Determinant Factors of Bank Financial Reporting Quality; Study at Regional Development Banks in Sumatra

Abstract

This study examined the simultaneous influence of performance credibility, go-public companies, company director with adequate auditing experience, age of CEO, material weakness disclosure, changes in public accountant, connection between CEO with the government, and Good Corporate Governance on the quality of financial reporting of Regional Development Banks in Sumatera. This study also analyzed the partial influences of Independent  variables on the quality of financial statements of Regional Development Banks in Sumatera, and determined the variable with the strongest influence on the quality of financial statements of regional banks in Sumatera. Secondary data were analyzed using logistic regression tests. Sample in this study is all of  Regional Development Banks in Sumatera. The hypotheses of this study consist of three types of tests; Simultaneous Significance Test (F test), Individual Parameter Significance Test (T-test), and Coefficient Determination Test (R2). The results of the data analysis showed that : the first,  performance credibility, go-public companies, company director with adequate auditing experience, age of CEO, changes in public accountant, connection between CEO with the government,  ,material weakness disclosures, and Good Corporate Governance simultaneously affected the quality of financial statements reporting at regional banks in Sumatera. Secondly, material weakness disclosures and Good Corporate Governance had partial influence on the quality of the financial reporting, Meanwhile, performance credibility, go-public companies, directors with auditing experience, age of CEO,  changes in public accountant, and the connection between CEO with the government had  not partial  influence on the quality of the financial reporting. Third, All variable was found   influence significance (65%) on the quality of financial reporting of regional banks in Sumatera.

Keywords: Good corporate governance, public accountant and quality of financial statements

DOI: 10.7176/RJFA/11-17-19

Publication date:October 31^st 2020