TY - JOUR
T1 - The relationship between audit quality, earnings and equity book value relevance
AU - Solikha, Evilia Mayasari
AU - Mardijuwono, Agus Widodo
N1 - Publisher Copyright:
© 2020 Primrose Hall Publishing Group.
PY - 2020
Y1 - 2020
N2 - This study aims to examine the relationship between audit quality, earnings and 'equity book value relevance'. We use Big 4 and non-Big 4 public accounting firms as our proxy of audit quality. This study uses listed manufacture firms on the Indonesian Stock Exchange for the period between 2014 and 2016, and as a result, we obtain 201 firm-year observations as our final sample. We use ordinary least squares regression as our analysis technique by SPSS 21. The result shows that audit quality has a positive relationship to earnings and to equity book value relevance. This study is adding additional literature for the public accountant profession showing that the difference of value relevance from accounting information between financial report, which audited by Big 4 and non-Big 4. This study shows that audit quality determines the financial report's information relevance degree that used as input for stakeholders in making decisions.
AB - This study aims to examine the relationship between audit quality, earnings and 'equity book value relevance'. We use Big 4 and non-Big 4 public accounting firms as our proxy of audit quality. This study uses listed manufacture firms on the Indonesian Stock Exchange for the period between 2014 and 2016, and as a result, we obtain 201 firm-year observations as our final sample. We use ordinary least squares regression as our analysis technique by SPSS 21. The result shows that audit quality has a positive relationship to earnings and to equity book value relevance. This study is adding additional literature for the public accountant profession showing that the difference of value relevance from accounting information between financial report, which audited by Big 4 and non-Big 4. This study shows that audit quality determines the financial report's information relevance degree that used as input for stakeholders in making decisions.
KW - Audit quality
KW - Earnings relevance
KW - Equity book value relevance
UR - http://www.scopus.com/inward/record.url?scp=85087042530&partnerID=8YFLogxK
M3 - Article
AN - SCOPUS:85087042530
SN - 2201-1315
VL - 13
SP - 610
EP - 625
JO - International Journal of Innovation, Creativity and Change
JF - International Journal of Innovation, Creativity and Change
IS - 4
ER -