Azwardi, Associate Professor, Faculty of Economics, Sriwijaya University, Indonesia

ORCID ID: 0000-0003-0066-2445
e-mail: azwardi_unsri@yahoo.com

Kartasari Shelly F., Lecturer (Accounting), Faculty of Economics, Sriwijaya University, Indonesia

ORCID ID: 0000-0001-9572-6573
e-mail: Shellyfebrianakartasari@fe.unsri.ac.id

Putri Ahmy Nurazizah, Magister Student, Faculty of Economics, Sriwijaya University, Indonesia

ORCID ID: 0000-0003-3835-7155
e-mail: izahvp@gmail.com

Determinants of Internet Financial Reporting Quality

Abstract. Introduction. Internet Financial Reporting (IFR) is a requirement for companies to provide high-quality financial reports and technology as a corporate responsibility to the principles of good corporate governance and to demonstrate that management have adopted those principles. As a result, it is important to ascertain the aspects that may affect the quality of IFR. This study uses secondary data from annual reports that will be listed on the Indonesian Stock Exchange (IDX) in 2020, as well as each company’s official website. The study sampled 66 property, real estate, and building construction firms that were listed on the IDX. Eviews 20 were used to test this research hypothesis.

Purpose. The purpose of this study is to determine the relationship of company size, age, audit committee composition, public shareholding, and auditor quality on the quality of IFR for property, real estate, and building construction companies listed on the IDX in 2020.

Results. The findings indicated that company size, company age, and public shareholding all influenced IFR quality, but that audit committee and auditor quality had no effect. Simultaneously, company size, company age, the composition of the audit committee, public shareholding, and the quality of the auditor all influence the quality of IFR.

Conclusions. IFR is important in times and circumstances like these, when the high number of COVID-19 cases necessitates that all activities be conducted via internet information technology. IFR is one of the mandatory methods for companies to submit annual financial reports to investors, as required by Law 40 of 2007 on provisions for reporting ongoing business activities and Financial Services Authority Regulation 8/ POJK.4/2015 on issuers’ or public companies’ websites. Given our constraints, it is advised that future researchers analyze additional organizations using a larger sample size and a longer time of observation, as well as conducting observations and interviews with the companies under study.

Keywords: Agency Theory; Signaling Theory; IFR Quality; Company Size; Company Age; Audit Committee; Public Shareholding; Auditor Quality.

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