Quality of financial reporting: the role of performance and economic consequences

Hasibuan, Abdul Nasser and Nofinawati, Nofinawati and Windari, Windari and Efendi, Sulaiman and Khairiyahtussolihah, Assa'adatul (2024) Quality of financial reporting: the role of performance and economic consequences. Quality - Access to Success, 25 (203). pp. 368-374. ISSN 2668-4861

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Abstract

This study aims to examine the role of accounting financial reporting quality on performance and economic
consequences of companies in Indonesia. The research was conducted using the SEM (Structural Equation Model)
analysis technique with an alternative least squares method. By analyzing the relationship pattern between latent
constructs and their indicators, latent constructs with each other, and direct measurement errors. This study uses
secondary data sources on manufacturing companies listed on the Indonesia Stock Exchange. The sample of this
research is 100 companies with the sampling method using probability sampling. The results of this study produce
several conclusions where the company's performance has no influence on the quality of market-based financial
reporting, while company performance has a significant influence on the quality of accounting-based financial
reporting. As well as for the intervening effect of company performance variables on economic consequences with
the intervening variable quality of market-based financial reporting and accounting, it has a significant influence
where the contribution of market-based financial reporting quality and accounting is quite large rather than its direct
influence.

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