Covid 19 Outbreak and Financial Statement Quality: Evidence from Central Java

Abstract

This study aims to analyze and find empirical evidence that the Covid 19 pandemic will affect the quality of financial reports and what factors affect the quality of government financial reports. The variables used in this study are competence, compliance with government accounting standards, external pressures, environmental uncertainty, internal control systems, and the quality of financial reports. The population of this study was accounting or finance staff who served in 48 SKPDs in the Central Java Provincial Government. The sampling technique used was simple random sampling, this sampling technique was chosen because the study population was homogeneous. Analysis of research data using the WarpPLS 7.0 application as well as used for hypothesis testing. The results show that competence, compliance with government accounting standards has a positive effect on the quality of financial reports, while external pressure has no effect and environmental uncertainty has a negative effect on the quality of financial reports. Internal control is able to strengthen the relationship between competency variables and compliance variables with the quality of financial reports and weaken the relationship between internal pressure variables and environmental uncertainty variables on the quality of local government financial reports. The implication of this research is that the quality of financial reports can be achieved when the work structure has good competence, complies with government accounting standards, is able to anticipate uncertainty and applies internal controls properly.

The Effect of Human Resources Competence, Information Technology Utilization, and Data Reconciliation on The Quality of Financial Reports with Organizational Commitment as a Moderating Variable

“…The results of this study support the previous research results which state that the use of IT has a positive and significant effect on the quality of financial reports (Cahyani, 2023;Kuntadi & Puspita, 2023;Prasetyo, 2015;Wahyuni et al, 2018). However, the results of this study are not in line with the results of similar research which empirically proves that the use of IT does not affect the quality of financial reports (Erin & Adegboye, 2021;Nurcahyono et al, 2021).…”

Factors Affecting Financial Statement Fraud in Banking Sector: A Agency Perspective

“…Thus, the second hypothesis is rejected. Financial stability is a condition that describes the company's financial condition as a stable condition (Jamil & Yudowati, 2019;Nurcahyono, Sukesti, et al, 2021;Permata et al, 2021). This test does not fit the agency's theory that financial stability negatively affects financial statement fraud.…”

Transparent Reporting on Financial Assets as a Determinant of a Company’s Value—A Stakeholder’s Perspective during the SARS-CoV-2 Pandemic and beyond

“…The research results showed the reduced credibility of financial statements during the SARS-CoV-2 pandemic. Nurcahyono, Sukesti, and Alwiyah [71] studied whether the SARS-CoV-2 pandemic affected the quality of financial statements and what factors affected the quality of government financial statements. It was found that the pandemic affected this quality, with environmental uncertainty being the primary negative factor.…”