Imam Subekti

This research aims at testing the influence of performance evaluation of efficiency focus, performance evaluation of quality focus and task complexity on dysfunctional auditor behavior (DAB), the influence of task complexity (TC) on turnover intention (TI) and the influence of task complexity on dysfunctional auditor behavior (DAB), which is mediated by turnover intention. This research is conducted to auditors of Public Accountant Offices (PAO) in cities in Jakarta, East Java, South Sulawesi and Bali using 262 respondents as its sample and PLS-SEM analysis. The results of this research indicate that the performance evaluation of efficiency focus and task complexity has a positive influence on DAB, and the performance evaluation of quality focus has a negative influence on DAB. Furthermore, task complexity has a positive influence on turnover intention and turnover intention also partially mediates the influence of task complexity on DAB. This research is interesting, since the idea of developing the variable performance evaluation of efficiency focus by adding the ratcheting budget indicator proves that the testing of performance evaluation of increasingly higher efficiency focus increases DAB and the idea of including the variable of turnover intention proves that it can mediate the influence of task complexity on DAB.

This study investigates the influence of the independent board of commissioners and audit committee on earnings management to achieve earning targets in Indonesian banking. The research sample was drawn from 33 banks listed on the Indonesia Stock Exchange from 2012 to 2022 to evaluate the time frame of the study and its relevance to current banking trends in Indonesia, as well as to examine the data sources used and their reliability. The data analysis method used in this study is a dummy variable regression model. The findings reveal significant insights into the motivations behind earnings management practices. Specifically, this study finds that managers engage in earnings management to meet profit targets, thereby signaling strong performance to stakeholders and potentially securing bonuses. Notably, the influence of corporate governance structures varies: while the independent board of commissioners demonstrates no significant effect on earnings management (p = –0.01), the audit committee plays a pivotal role, significantly influencing earnings management practices (p = –0.017). Moreover, the analysis uncovers that company size has a significant impact on earnings management (p = 0.002), while return on assets (ROA) does not. This study provides empirical evidence demonstrating the efficacy of audit committees in curbing managerial incentives for earnings management to meet targets. Furthermore, by quantifying the influence of corporate governance mechanisms and firm characteristics on earnings management, this study sheds light on key dynamics in the Indonesian banking industry.

This study examines the impact of corporate governance on the probability of financial statement fraud and evaluates the moderating role of financial distress in this relationship. This issue remains highly relevant given the persistence of fraudulent financial practices despite evolving governance regulations. The analysis is conducted on a sample of 330 non-financial companies listed on the Indonesia Stock Exchange from 2021 to 2022. Using purposive sampling and secondary data, the study measures financial statement fraud with the F-score, corporate governance through institutional ownership, ineffective monitoring, regulatory compliance, and financial distress using the Zmijewski model. The study applies moderated regression analysis across three models. The results from Model 1 show that corporate governance has a significant negative effect on the likelihood of financial statement fraud (β = –0.085; p < 0.05). Model 2 finds that financial distress alone has a significant positive effect (β = 0.315; p < 0.05). Model 3 confirms a significant moderation effect, where financial distress strengthens the relationship between governance and fraud (interaction β = 0.353; p < 0.05). These findings indicate that while effective governance can reduce fraudulent financial reporting, this effect is influenced by a company’s financial state. Therefore, robust governance structures are vital, particularly in times of financial hardship. Future studies should consider external institutional mechanisms to further understand these dynamics.