Proceedings of the 3rd International Conference on Banking, Accounting, Management and Economics (ICOBAME 2020)

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Examining Community Trust to the Audit Board of the Republic of Indonesia

Authors
Penta Widyartati, Tri Jatmiko Wahyu Prabowo
Corresponding Author
Penta Widyartati
Available Online 13 March 2021.
DOI
10.2991/aebmr.k.210311.052How to use a DOI?
Keywords
supervision, investor response, volatility
Abstract

The second term of Audit Results Summary Report (IHPS) of Audit Board of the Republic of Indonesia or Badan Pemeriksa Keuangan (BPK) concluded that the implementation of commercial bank supervision by OJK for 2017-2019 has met the criteria with exceptions. The exception occurred in the incomplete supervision for several banks. This study aims to determine whether the negative opinion of the BPK has been responded by investors. The research was conducted by comparing the volatility of banks that are excepted by the BPK with the banks that are not excepted by the BPK. The sample of banks that are excepted by the BPK was represented by 4 banks and the banks that are not excepted by the BPK were represented by 31 Banks. The test was carried out using a non-parametric independence t test. The test results show that there is a significant difference between the volatility of banks that are excepted by the BPK and banks that are not excepted by the BPK. The existence of this significant difference provides empirical evidence that investors respond to the negative opinion of BPK. This response shows that the BPK’s opinion is trusted and is considered to provide adequate information for investors.

Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 3rd International Conference on Banking, Accounting, Management and Economics (ICOBAME 2020)
Series
Advances in Economics, Business and Management Research
Publication Date
13 March 2021
ISBN
978-94-6239-350-9
ISSN
2352-5428
DOI
10.2991/aebmr.k.210311.052How to use a DOI?
Copyright
© 2021, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Penta Widyartati
AU  - Tri Jatmiko Wahyu Prabowo
PY  - 2021
DA  - 2021/03/13
TI  - Examining Community Trust to the Audit Board of the Republic of Indonesia
BT  - Proceedings of the 3rd International Conference on Banking, Accounting, Management and Economics (ICOBAME 2020)
PB  - Atlantis Press
SP  - 264
EP  - 268
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.210311.052
DO  - 10.2991/aebmr.k.210311.052
ID  - Widyartati2021
ER  -