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)

Abstract

The study is aimed to examine and analyze the influence of managerial skills, company diversification policy, audit committee, and external audit and their impact on the financial reporting aggressiveness. Analysis of regression used in the research is using the panel data approach through purposive sampling on the manufacturing companies listed on the Stock Exchange the period 2006-2017. Results of the study showed that partially company diversification policy and audit committee influence positively and significantly to financial reporting aggressiveness. Meanwhile, managerial skill and external audit partially do not impact significantly on the financial reporting aggressiveness. The research findings also show that managerial skills, diversification policies, audit committees, and external audits have a significant effect simultaneously on the aggressiveness of financial reporting.