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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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-12-01
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| Series: | Cogent Business & Management |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2025.2523414 |
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| author | Aldystira Rachmawati Tan Ming Kuang Tan Kwang En Meythi Meythi Elyzabet Indrawati Marpaung |
| author_facet | Aldystira Rachmawati Tan Ming Kuang Tan Kwang En Meythi Meythi Elyzabet Indrawati Marpaung |
| author_sort | Aldystira Rachmawati |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-7f31c0cdd8ec493e9754722cc0ba8de2 |
| institution | Kabale University |
| issn | 2331-1975 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj-art-7f31c0cdd8ec493e9754722cc0ba8de22025-08-20T03:29:58ZengTaylor & Francis GroupCogent Business & Management2331-19752025-12-0112110.1080/23311975.2025.2523414Building financial reporting quality through ethics, authenticity, and leadership: a study in IndonesiaAldystira Rachmawati0Tan Ming Kuang1Tan Kwang En2Meythi Meythi3Elyzabet Indrawati Marpaung4Department of Accounting, Universitas Kristen Maranatha, Bandung, IndonesiaDepartment of Accounting, Universitas Kristen Maranatha, Bandung, IndonesiaDepartment of Accounting, Universitas Kristen Maranatha, Bandung, IndonesiaDepartment of Accounting, Universitas Kristen Maranatha, Bandung, IndonesiaDepartment of Accounting, Universitas Kristen Maranatha, Bandung, IndonesiaInvestors 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.https://www.tandfonline.com/doi/10.1080/23311975.2025.2523414Financial report qualityethical leadershipauthentic leadershipethical climateIndonesiaBusiness, Management and Accounting |
| spellingShingle | Aldystira Rachmawati Tan Ming Kuang Tan Kwang En Meythi Meythi Elyzabet Indrawati Marpaung Building financial reporting quality through ethics, authenticity, and leadership: a study in Indonesia Cogent Business & Management Financial report quality ethical leadership authentic leadership ethical climate Indonesia Business, Management and Accounting |
| title | Building financial reporting quality through ethics, authenticity, and leadership: a study in Indonesia |
| title_full | Building financial reporting quality through ethics, authenticity, and leadership: a study in Indonesia |
| title_fullStr | Building financial reporting quality through ethics, authenticity, and leadership: a study in Indonesia |
| title_full_unstemmed | Building financial reporting quality through ethics, authenticity, and leadership: a study in Indonesia |
| title_short | Building financial reporting quality through ethics, authenticity, and leadership: a study in Indonesia |
| title_sort | building financial reporting quality through ethics authenticity and leadership a study in indonesia |
| topic | Financial report quality ethical leadership authentic leadership ethical climate Indonesia Business, Management and Accounting |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2025.2523414 |
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