PENGARUH KARAKTERISTIK KOMITE AUDIT TERHADAP PERSISTENSI LABA

Abstract

Earnings persistence is strategic issue in the field of financial accounting due to its effect on the earnings quality. Many studies on this topic as been done all over the world. However the effect of the gender variable on the earnings persistence is still limited especially using indonesian data. Therefore, this study investigates the effect of the audit committe characteristics on the earnings persistence.  Resource dependent theory and agency theory are used to understand relationship between audit committee characteristic and earnings persistence. This study using manufacturing company listed in the Indonesian Stock Exchange (IDX) during the period of 2010- 2014. Out of 146 companies, 76 companies are selected  becoming a final sample by using purposive sampling method. Secondary data is applied to answer the hypotheses. Data were analyzed using multiple linear regression. Further company size, company age, leverage and profitability are used as a control variable. The result showed that only independency and financial expertise of audit committee have a positive significantly effect on earnings persistence. In addition, company age is negatively associated on the earnings persistence and company size, however, positively influence on the earnings persistence. The most striking result to mark from the data is that, there is no significant role of gender on earnings persistence.

Keyword: Earnings Persistence, Audit Committee Characteristics, Company Size, Company Age, Leverage, ROA