Proceedings of the 4th Asia Pacific Management Research Conference (APMRC 2022)

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Board of Directors Diversity, Public Ownership, and Earnings Quality

Authors
Hana Budiyati1, Hendra Wijaya1, *
1Universitas Katolik Widya Mandala Surabaya, Surabaya, Indonesia
*Corresponding author. Email: hendrawijaya@ukwms.ac.id
Corresponding Author
Hendra Wijaya
Available Online 12 December 2022.
DOI
10.2991/978-94-6463-076-3_50How to use a DOI?
Keywords
Diversity; Board of Directors; Public Ownership; Earnings Quality
Abstract

Earnings quality is one of the indicators to assess the level of success of the company’s operations. Many factors affect earnings quality, one of which is the diversity of the company’s board of directors and public ownership. This study examines the effect of board diversity, including gender, age, tenure, educational background, and public ownership, on earnings quality. The research objects are public companies listed on the Indonesia Stock Exchange from 2015–2019. The sample used is 113 manufacturing companies selected with the purposive sampling technique. The analytical technique used in this research is multiple linear regression analysis. The data source is obtained from the annual reports of manufacturing companies listed on the Indonesia Stock Exchange (IDX). This study shows that board age has a negative effect on earnings quality and indicated that diversity of age shows different ways of thinking and working leads to lower earning quality. This study also shows that public ownership has a positive effect on earnings quality and indicated that the existence of public shareholders can reduce agency conflicts and shown through better earning quality. Meanwhile, gender, tenure, and educational background of the board do not affect earnings quality.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 4th Asia Pacific Management Research Conference (APMRC 2022)
Series
Advances in Economics, Business and Management Research
Publication Date
12 December 2022
ISBN
978-94-6463-076-3
ISSN
2352-5428
DOI
10.2991/978-94-6463-076-3_50How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Hana Budiyati
AU  - Hendra Wijaya
PY  - 2022
DA  - 2022/12/12
TI  - Board of Directors Diversity, Public Ownership, and Earnings Quality
BT  - Proceedings of the 4th Asia Pacific Management Research Conference (APMRC 2022)
PB  - Atlantis Press
SP  - 649
EP  - 663
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-076-3_50
DO  - 10.2991/978-94-6463-076-3_50
ID  - Budiyati2022
ER  -