Audit Quality: The Role Of Audit Tenure And Audit Committee In The Construction & Material Industry In Indonesia

Kheista Chinta Utama, Pauline Angel Luin, Kenny Fernando — Wed, 01 Apr 2026 00:00:00 +0700

This research aims to analyze the influence of audit tenure and audit committee characteristics on audit quality in companies in the construction and materials sectors listed on the Indonesia Stock Exchange (IDX). Audit quality is measured using Audit Report Lag (ARL), which represents the time difference between the fiscal year-end and the issuance date of the independent audit report, reflecting the efficiency and timeliness of the audit process. The high risk of financial reporting in this sector, combined with several cases of financial statement manipulation by state-owned construction companies in recent years, highlights the importance of strengthening governance mechanisms through external auditors and audit committees. Based on Agency Theory, this study examines how the continuity of the auditor–client relationship and the oversight capacity of the audit committee influence audit timeliness. Using panel data from 31 companies during the period 2019–2024 and applying a Fixed Effects regression model with robust estimation, the results show that audit tenure has a significant negative effect on audit report lag, indicating that longer auditor–client relationships improve audit efficiency and audit quality. In contrast, the audit committee does not exhibit a significant effect on audit quality. Furthermore, firm size and profitability are found to have a positive and significant effect on audit report lag, suggesting that larger and more profitable firms tend to experience longer audit completion due to higher operational complexity, while leverage does not show a significant influence. These findings indicate that audit quality is influenced by both governance mechanisms and firm-specific characteristics, although their effects vary across variables.

Leverage dan Profitabilitas, Manakah yang paling meningkatkan Nilai Perusahaan?

Fidelia Natasya, Yulius Kurnia Susanto, Dicky Supriatna — Thu, 13 Aug 2026 00:00:00 +0700

This study aims to provide empirical evidence on the influence of firm size, leverage, earnings per share, sales growth, firm age, managerial ownership, dividend policy, and profitability on firm value. The object of this research is all manufacturing companies listed on the Indonesia Stock Exchange, for the period 2021 to 2023. The sample selection method is purposive sampling with a total of 46 companies or 138 data used as samples in this study. The analysis was conducted using multiple linear regression. The findings indicate that leverage, sales growth, firm age, and profitability have an effect on firm value. This study uses the age of the company as one of the determinants of the firm's value. High leverage indicates that the company has strong ability to repay debt and utilize it to optimize operations, thereby attracting investors and enhancing the company's value. The longer the firm age, the more it can increase investor confidence in its stability, thereby raising the company's value. Higher profitability serves as a positive signal to investors, indicating promising prospects for the company, which ultimately enhances firm value. In addition, firm size, earnings per share, managerial ownership, and dividend policy do not affect the company's value.

Media Ilmiah Akuntansi

Audit Quality: The Role Of Audit Tenure And Audit Committee In The Construction & Material Industry In Indonesia

Leverage dan Profitabilitas, Manakah yang paling meningkatkan Nilai Perusahaan?