The Influence the Quality of Financial Reporting on Firm Value (Survey on Banks Listed at IDX)

Abstract

This study aims to examine the effect of the quality of financial reporting on corporate value. This study uses explanatory research method, data collection using census approach by distributing questionnaires to 31 banks listed in Indonesia Stock Exchange. The unit of analysis is a bank listed on the Indonesia Stock Exchange with internal audit manager respondents and financial accounting managers. The type of data used is the primary data of questionnaire responses responded by respondents and secondary data obtained from the bank's annual report. Validity test and reliability test conducted to the responses of questionnaires collected for subsequent hypothesis testing. Analysis of hypothesis testing data using path analysis. The results showed that there is influence of financial reporting quality to firm value. The value of the company will be higher if the quality of financial reporting prepared and presented meet the basic concepts, qualitative characteristics of financial statements, recognition and measurement of financial statements.