Firm size as an intervening variable within determinants of financial report integrity.
Keywords:Leverage, Good Corporate Governance, Firm Size, Integrity of Financial Reports.
This research aims to test the influence directly between the leverage variable and the Good Corporate Governance (GCG) variable on the Integrity of Financial Reports (IFR) and indirectly through Firm Size. This research is designed to create a formula model that can maximize the IFR determinant through Firm Size as an intervening variable. This research uses as objects companies listed on the Indonesia Stock Exchange (IDX) and which participated consistently in the assessment of the corporate governance perception index (CGPI) from 2011 to 2016. The results of the research are that leverage has a significant effect with a positive correlation with firm size and with a negative correlation to IFR. On the other hand, Good Corporate Governance (GCG) cannot explain its effect on Firm Size but can explain the IFR with a positive correlation. In testing the intervening variable Firm Size, the results did not function to mediate the IFR. These results are expected to help company management and capital market investors. Another thing is that this research resulted in the formulation of a research model that can maximize IFR.
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