Li, Q., & Wang, T. (2010). Financial reporting quality and corporate investment efficiency: Chinese experience. Nankai Business Review International.
Sari, N. (2018). Service Quality, Company Image, Trust and Its Influence On Customers’ Satisfaction and Loyalty at Bank Shariah Mandiri (BSM) Meulaboh Branch Office. Jurnal Ilmiah Peuradeun, 6(2), 235-252. doi:10.26811/peuradeun.v6i2.221
Sitorus, M. (2018). The Influence of Election Supervisory Behavior on the Performance of the Regional Head Election Organizer in North Sumatera Province. Jurnal Ilmiah Peuradeun, 6(1), 67-84. doi:10.26811/peuradeun.v6i1.181
Scott, W. R. (2015). Financial Accounting Theory 7th Edition. In Financial Accounting Theory.
Smulowitz, S., Becerra, M., & Mayo, M. (2019). Racial diversity and its asymmetry within and across hierarchical levels: The effects on financial performance. Human Relations, 72(10), 1671–1696.
How to Cite
HASIBUAN, Abdul Nasser. The Role of Company Characteristics in the Quality of Financial Reporting in Indonesian. Jurnal Ilmiah Peuradeun, [S.l.], v. 10, n. 1, p. 1-12, jan. 2022. ISSN 2443-2067. Available at: <>. Date accessed: 03 june 2023. doi: