Determinants of c-score as a measure of financial reporting integrity in SOEs
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Published:
Jun 9, 2025
Keywords:
Audit Tenure, Financial Statements Integrity, Independent Commissioners, Intellectual Capital, Profitability
Section
Articles
Statistics Article
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Abstract
Financial statements are essential decision-making tools that impact company performance and the broader economy. However, the integrity of financial statements in Indonesia particularly within State-Owned Enterprises (SOEs) continues to face challenges, as reflected in recurring cases of financial manipulation. This study examines the factors influencing the integrity of financial statements in SOEs listed on the Indonesia Stock Exchange (IDX) during the 2021–2023 period, focusing on the roles of independent commissioners, intellectual capital, profitability, and audit tenure. Using panel data regression to analyze secondary data from SOEs, the results show that intellectual capital has a significant positive effect on financial reporting integrity. In contrast, profitability has a significant negative effect. However, independent commissioners and audit tenure do not show a significant influence. These findings not only contribute to the existing literature but also offer practical recommendations for companies, regulators, auditors, and investors to strengthen the management of intellectual capital in order to enhance transparency and improve the integrity of financial statements.
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How to Cite
Zahira, R., Zakaria, A., & Nindito, M. (2025). Determinants of c-score as a measure of financial reporting integrity in SOEs. Indonesia Accounting Research Journal, 12(4), 125–134. https://doi.org/10.35335/iacrj.v12i4.456
References
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Edvinsson, L., Mas, F. D., Pablos, P. O. D., Massaro, M., & Dumay, J. (2022). From a value-based knowledge economy to a worth economy: New reflections and perspectives on intellectual capital research. International Journal of Learning and Intellectual Capital, 19(1), 83–101.
Fadillah, R. A., & Putri, R. F. (2023). Factors influencing the integrity of financial statements in consumer goods companies listed on the IDX for the 2018–2020 period. Journal of Finance and Business Digital, 2(1), 43–64.
Febrilyantri, C. (2020). Pengaruh intellectual capital, size dan leverage terhadap integritas laporan keuangan pada perusahaan manufaktur sektor food and beverage tahun 2015–2018. Owner: Riset dan Jurnal Akuntansi, 4(1), 267–275.
Jafar, R., Basuki, B., Windijarto, W., & Setiawan, R. (2024). Family control and corporate performance: The role of independent commissioners in reducing agency problems. Gestão & Produção, 31, 7923.
Johnson, V. E., Khurana, I. K., & Reynolds, J. K. (2022). Audit‐firm tenure and the quality of financial reports. Contemporary Accounting Research, 19(4), 637–660.
Kalbuana, N., Taqi, M., Uzliawati, L., & Muchlish, M. (2025). Enhancing audit quality dynamics: Unveiling the impact of profitability, audit report lag, audit tenure, and auditee company size. Faculty of Mediterranean Business Studies Tivat, Montenegro, 21(1), 67–77.
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Mashuri, A. A. S., Ermaya, H. N. L., & Fahria, R. (2023). Determinants of financial statements integrity in company index Kompas 100. Jurnal Informasi, Perpajakan, Akuntansi, Dan Keuangan Publik, 18(1), 139–156.
Mauliana, E., & Laksito, H. (2021). Pengaruh fee audit, audit tenure, rotasi audit dan reputasi auditor terhadap kualitas audit (Studi empiris pada perusahaan manufaktur yang terdaftar di BEI tahun 2017–2019. Diponegoro Journal of Accounting, 10(4).
Meckling, W. H., & Jensen, M. C. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.
Meiryani, Fahlevi, M., Robbani, A. I., Winoto, A., Salim, G., Purnomo, A., & Lusianah. (2023). FACTORS AFFECTING THE INTEGRITY OF FINANCIAL STATEMENTS. Corporate Governance and Organizational Behavior Review, 7(3), 211–227. https://doi.org/10.22495/cgobrv7i3p17
Nabila, N. H. P. (2024). BEI telisik dugaan fraud di laporan keuangan Indofarma dan Kimia Farma. Katadata. https://katadata.co.id/finansial/bursa/66615bbc20589/bei-telisik-dugaan-fraud-di-laporan-keuangan-indofarma-dan-kimia-farma
Oktaviana, H., & Paramitha, M. (2021). The effect of ownership structure, audit committee, company size, and audit quality on the integrity of financial statements on manufacturing companies listed on IDX. Journal La Bisecoman, 2(4), 15–29.
Palebangan, I. V. P., & Majidah, M. (2021). Pengaruh intellectual capital, leverage dan audit tenure terhadap integritas laporan keuangan (Studi empiris pada perusahaan subsektor properti dan real estate yang terdaftar di Bursa Efek Indonesia tahun 2015–2019. eProceedings of Management, 8(6).
Penman, S. H., & Zhang, X. (2002). Accounting conservatism, the quality of earnings, and stock returns. The Accounting Review, 77(2), 237–264.
Pitria, I., & Miftah, D. (2024). Audit committee, auditor tenure and company size: Implications for the integrity of financial reports. InJEBA: International Journal of Economics, Business and Accounting, 2(2), 202–211.
Pulić, A. (1998). Measuring the performance of intellectual potential in the knowledge economy. In The 2nd World Congress on the Management of Intellectual Capital.
Rahmadi, Z. T., Wahyudi, M. A., Nurdiana, D., & Hasibuan, A. N. (2022). The influence of independent commissioners, audit committees and profitability on the integrity of LQ-45 indexed companies’ financial report. Jurnal Ekonomi, 11(3), 612–622.
Rahmaniah, N. (2022). Analisis pengaruh corporate governance dan profitabilitas terhadap integritas laporan keuangan di bank umum syariah periode 2014–2019. In [Bachelor’s thesis, Universitas Islam Negeri Sumatera Utara].
Sormin, F. (2021). The effect of managerial ownership, profitability, company size on the integrity of financial statements at plantation companies. Saudi Journal of Economics and Finance, 5(4), 160–163.
Stewart, N. (2024). The Big 4’s revenue: Advisory is the new audit. Projectworks. https://www.projectworks.com/blog/2024-the-big-4s-revenue
Sucitra, K., Sari, R., & Widyastuti, S. (2021). Pengaruh manajemen laba, audit tenure dan komisaris independen terhadap integritas laporan keuangan. Konferensi Riset Nasional Ekonomi Manajemen dan Akuntansi, 2(1), 713–727.
Suzan, L., & Rizaldi, V. R. (2024). Factors affecting the integrity of property and real estate company financial statement. Jurnal Akuntansi, 28(1), 1–20.
Tantrianna, T. (2021). Analisis pengaruh rasio keuangan dan corporate governance terhadap integritas laporan keuangan (Studi empiris pada perusahaan sektor manufaktur yang terdaftar di Bursa Efek Indonesia periode 2015–2019. [Doctoral dissertation, Universitas Katolik Soegijapranata Semarang].
Tempo. (2023). Bahaya manipulasi laporan keuangan BUMN. Tempo.co. https://www.tempo.co/kolom/laporan-keuangan-bumn-823407
Wanderah, P. O., & Musiega, M. (2020). Influence of profitability on financial instruments disclosure quality among listed firms in Kenya. Strategic Journal of Business & Change Management.
Wulandari, S., Ermaya, H. N. L., & Mashuri, A. A. S. (2021). Pengaruh mekanisme corporate governance, financial distress, dan audit tenure terhadap integritas laporan keuangan. Jurnal Akunida, 7(1), 85–98.
Zutter, C. J., & Smart, S. B. (2022). Principles of managerial finance (16th ed.). Pearson Education Limited.
Abbas, D., Siregar, I. G., & Basuki. (2021). Integrity of financial statements and the factors. Journal of Accounting Science, 5(1), 17–27.
Azis, F., & Annisa, D. (2023). Pengaruh financial distress dan audit tenure terhadap integritas laporan keuangan dengan komite audit sebagai variabel pemoderasi: Studi empiris pada perusahaan sektor consumer non cyclicals yang terdaftar di Bursa Efek Indonesia tahun 2017–2021. Jurnal Ilmiah Akuntansi Kesatuan, 11(2), 223–232.
Basuki, A. T., & Prawoto, N. (2019). Analisis Regresi: dalam Penelitian Ekonomi dan Bisnis. Rajagrafindo Persada.
Binekasri, R. (2024). Erick Thohir: Setoran BUMN untuk negara nyaris tembus Rp2 ribu triliun. CNBC Indonesia. https://www.cnbcindonesia.com/market/20240902192828-17-568550/erick-thohir-setoran-bumn-untuk-negara-nyaris-tembus-rp2-ribu-triliun
BPS. (2024). Realisasi pendapatan negara – tabel statistik. Badan Pusat Statistik Indonesia. https://www.bps.go.id/id/statistics-table/2/MTA3MCMy/realisasi-pendapatan-negara.html
Edvinsson, L., Mas, F. D., Pablos, P. O. D., Massaro, M., & Dumay, J. (2022). From a value-based knowledge economy to a worth economy: New reflections and perspectives on intellectual capital research. International Journal of Learning and Intellectual Capital, 19(1), 83–101.
Fadillah, R. A., & Putri, R. F. (2023). Factors influencing the integrity of financial statements in consumer goods companies listed on the IDX for the 2018–2020 period. Journal of Finance and Business Digital, 2(1), 43–64.
Febrilyantri, C. (2020). Pengaruh intellectual capital, size dan leverage terhadap integritas laporan keuangan pada perusahaan manufaktur sektor food and beverage tahun 2015–2018. Owner: Riset dan Jurnal Akuntansi, 4(1), 267–275.
Jafar, R., Basuki, B., Windijarto, W., & Setiawan, R. (2024). Family control and corporate performance: The role of independent commissioners in reducing agency problems. Gestão & Produção, 31, 7923.
Johnson, V. E., Khurana, I. K., & Reynolds, J. K. (2022). Audit‐firm tenure and the quality of financial reports. Contemporary Accounting Research, 19(4), 637–660.
Kalbuana, N., Taqi, M., Uzliawati, L., & Muchlish, M. (2025). Enhancing audit quality dynamics: Unveiling the impact of profitability, audit report lag, audit tenure, and auditee company size. Faculty of Mediterranean Business Studies Tivat, Montenegro, 21(1), 67–77.
Kementerian BUMN RI. (2024). Klaster usaha. Kementerian BUMN RI. https://bumn.go.id/portofolio/klaster-usaha
KPK. (2024). Publikasi Data KPK. https://kpk.go.id/id/publikasi-data/statistik/penindakan-2
Mardjono, E. S., & Chen, Y. S. (2020). Earning management and the effect characteristics of audit committee, independent commissioners: Evidence from Indonesia. International Journal of Business and Society, 21(2), 569–587.
Mashuri, A. A. S., Ermaya, H. N. L., & Fahria, R. (2023). Determinants of financial statements integrity in company index Kompas 100. Jurnal Informasi, Perpajakan, Akuntansi, Dan Keuangan Publik, 18(1), 139–156.
Mauliana, E., & Laksito, H. (2021). Pengaruh fee audit, audit tenure, rotasi audit dan reputasi auditor terhadap kualitas audit (Studi empiris pada perusahaan manufaktur yang terdaftar di BEI tahun 2017–2019. Diponegoro Journal of Accounting, 10(4).
Meckling, W. H., & Jensen, M. C. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.
Meiryani, Fahlevi, M., Robbani, A. I., Winoto, A., Salim, G., Purnomo, A., & Lusianah. (2023). FACTORS AFFECTING THE INTEGRITY OF FINANCIAL STATEMENTS. Corporate Governance and Organizational Behavior Review, 7(3), 211–227. https://doi.org/10.22495/cgobrv7i3p17
Nabila, N. H. P. (2024). BEI telisik dugaan fraud di laporan keuangan Indofarma dan Kimia Farma. Katadata. https://katadata.co.id/finansial/bursa/66615bbc20589/bei-telisik-dugaan-fraud-di-laporan-keuangan-indofarma-dan-kimia-farma
Oktaviana, H., & Paramitha, M. (2021). The effect of ownership structure, audit committee, company size, and audit quality on the integrity of financial statements on manufacturing companies listed on IDX. Journal La Bisecoman, 2(4), 15–29.
Palebangan, I. V. P., & Majidah, M. (2021). Pengaruh intellectual capital, leverage dan audit tenure terhadap integritas laporan keuangan (Studi empiris pada perusahaan subsektor properti dan real estate yang terdaftar di Bursa Efek Indonesia tahun 2015–2019. eProceedings of Management, 8(6).
Penman, S. H., & Zhang, X. (2002). Accounting conservatism, the quality of earnings, and stock returns. The Accounting Review, 77(2), 237–264.
Pitria, I., & Miftah, D. (2024). Audit committee, auditor tenure and company size: Implications for the integrity of financial reports. InJEBA: International Journal of Economics, Business and Accounting, 2(2), 202–211.
Pulić, A. (1998). Measuring the performance of intellectual potential in the knowledge economy. In The 2nd World Congress on the Management of Intellectual Capital.
Rahmadi, Z. T., Wahyudi, M. A., Nurdiana, D., & Hasibuan, A. N. (2022). The influence of independent commissioners, audit committees and profitability on the integrity of LQ-45 indexed companies’ financial report. Jurnal Ekonomi, 11(3), 612–622.
Rahmaniah, N. (2022). Analisis pengaruh corporate governance dan profitabilitas terhadap integritas laporan keuangan di bank umum syariah periode 2014–2019. In [Bachelor’s thesis, Universitas Islam Negeri Sumatera Utara].
Sormin, F. (2021). The effect of managerial ownership, profitability, company size on the integrity of financial statements at plantation companies. Saudi Journal of Economics and Finance, 5(4), 160–163.
Stewart, N. (2024). The Big 4’s revenue: Advisory is the new audit. Projectworks. https://www.projectworks.com/blog/2024-the-big-4s-revenue
Sucitra, K., Sari, R., & Widyastuti, S. (2021). Pengaruh manajemen laba, audit tenure dan komisaris independen terhadap integritas laporan keuangan. Konferensi Riset Nasional Ekonomi Manajemen dan Akuntansi, 2(1), 713–727.
Suzan, L., & Rizaldi, V. R. (2024). Factors affecting the integrity of property and real estate company financial statement. Jurnal Akuntansi, 28(1), 1–20.
Tantrianna, T. (2021). Analisis pengaruh rasio keuangan dan corporate governance terhadap integritas laporan keuangan (Studi empiris pada perusahaan sektor manufaktur yang terdaftar di Bursa Efek Indonesia periode 2015–2019. [Doctoral dissertation, Universitas Katolik Soegijapranata Semarang].
Tempo. (2023). Bahaya manipulasi laporan keuangan BUMN. Tempo.co. https://www.tempo.co/kolom/laporan-keuangan-bumn-823407
Wanderah, P. O., & Musiega, M. (2020). Influence of profitability on financial instruments disclosure quality among listed firms in Kenya. Strategic Journal of Business & Change Management.
Wulandari, S., Ermaya, H. N. L., & Mashuri, A. A. S. (2021). Pengaruh mekanisme corporate governance, financial distress, dan audit tenure terhadap integritas laporan keuangan. Jurnal Akunida, 7(1), 85–98.
Zutter, C. J., & Smart, S. B. (2022). Principles of managerial finance (16th ed.). Pearson Education Limited.
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