How can Corporate Governance and Accountant Creativity Determine the Quality of Financial Reports? Eka Bertuah- R.A. Nurlinda
Faculty of Economics and Business
Universitas Esa Unggul
Abstract
This study examines the application of the principles of good corporate governance to the prevention of accounting creativity that leads to fraudulent financial statements and how it impacts the quality of financial statements at Non-SOE banks that have been listed on the IDX. This study uses 150 accountants who have the main task of preparing financial statements. This study uses path analysis tools with SEM PLS. The results prove that good corporate governance affects the prevention of accounting creativity towards fraud, but cannot directly affect the quality of financial reporting. The results also prove that the prevention of accounting creativity towards fraud can mediate good corporate governance on the quality of financial reporting. This research contributes to the scientific field of financial management by building a model for detecting the quality of financial reporting based on the implementation of corporate governance by the company. This model detects the possibility of unethical creative actions taken, which have an impact on the quality of financial reporting. This study also provides evidence of empirical testing of Stewardship Theory which is reflected in the harmonization between capital owners (principles) and capital managers (stewards) in achieving common goals, but also implicitly reflects how accounting builds a construct of leadership patterns and communication relationships between shareholders and management.
