Moderating Earning Management: Quality of Internal Auditors, Business Strategy, and Sustainability Reporting on Economic Performance

Abstract

This research aims to determine the effect of internal auditor quality, business strategy, and sustainability reporting on economic performance with moderated by earning management partially on companies kompas100 index during the period 2013-2016.The population in this research is all companies kompas100 index listed on Indonesia Stock Exchange during the period 2013-2016. The total samples tested were 9 companies selected by purposive sampling technique. Data type in this research use secondary data obtained from Indonesia Stock Exchange and site respectively of company being sampled. Data analysis technique use panel data regression with Eviews 9.0 program. The result indicates that internal auditor quality have a positive effect on economic performance but after moderated by earning management of internal auditor quality has no effect on economic performance. Business strategy have a positive effect on economic performance but after moderated by earning management of business strategy has a negative effect on economic performance. Sustainability reporting have no effect on economic performance but after moderated by earning management of sustainability reporting has no effect on economic performance and return on assets as control variable have a positive effect on economic performance. Keywords: Economic performance, Internal Auditor Quality, Business Strategy, Sustainability Reporting. DOI: 10.7176/RJFA/11-2-09 Publication date: January 31st 202