Analysis of Influence of Managerial Skills, Company Diversification Policy, Audit Committee, and External Audit and Their Impact on the Financial Reporting Aggressiveness (Study in Public Listed Manufacturing Companies)

Are market competition, customer concentration and company diversification associated with firm value?

“…As a result, diversified companies also give rise to many agency problems, thereby increasing asymmetric information. Kurniawati (2020) explained that diversified companies focus on research and development costs (R&D costs) in developing new segments/divisions. In this case, investment increases information asymmetry and agency costs because these tend to be used as managers' discretionary costs, so management is more aggressive in reporting its financial reports.…”

“…These objectives include creating an internal capital market. It is when a division with high cash flow but limited investment opportunities can finance divisions with low cash flow but have better investment opportunities, creating tax advantages, and providing advantages regarding business integration (Kurniawati, 2020).…”