Journal of Contemporary Accounting

The influence of free cash flow, capital structure, investment opportunities, and company growth on dividend policy

Nuning Safitri M. Sawal, Rizki Wahyu Utami Ohorella; Meliana Meliana — Wed, 10 Dec 2025 00:00:00 +0000

This study aims to analyze the effect of free cash flow, capital structure, investment opportunities, and firm growth on dividend policy in mining companies listed on the Indonesia Stock Exchange (IDX) during the period 2019–2023. The research employed multiple regression analysis using secondary data obtained from companies’ financial statements and annual reports. The results indicate that free cash flow, capital structure, and firm growth have no significant effect on dividend policy, while investment opportunities have a significant positive effect. Simultaneously, the four variables significantly influence dividend policy with an F-statistic probability value of 0.002 (<0.05) and are able to explain 15.88% of the variation in dividend policy, while the remaining 84.12% is explained by other factors outside the research model. These findings imply that investment opportunities are an important consideration for management in determining dividend policy, whereas free cash flow, capital structure, and firm growth are not the main determinants.

The influence of auditor independence, competence and integrity on audit quality moderated by the auditor's code of professional ethics

Rudi Hartono; Tri Widyastuty; Sumarno Minrejo, David Pangaribuan — Wed, 10 Dec 2025 00:00:00 +0000

This study aims to analyze the influence of auditor independence, competence, and integrity on audit quality, as well as the role of a professional code of ethics as a moderating variable in this relationship. This study uses a quantitative method with a PLS-SEM approach. The sample consisted of 184 auditors at South Jakarta Public Accounting Firms (KAPs), selected through purposive sampling. Data were collected through questionnaires that had been tested for validity and reliability, as well as interviews with senior auditors to understand the challenges in implementing a professional code of ethics. The analysis results show that auditor independence, competence, and integrity have a positive and significant effect on audit quality, with integrity being the most dominant factor. Furthermore, a professional code of ethics has been shown to strengthen the relationship between independence, competence, and integrity with audit quality, meaning that strict implementation of a code of ethics increases effectiveness and ensures transparent and high-quality audits. However, interviews revealed challenges in implementing a code of ethics, including pressure from clients, long-term relationships that threaten independence, and a lack of training related to the code of ethics in some KAPs.

Beyond stability: Mapping financial performance volatility and audit quality

Arika Artiningsih, Firdaus Kurniawan, Albertus Henri Listyanto Nugroho — Wed, 10 Dec 2025 00:00:00 +0000

This study examines the relationship between financial performance volatility and audit quality among non-financial firms listed on the Indonesia Stock Exchange from 2010 to 2024. Using 4,533 firm-year observations, the study examines how fluctuations in profitability, liquidity, and solvency impact the effectiveness of external audits, as measured by the absolute value of discretionary accruals. The empirical results show that volatility in all three financial dimensions is negatively associated with audit quality, indicating that firms with more unstable financial performance tend to experience lower-quality audits. Furthermore, cluster analysis reveals distinct volatility patterns that correspond to varying audit quality levels, confirming that financial stability is a significant determinant of audit risk. These findings extend Agency Theory and the Risk-Based Auditing Framework by introducing financial volatility as a key indicator of audit risk. The study provides implications for auditors, regulators, and policymakers to enhance audit planning and oversight in emerging market contexts.

Corporate governance mechanisms and environmental management system on environmental disclosure

Tihana Tyan Zahrotuddinia Tauhida, Indah Fajarini Sri Wahyuningrum — Wed, 10 Dec 2025 00:00:00 +0000

This research aims to examine the influence of corporate governance and EMS on environmental disclosure. The corporate governance variable is proxied by managerial ownership, foreign ownership, frequency of board of commissioner meetings, proportion of independent board of directors, and gender diversity. The data in this research is secondary data originating from the annual reports and sustainability reports of property & real estate companies listed on the Indonesia Stock Exchange in 2021-2023. This research uses quantitative research methods with data collection techniques by means of literature research and documentation research, and the results are analyzed by panel data regression analysis techniques. Test result using panel data regression show that the managerial ownership, foreign ownership, and gender diversity does not affect environmental disclosure while frequency of board of commissioner meetings, proportion of independent board of directors, and EMS variable have a significant positive effect on environmental disclosure. test result also show that the control variable profitability proxied by ROA does not influence environmental disclosure. This research contributes by highlighting insight into specific impact of corporate governance components and EMS on environmental disclosure within property & real estate sector. The findings provide a more nuanced understanding of how these components interact to influence corporate transparency regarding environmental issues.