Ownership, Firm Size and Financial Statement Integrity: Evidence from Property Sector in Emerging Market

Dea Visca Putri Aziza, M. Muhayin A Sidik, Arthie Ardhita Rachman

Abstract


This research looks at the elements that influence the integrity of financial statements in property and real estate businesses listed on the Indonesia Stock Exchange (IDX) between 2020 and 2023. Using a quantitative methodology and secondary data, the study especially investigates the influence of institutional ownership, managerial ownership, firm size, and leverage on financial statement integrity. Purposive sampling was used to choose a sample of 24 firms, giving 96 observations per company year. After removing outliers, 80 usable data points were evaluated using SPSS multiple linear regression. The data shows that institutional ownership, management ownership, and firm size have a considerable influence on financial statement integrity. However, leverage was shown to have no meaningful impact. These findings emphasize the relevance of ownership arrangements and firm size in encouraging open and accurate financial reporting in the Indonesian property and real estate industry.


Keywords


Institutional Ownership, Managerial Ownership, Firm Size, Leverage, Financial Statement Integrity

Full Text:

PDF

References


Abdel-Halim, A. M. S., Fallatah, M., AlKhars, M., & Barahona, I. (2025). Corporate Sustainability Accounting and Reporting Practices in the Saudi Petrochemicals Sector: A Stakeholder Salience Approach Using the Best-Worst Method. Journal of Financial Reporting and Accounting. https://doi.org/10.1108/JFRA-10-2024-0767.

Arian, A., & Sands, J. S. (2024). Corporate Climate Risk Disclosure: Assessing Materiality and Stakeholder Expectations for Sustainable Value Creation. Sustainability Accounting, Management and Policy Journal, 15(2), 457-481. https://doi.org/10.1108/SAMPJ-04-2023-0236.

Azaro, K., Djajanto, L., & Sari, P. A. (2020). The Influence of Financial Ratios and Firm Size on Firm Value (An Empirical Study on Manufacturing Companies Sector Consumers Goods Industry Listed in Indonesian Stock Exchange in 2013–2017). 1st Annual Management, Business and Economic Conference (AMBEC 2019), 142-147. https://doi.org/10.2991/aebmr.k.200415.028.

Beaver, W. H., & Ryan, S. G. (2000). Biases and Lags in Book Value and Their Effects on the Ability of the Book-to-Market Ratio to Predict Book Return on Equity. Journal of Accounting Research, 38(1), 127-148. https://doi.org/10.2307/2672925.

Comunale, C. L., Sexton, T. R., & Gara, S. C. (2006). Professional Ethical Crises: A Case Study of Accounting Majors. Managerial Auditing Journal, 21(6), 636-656. https://doi.org/10.1108/02686900610674906.

Ecim, D., & Maroun, W. (2025). A Review of Integrated Reporting Practices of JSE-Listed Companies: Evidence of Integrated Thinking. Journal of Accounting in Emerging Economies. https://doi.org/10.1108/JAEE-01-2024-0008.

Eftasari, N. D., & Sarumpaet, S. (2025). The Effect of Leverage on Financial Performance with Financial Distress Risk as a Moderating Variable in Oil, Gas, and Coal Sub-Sector Companies Listed on the Indonesia Stock Exchange for the 2020–2023 Period. International Journal of Economics and Management Sciences, 2(2), 307-317. https://doi.org/10.61132/ijems.v2i2.831.

Fajaryani, A. (2015). Analisis Faktor-Faktor yang Mempengaruhi Integritas Laporan Keuangan (Studi Empiris pada Perusahaan Pertambangan yang Terdaftar di Bursa Efek Indonesia Periode 2008-2013). Nominal: Barometer Riset Akuntansi dan Manajemen, 4(1), 67-82. https://doi.org/10.21831/nominal.v4i1.6888.

Fatimah, S., Agustinawati, N. P., & Petro, S. (2020). Pengaruh Mekanisme Corporate Governance, Audit Tenure, Ukuran Perusahaan dan Leverage terhadap Integritas Laporan Keuangan (Studi Empiris pada Perusahaan BUMN yang Terdaftar di Bursa Efek Indonesia). Neraca: Jurnal Pendidikan Ekonomi, 5(2), 1-13. https://doi.org/10.33084/neraca.v5i2.1418.

Fatin, A. N., & Suzan, L. (2022). Pengaruh Ukuran Perusahaan, Leverage, Komisaris Independen dan Kepemilikan Manajerial terhadap Integritas Laporan Keuangan. Fair Value: Jurnal Ilmiah Akuntansi dan Keuangan, 5(2), 733-741. https://doi.org/10.32670/fairvalue.v5i2.2110.

Faza’, M., Badwan, N., & Hamdan, M. (2024). The Audit Expectations Gap Firms Listed on the Palestine Stock Exchange: Empirical Evidence on Palestinian Stakeholders. Journal of Islamic Accounting and Business Research. https://doi.org/10.1108/JIABR-12-2023-0431.

Ghozali, I. (2018). Aplikasi Analisis Multivariate dengan Program IBM SPSS 25 (Edisi 9). Badan Penerbit Universitas Diponegoro.

Hasanah, S., Indrawati, N., & Mela, N. F. (2025). The Effect of Financial and Environmental Performance on Firm Value: The Moderating Role of Ownership Structure. Jurnal Magister Akuntansi Trisakti, 12(1), 65-82. https://doi.org/10.25105/v12i1.22396.

Hifnelda, M., & Sasongko, N. (2021). Analisis Faktor-Faktor yang Mempengaruhi Integritas Laporan Keuangan. Repository Horizon University Indonesia, 4(1), 528-535. https://repository.horizon.ac.id/items/show/6410.

Izdihar, A. P., & Karmudiandri, A. (2022). Faktor-Faktor yang Memengaruhi Integritas Laporan Keuangan. Konferensi Ilmiah Akuntansi IX, 9(1), 176–189. https://doi.org/ 10.24036/jea.v5i4.1137.

Jensen, M. C., & Meckling, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4), 305-360. https://doi.org/10.1016/0304-405X(76)90026-X.

Jugnandan, S., & Willows, G. D. (2022). “It’s a Long Story…” – Impression Management in South African Corporate Reporting. Accounting Research Journal, 35(5), 581-597. https://doi.org/10.1108/ARJ-07-2021-0209.

Kassem, R., & Omoteso, K. (2024). Effective Methods for Detecting Fraudulent Financial Reporting: Practical Insights from Big 4 Auditors. Journal of Accounting Literature, 46(4), 587-610. https://doi.org/10.1108/JAL-03-2023-0055.

Kieso, D. E., Weygandt, J. J., Warfield, T. D., Wiecek, I. M., & McConomy, B. J. (2019). Intermediate Accounting (Volume 2). United States: John Wiley & Sons.

Kusnadi, Y., Yang, Z., & Zhou, Y. (2015). Institutional Development, State Ownership, and Corporate Cash Holdings: Evidence from China. Journal of Business Research, 68(2), 351-359. https://doi.org/10.1016/j.jbusres.2014.06.023.

Majeed, R. H., & Taha, A. A. D. (2024). A Survey Study of Iraqi Auditors’ Adoption of Blockchain Technology. Asian Review of Accounting, 32(3), 521-546. https://doi.org/10.1108/ARA-01-2023-0015.

Marlinda, C., Satria, H., Utami, R., Kurnia, S., & Sahara, M. A. (2022). Financial Statement Integrity: Corporate Governance and Quality Audit Evidence from Food and Beverage Companies in Indonesia. Penanomics: International Journal of Economics, 1(1), 27-40. https://doi.org/10.56107/penanomics.v1i1.3.

Mertzanis, C., Balntas, V., & Pantazopoulos, T. (2020). Internal Auditor Perceptions of Corporate Governance in Greece After the Crisis. Qualitative Research in Accounting & Management, 17(2), 201-227. https://doi.org/10.1108/QRAM-07-2018-0045.

Morck, R., Shleifer, A., & Vishny, R. W. (1988). Management Ownership and Market Valuation: An Empirical Analysis. Journal of Financial Economics, 20, 293-315. https://doi.org/10.1016/0304-405X(88)90048-7.

Muchram, M., Sari, P. I., & Amran, A. (2022). The Influence of the Quality of Financial Statements on Performance Accountability in Government Agency in the Province Regional Revenue Agency South Sulawesi. JASa (Jurnal Akuntansi, Audit dan Sistem Informasi Akuntansi), 6(2), 189-201. https://doi.org/10.36555/jasa.v6i2.1918.

Novianti, S., & Isynuwardhana, D. (2021). Pengaruh Komisaris Independen, Leverage, Dan Kepemilikan Institusional Terhadap Integritas Laporan Keuangan. JPAK: Jurnal Pendidikan Akuntansi dan Keuangan, 9(1), 64-73. https://doi.org/10.17509/jpak.v9i1.27003.

Novitasari, N. L. G., & Martani, N. W. J. (2022). Analisis Faktor-Faktor yang Mempengaruhi Integritas Laporan Keuangan pada Perusahaan Perbankan. Journal of Applied Management and Accounting Science, 3(2), 148-161. https://doi.org/10.51713/jamas.v3i2.59.

Omidiji, A., Ehalaiye, D., Gyapong, E., & Redmayne, N. B. (2025). Internal Audit, Loan Losses, and Financial Performance in Microfinance Institutions- A Global Evidence. China Accounting and Finance Review, 27(3), 364-396. https://doi.org/10.1108/CAFR-05-2024-0063.

Putri, M. N., Gustati, G., & Andriani, W. (2022). Faktor-Faktor yang Mempengaruhi Integritas Laporan Keuangan (Studi Kasus pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2017-2020). Jurnal Akuntansi, Bisnis dan Ekonomi Indonesia (JABEI), 1(1), 8-14. https://doi.org/10.30630/jabei.v1i1.6.

Rivandi, M., & Pramudia, M. H. (2022). Pengaruh Kepemilikan Institusional dan Ukuran Perusahaan terhadap Integritas Laporan Keuangan pada Perusahaan Property dan Real Estate. INOBIS: Jurnal Inovasi Bisnis dan Manajemen Indonesia, 5(2), 255-269. https://doi.org/10.31842/jurnalinobis.v5i2.228.

Saad, B., & Abdillah, A. F. (2019). Analisis Pengaruh Ukuran Perusahaan, Leverage, Audit Tenure, dan Financial Distress terhadap Integritas Laporan Keuangan. Oikonomia: Jurnal Manajemen, 15(1), 70-85. https://doi.org/10.47313/oikonomia.v15i1.645.

Saksakotama, P. H., & Cahyonowati, N. (2014). Determinan Integritas Laporan Keuangan Perusahaan Manufaktur di Indonesia. Diponegoro Journal of Accounting, 3(2), 898-921.

Samagaio, A., Francisco, P. M., & Felício, T. (2024). The Relationship Between Soft Skills, Stress and Reduced Audit Quality Practices. Review of Accounting and Finance, 23(3), 353-374. https://doi.org/10.1108/RAF-06-2023-0186.

Savitri, E. (2016). Konservatisme Akuntansi: Cara Pengukuran, Tinjauan Empiris dan Faktor-Faktor yang Mempengaruhinya. Yogyakarta: Pustaka Sahila Yogyakarta.

Shleifer, A., & Vishny, R. W. (1997). A Survey of Corporate Governance. The Journal of Finance, 52(2), 737-783. https://doi.org/10.2307/2329497 .

Sinulingga, J. Y. I., Wijaya, S. Y., & Wibawaningsih, E. J. (2020). Pengaruh Kepemilikan Institusional, Kepemilikan Manajerial dan Ukuran Kantor Akuntan Publik terhadap Integritas Laporan Keuangan. Jurnal Syntax Transformation, 1(8), 472-480. https://doi.org/10.46799/jst.v1i8.123.

Siregar, Y., & Lestari, N. A. (2019). Analisis Penerapan Pernyataan Standar Akuntansi Keuangan (PSAK) No. 44 terhadap Pengembangan Real Estat PT. Buana Cipta Propertindo. EQUILIBIRIA: Jurnal Fakultas Ekonomi, 6(1), 1-13. https://doi.org/10.33373/jeq.v6i1.1885

Sugiyono, S. (2019). Metode Penelitian Kuantitatif, Kualitatif, dan R&D. Alfabeta.

Sunyoto, D. (2016). Metodologi Penelitian Akuntansi. PT Refika Aditama.

Suzan, L., & Rizaldi, V. R. (2024). Factors Affecting the Integrity of Property and Real Estate Company Financial Statement. Jurnal Akuntansi, 28(1), 1-20. https://doi.org/10.24912/ja.v28i1.1642.

Tamara, A. N. P., & Kartika, A. (2021). Pengaruh Kepemilikan Institusional, Kepemilikan Manajerial, dan Komite Audit terhadap Integritas Laporan Keuangan. JIMAT (Jurnal Ilmiah Mahasiswa Akuntansi) Undiksha, 12(2), 647–656. https://doi.org/10.23887/jimat.v12i2.37654.

Tantawy, S. M., & Moussa, T. (2023). The Effect of Political Connections on Firms’ Auditor Choice Decisions and Audit Opinions: Evidence from Egypt. Asian Review of Accounting, 31(3), 414-436. https://doi.org/10.1108/ARA-07-2022-0161.




DOI: https://doi.org/10.21107/jaffa.v13i2.31306

Refbacks

  • There are currently no refbacks.


Our Journal indexed by:



Our support tools using:

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.