Determinants of compliance with audit committee rules: Evidence from Indonesia

Abstract

The main objective of this study is to investigate the extent of public listed companies compliance with the audit committee rules and to examine the association between Indonesian business characteristics and the compliance of public listed companies with the rules. The results indicate that the compliance of public listed companies with the rules is unsatisfactory. In terms of determinants of the compliance, the different types of family control have a different effect on the compliance of public listed companies with the rules. Additionally, public listed companies with politically connected independent commissioner are less likely to comply with the rules. In contrast, public listed companies with large genuine foreign institutional investors are more likely to comply with the rules.