Determinants of Financial Report Restatement with Audit Quality as Moderating Variable: Manufacturing Companies Listed in Indonesia Stock Exchange

Abstract

The purpose of this study was to analyze the effect of profitability, leverage, institutional ownership on financial restatement with audit quality as a moderating variable in manufacturing companies listed on the Indonesia Stock Exchange for the period 2016-2020. The population in this study were all manufacturing companies listed on the Indonesia Stock Exchange period 2016 to 2020. Sampling technique uses purposive sampling, obtained a sample of 129 companies. The data analysis method used is logistic regression. The results show that profitability has a negative effect on the probability of financial restatement.  Leverage and institutional ownership do not effect on the probability of financial restatement.  Audit quality could not moderate the influence of profitability, leverage and institusional ownership on the probability of financial restatement. Additional analysis reveals that institutional ownership is the difference between restatement and non restatement companies.