Firm size moderate the effect of audit quality and managerial ownership on investment efficiency

https://doi.org/10.21744/irjmis.v10n3.2318

Authors

  • Pande Putu Biantari Darmayanti Faculty of Economics and Business Udayana University, Bali, Indonesia
  • Dewa Gede Wirama Faculty of Economics and Business Udayana University, Bali, Indonesia
  • I Putu Sudana Faculty of Economics and Business Udayana University, Bali, Indonesia
  • Maria Mediatrix Ratna Sari Faculty of Economics and Business Udayana University, Bali, Indonesia

Keywords:

audit quality, effects audit quality, firm size, investment efficiency, managerial ownership

Abstract

This study aims to examine the effect of audit quality and managerial ownership on firms' investment efficiency. In addition, this study also aims to investigate the effect of firm size in moderating the effects of audit quality and managerial ownership on investment efficiency. The population of this study is manufacturing sector companies listed on the Indonesia Stock Exchange (IDX). Using a sample of 162 companies in 2019-2021, 486 observations were obtained. This study used logistic and moderated regression analyses (MRA) with Eviews 12 software for data analysis. The results show that audit quality does not affect investment efficiency. Managerial ownership affects investment efficiency. Firm size does not moderate the effect of audit quality on investment efficiency. Firm size can strengthen the effect of managerial ownership on investment efficiency.

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Published

2023-05-16

How to Cite

Darmayanti, P. P. B., Wirama, D. G., Sudana, I. P., & Sari, M. M. R. (2023). Firm size moderate the effect of audit quality and managerial ownership on investment efficiency. International Research Journal of Management, IT and Social Sciences, 10(3), 198–207. https://doi.org/10.21744/irjmis.v10n3.2318

Issue

Vol. 10 No. 3 (2023): May

Section

Peer Review Articles
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