THE EFFECT OF LITIGATION RISK AND GOOD CORPORATE ON QUALITY OF FINANCIAL STATEMENTS IN BANKING COMPANIES IN INDONESIA STOCK EXCHANGE YEAR 2012-2016

Abstract

The purpose of this study is to examine and analyze the effect of litigation risk,
institutional ownership, managerial ownership, board of directors, independent
commissioners, and audit committee partially and simultaneously to the quality of
financial statements. The population of this study are all companies engaged in
banking that go public in Indonesia Stock Exchange in 2012 until the year 2016 as
many as 36 companies. Sampling using purposive sampling method. Samples that
meet the criteria there are 31 companies, the method of data analysis using multiple
linear regression. Test results show that litigation risks, institutional ownership,
independent commissioners, and audit committees have a significant influence on
the quality of financial statements. While managerial ownership and board of
directors have no significant effect to the quality of financial statements.
Simultaneously the risk of litigation, institutional ownership, managerial ownership,
board of directors, independent commissioner and audit committee affect the quality
of financial statements can be seen from F count (5.883)> F table (3.172).