Effects of Company Size, Company Age, Audit Committee, and Auditor Quality on Sharia Information Disclosure Compliance -An Indonesian Sharia ’Financial Industry Evidence
This manuscript describes the research investigated the effect of company size, company age, audit committee independence, and auditor quality on compliance with sharia information disclosure in sharia ﬁnancial institutions in Indonesia. Compliance disclosure is proxied by the Shariah compliance index adopted from previous studies and adjusted to sharia regulations and principles issued by the National Sharia Board. Firmsizeismeasuredbythenaturallogofcompanyassets,company ageis measured since the company was established until now, independence of audit committees is measured based on the percentage of external audit committee members,and auditor quality is measured using a dummy variable worth 1 if the company is audited by Big public accounting ofﬁce 4 and given a value of 0 if the opposite. This study uses data from Islamic ﬁnance companies listed on the capital market for 2014 to 2016. The results of the study show that company size and company age have a positive effect, but external auditor quality has a negative effect on compliance with sharia information disclosure, while the independence of audit committee members has no effect towards compliance with sharia information disclosures. The results of this study are expected to contribute in the form of completing the literature on the level of disclosure ofIslamicinformationthatmustbedisclosedbyIndonesianIslamicﬁnancialinstitutions.
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