Main Article Content
Abstract
This study investigates the impact of audit committees with political connections on environmental, social, and governance (ESG) reporting. Drawing from reputational cost theory, it hypothesizes that personal political affiliations of audit committee members positively influence ESG reporting quality. Analyzing data from companies listed on the Indonesia Stock Exchange between 2018 and 2022, the findings reveal that companies with politically connected audit committees exhibit higher levels of ESG reporting compared to their counterparts without such connections. The study highlights that audit committees with political ties are subject to increased litigation risks and reputational costs.
Keywords
Article Details
Copyright (c) 2024 Jurnal Akuntansi dan Auditing Indonesia
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
References
- Ahmed Haji, A. (2015). The role of audit committee attributes in intellectual capital disclosures: evidence from Malaysia. Managerial Auditing Journal, 30(8/9), 756–784. https://doi.org/10.1108/MAJ-07-2015-1221
- Almaqoushi, W., & Powell, R. (2021). Audit committee quality indices, reporting quality and firm value. Journal of Business Finance & Accounting, 48(1–2), 185–229. https://doi.org/10.1111/jbfa.12478
- Appuhami, R., & Tashakor, S. (2017). The impact of audit committee characteristics on csr disclosure: an analysis of Australian firms. Australian Accounting Review, 27(4), 400–420. https://doi.org/10.1111/auar.12170
- Arif, M., Sajjad, A., Farooq, S., Abrar, M., & Joyo, A. S. (2021). The impact of audit committee attributes on the quality and quantity of environmental, social and governance (ESG) disclosures. Corporate Governance (Bradford), 21(3), 497–514. https://doi.org/10.1108/CG-06-2020-0243
- Badolato, P. G., Donelson, D. C., & Ege, M. (2014). Audit committee financial expertise and earnings management: The role of status. Journal of Accounting & Economics, 58(2–3), 208–230. https://doi.org/10.1016/j.jacceco.2014.08.006
- Beasley, M. S., Carcello, J. V, Hermanson, D. R., & Neal, T. L. (2009). The audit committee oversight process. Contemporary Accounting Research, 26(1), 65–122. https://doi.org/10.1506/car.26.1.3
- Becker, C. L., DeFond, M. L., Jiambalvo, J., & Subramanyam, K. R. (1998). The effect of audit quality on earnings management. Contemporary Accounting Research, 15(1), 1–24. https://doi.org/10.1111/j.1911-3846.1998.tb00547.x
- BRIN. (2023, April 29). Dukung komponen pelaporan ESG BRIN buka peluang penelitian ESG di Indonesia. Retrived from https://ppid.brin.go.id/posts/dukung-komponen-pelaporan-esg-brin-buka-peluang-penelitian-esg-di-indonesia
- Bruynseels, L., & Cardinaels, E. (2014). The audit committee: management watchdog or personal friend of the CEO? The Accounting Review, 89(1), 113–145. https://doi.org/10.2308/accr-50601
- Budiharta, P., & Kacaribu, H. E. P. B. (2020). The influence of board of directors, managerial ownership, and audit committee on carbon emission disclosure: a study of non-financial companies listed on BEI. Review of Integrative Business and Economics Research, 9, 75–87. Retrieved from https://buscompress.com/uploads/3/4/9/8/34980536/riber_9-s3_06_h19-121_75-87.pdf
- Cho, H., & Song, B. (2017). Politically connected audit committees, earnings quality and external financing: evidence from Korea. Asia‐Pacific Journal of Financial Studies, 46(4), 609–634. https://doi.org/10.1111/ajfs.12182
- De Almeida, M. G., & De Sousa Paiva, I. C. (2022). Audit committees and its effect on environmental, social, and governance disclosure. 2022 17th Iberian Conference on Information Systems and Technologies (CISTI), 1–6. https://doi.org/10.23919/CISTI54924.2022.9820167
- Edirisinghe, I. C. J., & Abeygunasekera, A. (2022). Impact of audit committee attributes on esg disclosures: evidence from firms listed in the colombo stock exchange. University of Jaffna. Retrieved from http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/5758
- Erol, D., & Çankaya, S. (2023). The impacts of firm-level and country-level variables on environmental, social, and corporate governance greenwashing. Istanbul Ticaret Üniversitesi Sosyal Bilimler Dergisi, 22(46), 683–704. https://doi.org/10.46928/iticusbe.1200111
- Faisal, F., Ridhasyah, R., & Haryanto, H. (2021). Political connections and firm performance in an emerging market context: the mediating effect of sustainability disclosure. International Journal of Emerging Markets. doi.10.1108/IJOEM-07-2020-0753
- Freeman, R. E., Harrison, J. S., Wicks, A. C., Parmar, B. L., & De Colle, S. (2010). Stakeholder theory: the state of the art. Cambridge university press. Retrieved from https://core.ac.uk/download/pdf/346447581.pdf
- Fuadah, L. L., Mukhtaruddin, M., Andriana, I., & Arisman, A. (2022). The ownership structure, and the environmental, social, and governance (esg) disclosure, firm value and firm performance: The audit committee as moderating variable. Economies, 10(12), 314. https://doi.org/https://doi.org/10.3390/economies10120314
- Global Reporting Initiative. (2016). The global standards for sustainability reporting. global reporting initiative. Retrieved from https://www.globalreporting.org/standards/
- Goss, A., & Roberts, G. S. (2011). The impact of corporate social responsibility on the cost of bank loans. Journal of Banking & Finance, 35(7), 1794–1810. https://doi.org/10.1016/j.jbankfin.2010.12.002
- Harjan, S. A., Teng, M., Shah, S. S. H., & Mohammed, J. H. (2019). Political connections and cost of debt financing: empirical evidence from China. International Journal of Economics and Financial Issues, 9(1), 212–216. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/7561
- Harymawan, I., Agustia, D., & Prasetyo, K. (2017). The quality of accounting earnings and change in political power map: evidence from Indonesia. SHS Web of Conferences, 34, 04001. https://doi.org/10.1051/shsconf/20173404001
- Harymawan, I., Nasih, M., Salsabilla, A., & Putra, F. K. G. (2020). External assurance on sustainability report disclosure and firm value: evidence from Indonesia and Malaysia. Entrepreneurship and Sustainability Issues, 7(3), 1500–1512. https://doi.org/10.9770/jesi.2020.7.3(5)
- Harymawan, I., & Nowland, J. (2016). Political connections and earnings quality: how do connected firms respond to changes in political stability and government effectiveness?. International Journal of Accounting and Information Management, 24(4), 339–356. https://doi.org/10.1108/IJAIM-05-2016-0056
- Harymawan, I., Putra, F. K. G., Agni, T. D. K., & Kamarudin, K. A. (2020). Sustainability report practices in Indonesia: context, policy, and readability. International Journal of Energy Economics and Policy, 10(3), 438–443. Retrieved from https://www.econjournals.com/index.php/ijeep/article/view/8979
- Hayat, U. (2021, December 8). ESG disclosure: how external assurance can help build trust. The Business Times. https://www.proquest.com/newspapers/esg-disclosure-how-external-assurance-can-help/docview/2607559861/se-2?accountid=13771
- Hazaea, S. A., Zhu, J., Khatib, S. F. A., Bazhair, A. H., & Elamer, A. A. (2022). Sustainability assurance practices: a systematic review and future research agenda. Environmental Science and Pollution Research International, 29(4), 4843–4864. https://doi.org/10.1007/s11356-021-17359-9
- Jamil, N. N. (2018). The effects of politically connected audit committees on audit fees: evidence in Malaysia. International Finance and Banking. doi: 10.5296/ifb.v5i1.12815
- Joni, J., Natalia, M., & Leliana, L. (2023). The investment behavior of politically connected firms in Indonesia. Asian Journal of Accounting Research, 8(4), 348–355. https://doi.org/10.1108/AJAR-12-2022-0416
- Khoo, E. S., Lim, Y., & Monroe, G. S. (2020). Audit committee members’ reputation incentives and their effectiveness in monitoring the financial reporting process. Abacus, 56(3), 348–406. https://doi.org/https://doi.org/10.1111/abac.12201
- Liu, Y., Li, X., Zeng, H., & An, Y. (2017). Political connections, auditor choice and corporate accounting transparency: evidence from private sector firms in China. Accounting & Finance, 57(4), 1071–1099. https://doi.org/10.1111/acfi.12207
- Lokuwaduge, C. S. D. S., & Heenetigala, K. (2017). Integrating environmental, social and governance (ESG) disclosure for a sustainable development: an Australian study. Business Strategy and the Environment, 26(4), 438–450. https://doi.org/10.1002/bse.1927
- Maroun, W., & Atkins, J. (2018). The emancipatory potential of extinction accounting: exploring current practice in integrated reports. Accounting Forum, 42(1), 102–118. https://doi.org/10.1016/j.accfor.2017.12.001
- Nassani, A. A., Javed, A., Radulescu, M., Yousaf, Z., Secara, C. G., & Tolea, C. (2022). Achieving green innovation in energy industry through social networks, green dynamic capabilities, and green organizational culture. Energies, 15(16), 5925. https://doi.org/10.3390/en15165925
- Oshika, T., & Koike, M. (2023). Environmental greenwashing: The role of corporate governance and assurance. Retrived from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4443828
- Pozzoli, M., Pagani, A., & Paolone, F. (2022). The impact of audit committee characteristics on esg performance in the European union member states: empirical evidence before and during the covid-19 pandemic. Journal of Cleaner Production, 371, 133411.
- Pratama, K., Lubis, H., Pratama, I., Samsuddin, S. F., & Pratami, A. (2019). Literature review of corporate social responsibility disclosure. Journal of Advanced Research in Dynamical and Control Systems, 11(5), 1397–1403. doi: 10.1016/j.jclepro.2022.133411
- Pratiwi, I. S., & Djakman, C. D. (2017). The role of corporate political connections in the relation of csr and tax avoidance: evidence from Indonesia. Review of Integrative Business and Economics Research, 6, 345. Retrieved from https://sibresearch.org/uploads/3/4/0/9/34097180/riber_6-s1_sp_s17-120_345-358.pdf
- Qian, W., & Chen, X. (2021). Corporate environmental disclosure and political connection in regulatory and leadership changes: the case of China. The British Accounting Review, 53(1), 100935. https://doi.org/10.1016/j.bar.2020.100935
- Raimo, N., Vitolla, F., Marrone, A., & Rubino, M. (2021). Do audit committee attributes influence integrated reporting quality? an agency theory viewpoint. Business Strategy and the Environment, 30(1), 522–534. https://doi.org/10.1002/bse.2635
- Rauf, F., Voinea, C. L., Naveed, K., & Fratostiteanu, C. (2021). CSR disclosure: effects of political ties, executive turnover and shareholder equity evidence from China. Sustainability, 13(7), 3623. https://doi.org/10.3390/su13073623
- Rifai, M., & Siregar, S. V. (2021). The effect of audit committee characteristics on forward-looking disclosure. Journal of Financial Reporting & Accounting, 19(5), 689–706. https://doi.org/10.1108/JFRA-05-2019-0063
- Schöndube-Pirchegger, B., & Schöndube, J. R. (2011). Reputation concerns and herd behavior of audit committees–a corporate governance problem. Journal of Accounting and Public Policy, 30(4), 327–347. https://doi.org/10.1016/j.jaccpubpol.2011.02.003
- Selin, M., Joni, J., & Ahmed, K. (2023). Political affiliation types and corporate social responsibility (CSR) commitment: evidence from Indonesia. Journal of Accounting & Organizational Change, 19(1), 24–39. doi: 10.1108/JAOC-08-2021-0109
- Simpson, S. N. Y., Aboagye-Otchere, F., & Ahadzie, R. (2022). Assurance of environmental, social and governance disclosures in a developing country: perspectives of regulators and quasi-regulators. Accounting Forum, 46(2), 109–133. https://doi.org/10.1080/01559982.2021.1927481
- Song, B. (2021). The joint effects of audit committee financial expertise and auditor industrial expertise on the quality of earnings. Global Business and Finance Review, 26(3), 68–87. https://doi.org/10.17549/gbfr.2021.26.3.68
- Srinivasan, S. (2005). Consequences of Financial Reporting Failure for outside Directors: Evidence from Accounting Restatements and Audit Committee Members. Journal of Accounting Research, 43(2), 291–334. Retrived from http://www-jstor-org.ezproxy.ugm.ac.id/stable/3542345
- Syaraswati, D., & Setiany, E. (2022). Political connection, family ownership, board commissioners and market orientation on the corporate social responsibility disclosure. Review of Integrative Business and Economics Research, 11, 135–144. Retrieved from https://sibresearch.org/uploads/3/4/0/9/34097180/riber_11-s3_04_s22-072_135-144.pdf
- Tee, C. M. (2018). Political connections and the cost of debt: Re-examining the evidence from Malaysia. Journal of Multinational Financial Management, 46, 51–62. https://doi.org/10.1016/j.mulfin.2018.05.003
- Turley, S., & Zaman, M. (2007). Audit committee effectiveness: informal processes and behavioural effects. Accounting, Auditing & Accountability Journal, 20(5), 765–788. doi: 10.1108/09513570710779036
- Victoria, B. B. U. I., & De Villiers, C. (2017). Management control systems to support sustainability and integrated reporting. Sustainability Accounting and Integrated Reporting. Retrieved from https://www.researchgate.net/publication/321303992_Bui_B_De_Villiers_C_2017_Management_Control_Systems_to_support_Sustainability_and_Integrated_Reporting_In_De_Villiers_C_Maroun_W_Eds_Sustainability_accounting_and_integrated_reporting_Routledge_Abingd#full-text
- Wahab, E. A. A., Jamaludin, M. F., Agustia, D., & Harymawan, I. (2020). Director networks, political connections, and earnings quality in Malaysia. Management and Organization Review, 16(3), 687–724. doi: 10.1017/mor.2020.26
- Young, S., & Marais, M. (2012). A multi‐level perspective of csr reporting: The implications of national institutions and industry risk characteristics. Corporate Governance: An International Review, 20(5), 432–450.
References
Ahmed Haji, A. (2015). The role of audit committee attributes in intellectual capital disclosures: evidence from Malaysia. Managerial Auditing Journal, 30(8/9), 756–784. https://doi.org/10.1108/MAJ-07-2015-1221
Almaqoushi, W., & Powell, R. (2021). Audit committee quality indices, reporting quality and firm value. Journal of Business Finance & Accounting, 48(1–2), 185–229. https://doi.org/10.1111/jbfa.12478
Appuhami, R., & Tashakor, S. (2017). The impact of audit committee characteristics on csr disclosure: an analysis of Australian firms. Australian Accounting Review, 27(4), 400–420. https://doi.org/10.1111/auar.12170
Arif, M., Sajjad, A., Farooq, S., Abrar, M., & Joyo, A. S. (2021). The impact of audit committee attributes on the quality and quantity of environmental, social and governance (ESG) disclosures. Corporate Governance (Bradford), 21(3), 497–514. https://doi.org/10.1108/CG-06-2020-0243
Badolato, P. G., Donelson, D. C., & Ege, M. (2014). Audit committee financial expertise and earnings management: The role of status. Journal of Accounting & Economics, 58(2–3), 208–230. https://doi.org/10.1016/j.jacceco.2014.08.006
Beasley, M. S., Carcello, J. V, Hermanson, D. R., & Neal, T. L. (2009). The audit committee oversight process. Contemporary Accounting Research, 26(1), 65–122. https://doi.org/10.1506/car.26.1.3
Becker, C. L., DeFond, M. L., Jiambalvo, J., & Subramanyam, K. R. (1998). The effect of audit quality on earnings management. Contemporary Accounting Research, 15(1), 1–24. https://doi.org/10.1111/j.1911-3846.1998.tb00547.x
BRIN. (2023, April 29). Dukung komponen pelaporan ESG BRIN buka peluang penelitian ESG di Indonesia. Retrived from https://ppid.brin.go.id/posts/dukung-komponen-pelaporan-esg-brin-buka-peluang-penelitian-esg-di-indonesia
Bruynseels, L., & Cardinaels, E. (2014). The audit committee: management watchdog or personal friend of the CEO? The Accounting Review, 89(1), 113–145. https://doi.org/10.2308/accr-50601
Budiharta, P., & Kacaribu, H. E. P. B. (2020). The influence of board of directors, managerial ownership, and audit committee on carbon emission disclosure: a study of non-financial companies listed on BEI. Review of Integrative Business and Economics Research, 9, 75–87. Retrieved from https://buscompress.com/uploads/3/4/9/8/34980536/riber_9-s3_06_h19-121_75-87.pdf
Cho, H., & Song, B. (2017). Politically connected audit committees, earnings quality and external financing: evidence from Korea. Asia‐Pacific Journal of Financial Studies, 46(4), 609–634. https://doi.org/10.1111/ajfs.12182
De Almeida, M. G., & De Sousa Paiva, I. C. (2022). Audit committees and its effect on environmental, social, and governance disclosure. 2022 17th Iberian Conference on Information Systems and Technologies (CISTI), 1–6. https://doi.org/10.23919/CISTI54924.2022.9820167
Edirisinghe, I. C. J., & Abeygunasekera, A. (2022). Impact of audit committee attributes on esg disclosures: evidence from firms listed in the colombo stock exchange. University of Jaffna. Retrieved from http://repo.lib.jfn.ac.lk/ujrr/handle/123456789/5758
Erol, D., & Çankaya, S. (2023). The impacts of firm-level and country-level variables on environmental, social, and corporate governance greenwashing. Istanbul Ticaret Üniversitesi Sosyal Bilimler Dergisi, 22(46), 683–704. https://doi.org/10.46928/iticusbe.1200111
Faisal, F., Ridhasyah, R., & Haryanto, H. (2021). Political connections and firm performance in an emerging market context: the mediating effect of sustainability disclosure. International Journal of Emerging Markets. doi.10.1108/IJOEM-07-2020-0753
Freeman, R. E., Harrison, J. S., Wicks, A. C., Parmar, B. L., & De Colle, S. (2010). Stakeholder theory: the state of the art. Cambridge university press. Retrieved from https://core.ac.uk/download/pdf/346447581.pdf
Fuadah, L. L., Mukhtaruddin, M., Andriana, I., & Arisman, A. (2022). The ownership structure, and the environmental, social, and governance (esg) disclosure, firm value and firm performance: The audit committee as moderating variable. Economies, 10(12), 314. https://doi.org/https://doi.org/10.3390/economies10120314
Global Reporting Initiative. (2016). The global standards for sustainability reporting. global reporting initiative. Retrieved from https://www.globalreporting.org/standards/
Goss, A., & Roberts, G. S. (2011). The impact of corporate social responsibility on the cost of bank loans. Journal of Banking & Finance, 35(7), 1794–1810. https://doi.org/10.1016/j.jbankfin.2010.12.002
Harjan, S. A., Teng, M., Shah, S. S. H., & Mohammed, J. H. (2019). Political connections and cost of debt financing: empirical evidence from China. International Journal of Economics and Financial Issues, 9(1), 212–216. Retrieved from https://www.econjournals.com/index.php/ijefi/article/view/7561
Harymawan, I., Agustia, D., & Prasetyo, K. (2017). The quality of accounting earnings and change in political power map: evidence from Indonesia. SHS Web of Conferences, 34, 04001. https://doi.org/10.1051/shsconf/20173404001
Harymawan, I., Nasih, M., Salsabilla, A., & Putra, F. K. G. (2020). External assurance on sustainability report disclosure and firm value: evidence from Indonesia and Malaysia. Entrepreneurship and Sustainability Issues, 7(3), 1500–1512. https://doi.org/10.9770/jesi.2020.7.3(5)
Harymawan, I., & Nowland, J. (2016). Political connections and earnings quality: how do connected firms respond to changes in political stability and government effectiveness?. International Journal of Accounting and Information Management, 24(4), 339–356. https://doi.org/10.1108/IJAIM-05-2016-0056
Harymawan, I., Putra, F. K. G., Agni, T. D. K., & Kamarudin, K. A. (2020). Sustainability report practices in Indonesia: context, policy, and readability. International Journal of Energy Economics and Policy, 10(3), 438–443. Retrieved from https://www.econjournals.com/index.php/ijeep/article/view/8979
Hayat, U. (2021, December 8). ESG disclosure: how external assurance can help build trust. The Business Times. https://www.proquest.com/newspapers/esg-disclosure-how-external-assurance-can-help/docview/2607559861/se-2?accountid=13771
Hazaea, S. A., Zhu, J., Khatib, S. F. A., Bazhair, A. H., & Elamer, A. A. (2022). Sustainability assurance practices: a systematic review and future research agenda. Environmental Science and Pollution Research International, 29(4), 4843–4864. https://doi.org/10.1007/s11356-021-17359-9
Jamil, N. N. (2018). The effects of politically connected audit committees on audit fees: evidence in Malaysia. International Finance and Banking. doi: 10.5296/ifb.v5i1.12815
Joni, J., Natalia, M., & Leliana, L. (2023). The investment behavior of politically connected firms in Indonesia. Asian Journal of Accounting Research, 8(4), 348–355. https://doi.org/10.1108/AJAR-12-2022-0416
Khoo, E. S., Lim, Y., & Monroe, G. S. (2020). Audit committee members’ reputation incentives and their effectiveness in monitoring the financial reporting process. Abacus, 56(3), 348–406. https://doi.org/https://doi.org/10.1111/abac.12201
Liu, Y., Li, X., Zeng, H., & An, Y. (2017). Political connections, auditor choice and corporate accounting transparency: evidence from private sector firms in China. Accounting & Finance, 57(4), 1071–1099. https://doi.org/10.1111/acfi.12207
Lokuwaduge, C. S. D. S., & Heenetigala, K. (2017). Integrating environmental, social and governance (ESG) disclosure for a sustainable development: an Australian study. Business Strategy and the Environment, 26(4), 438–450. https://doi.org/10.1002/bse.1927
Maroun, W., & Atkins, J. (2018). The emancipatory potential of extinction accounting: exploring current practice in integrated reports. Accounting Forum, 42(1), 102–118. https://doi.org/10.1016/j.accfor.2017.12.001
Nassani, A. A., Javed, A., Radulescu, M., Yousaf, Z., Secara, C. G., & Tolea, C. (2022). Achieving green innovation in energy industry through social networks, green dynamic capabilities, and green organizational culture. Energies, 15(16), 5925. https://doi.org/10.3390/en15165925
Oshika, T., & Koike, M. (2023). Environmental greenwashing: The role of corporate governance and assurance. Retrived from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4443828
Pozzoli, M., Pagani, A., & Paolone, F. (2022). The impact of audit committee characteristics on esg performance in the European union member states: empirical evidence before and during the covid-19 pandemic. Journal of Cleaner Production, 371, 133411.
Pratama, K., Lubis, H., Pratama, I., Samsuddin, S. F., & Pratami, A. (2019). Literature review of corporate social responsibility disclosure. Journal of Advanced Research in Dynamical and Control Systems, 11(5), 1397–1403. doi: 10.1016/j.jclepro.2022.133411
Pratiwi, I. S., & Djakman, C. D. (2017). The role of corporate political connections in the relation of csr and tax avoidance: evidence from Indonesia. Review of Integrative Business and Economics Research, 6, 345. Retrieved from https://sibresearch.org/uploads/3/4/0/9/34097180/riber_6-s1_sp_s17-120_345-358.pdf
Qian, W., & Chen, X. (2021). Corporate environmental disclosure and political connection in regulatory and leadership changes: the case of China. The British Accounting Review, 53(1), 100935. https://doi.org/10.1016/j.bar.2020.100935
Raimo, N., Vitolla, F., Marrone, A., & Rubino, M. (2021). Do audit committee attributes influence integrated reporting quality? an agency theory viewpoint. Business Strategy and the Environment, 30(1), 522–534. https://doi.org/10.1002/bse.2635
Rauf, F., Voinea, C. L., Naveed, K., & Fratostiteanu, C. (2021). CSR disclosure: effects of political ties, executive turnover and shareholder equity evidence from China. Sustainability, 13(7), 3623. https://doi.org/10.3390/su13073623
Rifai, M., & Siregar, S. V. (2021). The effect of audit committee characteristics on forward-looking disclosure. Journal of Financial Reporting & Accounting, 19(5), 689–706. https://doi.org/10.1108/JFRA-05-2019-0063
Schöndube-Pirchegger, B., & Schöndube, J. R. (2011). Reputation concerns and herd behavior of audit committees–a corporate governance problem. Journal of Accounting and Public Policy, 30(4), 327–347. https://doi.org/10.1016/j.jaccpubpol.2011.02.003
Selin, M., Joni, J., & Ahmed, K. (2023). Political affiliation types and corporate social responsibility (CSR) commitment: evidence from Indonesia. Journal of Accounting & Organizational Change, 19(1), 24–39. doi: 10.1108/JAOC-08-2021-0109
Simpson, S. N. Y., Aboagye-Otchere, F., & Ahadzie, R. (2022). Assurance of environmental, social and governance disclosures in a developing country: perspectives of regulators and quasi-regulators. Accounting Forum, 46(2), 109–133. https://doi.org/10.1080/01559982.2021.1927481
Song, B. (2021). The joint effects of audit committee financial expertise and auditor industrial expertise on the quality of earnings. Global Business and Finance Review, 26(3), 68–87. https://doi.org/10.17549/gbfr.2021.26.3.68
Srinivasan, S. (2005). Consequences of Financial Reporting Failure for outside Directors: Evidence from Accounting Restatements and Audit Committee Members. Journal of Accounting Research, 43(2), 291–334. Retrived from http://www-jstor-org.ezproxy.ugm.ac.id/stable/3542345
Syaraswati, D., & Setiany, E. (2022). Political connection, family ownership, board commissioners and market orientation on the corporate social responsibility disclosure. Review of Integrative Business and Economics Research, 11, 135–144. Retrieved from https://sibresearch.org/uploads/3/4/0/9/34097180/riber_11-s3_04_s22-072_135-144.pdf
Tee, C. M. (2018). Political connections and the cost of debt: Re-examining the evidence from Malaysia. Journal of Multinational Financial Management, 46, 51–62. https://doi.org/10.1016/j.mulfin.2018.05.003
Turley, S., & Zaman, M. (2007). Audit committee effectiveness: informal processes and behavioural effects. Accounting, Auditing & Accountability Journal, 20(5), 765–788. doi: 10.1108/09513570710779036
Victoria, B. B. U. I., & De Villiers, C. (2017). Management control systems to support sustainability and integrated reporting. Sustainability Accounting and Integrated Reporting. Retrieved from https://www.researchgate.net/publication/321303992_Bui_B_De_Villiers_C_2017_Management_Control_Systems_to_support_Sustainability_and_Integrated_Reporting_In_De_Villiers_C_Maroun_W_Eds_Sustainability_accounting_and_integrated_reporting_Routledge_Abingd#full-text
Wahab, E. A. A., Jamaludin, M. F., Agustia, D., & Harymawan, I. (2020). Director networks, political connections, and earnings quality in Malaysia. Management and Organization Review, 16(3), 687–724. doi: 10.1017/mor.2020.26
Young, S., & Marais, M. (2012). A multi‐level perspective of csr reporting: The implications of national institutions and industry risk characteristics. Corporate Governance: An International Review, 20(5), 432–450.