Elvira Luthan

This study aims to provide empirical evidence about the determinants that can impact earnings management, through board diligence, ownership concentration, CEO ownership, and CEO tenure, as well as testing conservatism as a moderating variable. Secondary data, specifically information derived from annual financial reports, are utilized in this study. Information for financial reports is acquired from the Indonesia Stock Exchange (IDX) data stream and website from 2013 to 2022, the population of this study comprises all banking institutions listed on the Indonesia Stock Exchange. This study’s findings demonstrate that the presence of board diligence significantly hinders earnings management. Moreover, the findings of this study demonstrate that organizations characterized by a significant concentration of ownership will have the capacity to mitigate the prevalence of earnings management practices. Additionally, this study’s findings demonstrate that a reduction in earnings management activities is associated with greater CEO ownership. The findings of this study offer a practical illustration for stakeholders regarding the responsibilities of shareholders, which may prove beneficial in overseeing an organization’s operations. This study shows that high conservatism in companies actually mitigates the good effects of the ownership concentration and CEO ownership variables on earnings management. In summary, this study establishes that companies characterized by elevated levels of conservatism do not actively engage in earnings management practices that are beneficial to the organization.

Acknowledgment
This research received no specific grant from any funding agency in the public, commercial, or non-profit sectors.

Type of the article: Research Article

Abstract
This study examines whether Environmental, Social, and Governance (ESG) performance enhances stock returns directly or indirectly through firm fundamentals in an emerging market context. The analysis focuses on non-financial firms listed on the Indonesian Stock Exchange (IDX) over the period 2014–2023, following the expansion of sustainability reporting regulations in Indonesia. The final sample comprises 4,037 firm-year observations, of which 477 contain available ESG scores obtained from a third-party rating database. Panel data regression models with firm-level controls and mediation analysis are employed to test both direct and indirect relationships. The empirical results indicate that ESG performance has a positive and statistically significant effect on total factor productivity (TFP) and return on assets (ROA), suggesting that sustainability practices are associated with improvements in operational efficiency and profitability. In turn, both TFP and ROA exhibit positive and significant effects on stock returns. However, ESG does not demonstrate a statistically significant direct effect on stock returns after controlling for firm fundamentals. Mediation analysis confirms that ESG influences stock returns indirectly through productivity and profitability channels, with productivity emerging as the stronger transmission mechanism. These findings suggest that, in the Indonesian capital market, ESG operates primarily as a fundamental value-enhancing mechanism rather than as an independent pricing signal. Sustainability performance contributes to shareholder value when it strengthens firms’ internal efficiency and financial resilience, highlighting the importance of fundamental performance channels in emerging markets.

Type of article: Research Article

Abstract
This study aims to investigate the determinants of audit delay among real estate and property companies listed on ASEAN stock exchanges during the 2020–2025 period. Although the timely issuance of financial reports is important for attracting investor confidence and helping firm transparency, prior empirical evidence on the determinants of audit delay in the ASEAN context remains inconclusive. Drawing on Agency Theory, Signaling Theory, and Institutional Theory, this study examines whether audit fees, profitability, audit tenure, audit opinion, audit committee expertise, auditor reputation, and firm size influence the existence of audit delay.
This study uses panel data from Refinitiv Eikon and company annual reports, including 254 companies and 1,524 company-year observations. A Random-Effects Logistic Regression model, which accounts for the panel data structure and unobserved heterogeneity across companies, is used for hypothesis testing because the dependent variable is dichotomous.
The findings conclude that while profitability, audit tenure, and audit committee skill do not significantly influence audit delay, audit fees, audit opinions, auditor reputation, or firm size do. These results suggest that audit-process variables are more important in predicting audit timeliness than corporate governance procedures or performance characteristics.
By providing cross-national empirical data from the ASEAN region, this study contributes to the expanding literature on audit delays. Additionally, by enhancing audit quality and implementing more efficient financial reporting procedures, the findings provide regulators and industry professionals with useful recommendations to improve financial reporting timeliness.

Acknowledgment
The authors gratefully recognise the financial assistance provided by the Institute for Research and Community Service (LPPM), Universitas Andalas, under the Flagship Research Scheme (PUJK), Batch I, through Contract No. 295/UN16.19/PT.01.03/PTM/2024. The authors also express their sincere appreciation to the Faculty of Economics and Business, Universitas Andalas, for the institutional funding and accommodations that supported the successful completion of this study.