Muhammad Khafid, Sandy Arief
The purposes of this study are first, to analyse the influence of corporate governance structure and ownership structure on earnings quality and second, to examine the role of institutional ownership on the causal relationship between managerial ownership and market outcomes. The sample of the study was 242 companies from 430 companies listed on the Indonesia Stock Exchange (IDX) using purposive sampling technique. Data analysis technique used moderating variables regression with institutional ownership. The results showed board composition of directors and managerial ownership significantly affected market outcomes. The number of audit committees did not affect significantly market outcomes while institutional ownership did not affect significantly the profit but as a moderating variable, institutional ownership significantly improved the effects of managerial ownership on earnings quality. Accounting-based profit quality is reflected by the solid profit persistence and predictability. © Universiti Putra Malaysia Press.
Department of Accounting, Faculty of Economics, Universitas Negeri Semarang (UNNES), L2 Building, Kampus Sekaran Gunungpati Semarang, Central Java, 50229, Indonesia; Department of Economics Education, Faculty of Economics, Universitas Negeri Semarang (UNNES), L2 Building, Kampus Sekaran Gunungpati Semarang, Central Java, 50229, Indonesia
