Indonesian Financial Review

The Effect of Capital Structure and Audit Committee on Earnings Quality

2026-08-06T09:50:12+00:00

This study examines the effects of capital structure and audit committee on earnings quality in industrial companies listed on the Indonesia Stock Exchange during 2020–2024. Using a quantitative approach and panel data regression with the Random Effects Model, the study analyzes 14 companies with 70 firm-year observations. Earnings quality is measured using a logarithmic transformation, while capital structure is measured by the debt-to-equity ratio and audit committee by the number of members. The results show that capital structure has a positive but insignificant effect on earnings quality (p = 0.0602), while the audit committee has a negative but insignificant effect (p = 0.1812). The simultaneous effect is also insignificant (p = 0.0586). These findings indicate that capital structure and audit committee size alone are insufficient to explain earnings quality.

Determinants of MSME Taxpayer Compliance: Evidence from KPP Pratama Pondok Aren, Indonesia

2026-08-25T01:03:50+00:00

This study examines the effects of taxation system modernization, tax calculation methods, tax justice, and tax rate changes on MSME taxpayer compliance at KPP Pratama Pondok Aren, South Tangerang. Questionnaire data from 100 MSME taxpayers were collected through purposive sampling, with Slovin’s formula determining sample size. Data were analyzed using validity, reliability, classical assumption, multiple linear regression, t-, and F-tests. The results show that taxation system modernization positively and significantly affects compliance (? = 0.172; p = 0.038), as do tax rate changes (? = 0.477; p < 0.001). Tax calculation methods (? = 0.088; p = 0.378) and tax justice (? = 0.165; p = 0.090) have positive but insignificant effects. Model is significant (F = 28.017; p < 0.001) and explains 54.1% of compliance variation (R² = 0.541).