Building financial reporting quality through ethics, authenticity, and leadership: a study in Indonesia
Investors and creditors depend on high-quality financial statements to support economic decision-making. To limit the danger of misinformation in loan and investment decisions, financial reports must be relevant, transparent, and dependable. Thus, understanding the aspects that improve the quality o...
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| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2025-12-01
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| Series: | Cogent Business & Management |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2025.2523414 |
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| Summary: | Investors and creditors depend on high-quality financial statements to support economic decision-making. To limit the danger of misinformation in loan and investment decisions, financial reports must be relevant, transparent, and dependable. Thus, understanding the aspects that improve the quality of financial reports is critical. This study investigates the effects of ethical leadership, authentic leadership, and an ethical climate on financial reporting quality. Using a quantitative approach, primary data were collected through an electronic survey. A total of 122 accounting professionals participated, and the data were analyzed using PLS-SEM. The findings indicate that ethical leadership and ethical climate significantly improve financial reporting quality. Furthermore, ethical climate helps to mediate the relationship between ethical leadership and financial reporting quality. The ethical climate does not mediate this link, and authentic leadership has no discernible effect on the quality of financial reports. Overall, the suggested model accounts for 58% of the variation in financial reporting quality. |
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| ISSN: | 2331-1975 |