Effect of Financial Statements Quality on Information Asymmetry and Investment Efficiency as Moderating Variable in Mining Companies

Abstract

Efficiency investments made by the internal company is expected to improve the financial statements reporting by the company better than reducing the information asymmetri between internal company and investors. The purpose of this study are determine the effect on the quality of financial statements with information asymmetry and use investment efficiency as a moderating variable. This study uses mining companies that listed on the Indonesia Stock Exchange in 2013-2015. Samples were obtained by 84 companies with nonprobability sampling methods with purposive sampling. Data analysis technique conducted is moderated regression analysis. The result finds that quality of financial reporting has negative effect on information asymmetry. Efficiency investments strengthen the negative effect on the quality of reporting of information asymmetry.

Keywords: investment efficiency, quality of financial reports, information asymmetry

DOI: 10.7176/RJFA/11-8-03

Publication date: April 30^th 2020