Analysis of Influencing Factors: Integrity of Financial Reporting

Study on Mining Companies Listed on the Indonesia Stock Exchange for the Period 2018-2021

Abstract

This study aims to analyze the effect of managerial ownership, institutional ownership, leverage and company size on the integrity of financial statements in mining companies for the 2018-2021 period which are listed on the Indonesia Stock Exchange (IDX). The sample selection in this study used purposive sampling, namely the selection of samples based on certain criteria. The data used in this study is secondary data which consists of financial reports on 21 mining companies on the Indonesia Stock Exchange (IDX). The data collection technique used in this study is the documentation technique. The analytical tools used in this study were descriptive statistics, classical assumption tests (normality, multicollinearity, autocorrelation and heteroscedasticity), multiple linear regression tests, and hypothesis testing (f test, r2 test and t test). Based on the results of these studies, the conclusions are drawn as follows: 1) Managerial ownership and leverage have no significant effect on the integrity of financial statements. 2) Meanwhile, institutional ownership and company size have a significant effect on the integrity of financial reports for mining companies for the 2018-2021 period which are listed on the Indonesia Stock Exchange (IDX). All independent variables in this study simultaneously affect the integrity of financial statements. Managerial ownership, institutional ownership, leverage, and company size have an influence on the integrity of financial statements by 15.9% while 84.1% are influenced by other factors outside the variables of this study.