DO INSTITUTIONAL OWNERSHIP AND COMPANY VALUE PREDICT FINANCIAL STATEMENT INTEGRITY?

Abstract

This study seeks to produce empirical evidence by investigating the impact of institutional ownership (IO) and company value (CV) on financial statement integrity and the moderating effect of profitability on the relationship between IO and CV and financial statement integrity. To accomplish the purpose of the study, information was gathered from the fifteen companies with the highest market capitalization on the Indonesian Stock Exchange (IDX) from 2008 to 2021. Using the ARDL model, this investigation employed multiple regression analysis techniques. The study's findings indicate that company value significantly impacts financial statement integrity, and profitability's mediating effect on the association between IO and CV and financial statement integrity was also found to be significant. However, no significant effect of institutional ownership on financial statement integrity has been identified. The significant contribution of the current study's findings to academics, practitioners, and investors in the context of Indonesia has numerous implications. In addition, the findings of this study provide policymakers and other interested parties with empirical evidence