Can Audit Committee Quality in Moderating Effect of Ownership Structure on Accounting Prudence?

Abstract

This present study aimed to analyze the influence of foreign ownership, the ownership of institutional ownership of managerial and ownership concentration on accounting prudence moderated by audit committee quality. The population of this research is LQ45 indexed companies in the Indonesia Stock Exchange (IDX), in 2016-2018 there were 59 companies. Based on the purposive sampling method, samples that met the criteria of 46 companies. The final analysis unit is 105 units. The analytical method used is multiple linear regression moderation with IBM SPSS 25. The results of this study indicate foreign ownership, institutional ownership, and concentration of ownership have a positive and significant effect on accounting prudence. Managerial ownership has a significant and negative effect on accounting prudence. Audit committee quality is able to moderate (strengthen) the effect of foreign, institutional and concentration of ownership on accounting prudence. Audit committee quality is able to moderate (weaken) the effect of managerial ownership on accounting prudence.