ENTERPRISE RISK MANAGEMENT DAN KUALITAS LABA: PERAN DARI KOMPETENSI AUDIT INTERNAL
Abstract - There is debate whether ERM can improve the quality of financial reporting information or not. This study aims to examine the effect of the level of ERM disclosure on the quality of company earnings which is then moderated by internal audit competence. The sample of this study are companies listed on the Indonesia Stock Exchange during 2019 except for financial sector companies. The results of this study show that the level of ERM disclosure has no effect on earnings predictability, earnings smoothing, and earnings volatility. In addition, internal audit competency moderation does not affect the relationship between the level of ERM implementation and earnings quality as measured by earnings predictability, earnings smoothing, and earnings volatility. The implication of this research is that stricter policies will encourage companies to implement ERM better. Future research can test the level of ERM implementation using a case study approach.
Keywords: Enterprise Risk Management; Implementasi ERM; Kualitas Laba; Earnings Predictability; Earnings Smoothing; Earnings Volatility; Kompetensi Audit Internal.
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike International License (CC-BY-SA 4.0) that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.