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Articles
Articles
The Effect of Financial Report Readability, Accounting Policy Consistency, Performance Reporting Pressure, And Information Asymmetry on the Earnings Quality of Public Companies
Mohammad Rizky Yahya, Putri, Muhammad Rispan Affandi, Ngurah Pandji Mertua Agung Durya, Merissa Fermica Iskandar Iskandar
View Author Affiliations
- Mohammad Rizky Yahya: Sekolah Tinggi Ilmu Ekonomi Sulawesi Utara., Indonesia
- Putri: Sekolah Tinggi Ilmu Ekonomi Sultan Agung., Indonesia
- Muhammad Rispan Affandi: Akademi Informatika dan Komputer Medicom., Indonesia
- Ngurah Pandji Mertua Agung Durya: Universitas Dian Nuswantoro., Indonesia
- Merissa Fermica Iskandar Iskandar: Universitas Tangerang Raya., Indonesia
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Abstract
This study examines the effect of financial report readability, accounting policy consistency, performance reporting pressure, and information asymmetry on the earnings quality of public companies. Earnings quality is a crucial indicator for investors and stakeholders because it reflects the extent to which reported earnings represent a firm’s true economic performance. Readable financial reports enhance transparency and reduce misunderstanding among users of financial statements. Accounting policy consistency ensures comparability and reliability of financial information across periods. Performance reporting pressure may encourage managerial opportunistic behavior, potentially reducing earnings quality. Meanwhile, information asymmetry arises when managers possess superior information compared to external stakeholders, which may increase earnings management practices. This study employs a quantitative research approach using secondary data obtained from publicly listed companies. The sample consists of 100 firm-year observations selected through purposive sampling. Data analysis was conducted using the Statistical Package for the Social Sciences (SPSS). The analytical techniques include descriptive statistics, classical assumption tests, multiple linear regression analysis, t-tests, F-tests, and hypothesis testing. The results indicate that financial report readability and accounting policy consistency have a positive and significant effect on earnings quality. Conversely, performance reporting pressure and information asymmetry have a negative and significant effect on earnings quality. Simultaneously, all independent variables significantly influence earnings quality. These findings suggest that improving transparency and consistency in financial reporting while reducing excessive performance pressure and information asymmetry can enhance the quality of corporate earnings. This study contributes to financial accounting literature and provides practical implications for regulators, managers, and investors.
Keywords
Author Biographies
Mohammad Rizky Yahya
Sekolah Tinggi Ilmu Ekonomi Sulawesi Utara.
Accounting Study Program, Sekolah Tinggi Ilmu Ekonomi Sulawesi Utara, Manado City, North Sulawesi Province, Indonesia.
Putri
Sekolah Tinggi Ilmu Ekonomi Sultan Agung.
Accounting Study Program, Sekolah Tinggi Ilmu Ekonomi Sultan Agung, Pematang Siantar City, North Sumatra Province, Indonesia.
Muhammad Rispan Affandi
Akademi Informatika dan Komputer Medicom.
Computerized Accounting Study Program, Akademi Informatika dan Komputer Medicom, Medan City, North Sumatra Province, Indonesia.
Ngurah Pandji Mertua Agung Durya
Universitas Dian Nuswantoro.
Universitas Dian Nuswantoro, Semarang City, Central Java Province, Indonesia.
Merissa Fermica Iskandar Iskandar
Universitas Tangerang Raya.
Management Study Program, Universitas Tangerang Raya, Tangerang Regency, Banten Province, Indonesia.
Article Identifiers
- Article Title: The Effect of Financial Report Readability, Accounting Policy Consistency, Performance Reporting Pressure, And Information Asymmetry on the Earnings Quality of Public Companies
- DOI: 10.59431/ijer.v6i2.768
- Publication Date: 2026-06-28
- Journal: Indonesian Journal Economic Review (IJER)
- Volume: 6
- Issue: 2
- Pages: 372–379
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Issue Information
Article Details
| Volume: | 6 |
| Issue: | 2 |
| Year: | 2026 |
| Published: | 2026-06-28 |
| Pages: | 372–379 |
| Section: | Articles |
Additional Information
How to Cite
Yahya, M. R., Juan Anastasia, Affandi, M. R., Durya, N. P. M. A., & Iskandar, M. F. I. (2026). The Effect of Financial Report Readability, Accounting Policy Consistency, Performance Reporting Pressure, And Information Asymmetry on the Earnings Quality of Public Companies. Indonesian Journal Economic Review (IJER), 6(2), 372–379. https://doi.org/10.59431/ijer.v6i2.768
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This work is licensed under a Creative Commons License.
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