Pengaruh Pengungkapan Key Audit Matters terhadap Kualitas Laba dengan Leverage sebagai Variabel Moderasi pada Perusahaan yang Terdaftar di Bursa Efek Indonesia

Abstract

This study examines the effect of Key Audit Matters (KAM) disclosure on earnings quality, with leverage serving as a moderating variable, using a sample of 37 publicly listed companies on the Indonesia Stock Exchange (IDX) during the 2022–2024 period, resulting in 111 balanced panel observations. Earnings quality was measured using the Operating Cash Flow to Net Income (CFO/NI) ratio, KAM disclosure was proxied by the number of KAMs reported in the independent auditor’s report, and leverage was measured by the ratio of total liabilities to total assets. Panel data regression analysis was employed, with the Common Effect Model (CEM) selected as the most appropriate model based on the Chow and Lagrange Multiplier tests. The findings indicate that KAM disclosure has a negative and significant effect on earnings quality. Leverage also has a negative and significant effect on earnings quality. However, the interaction between KAM disclosure and leverage is positive and significant, indicating that leverage acts as a quasi-moderating variable that strengthens the relationship between KAM disclosure and earnings quality. The model explains 22.12% of the variation in earnings quality. These findings suggest that broader KAM disclosure is perceived by market participants as a signal of higher business risk and operational complexity, particularly among highly leveraged firms. This study contributes to the audit communication literature by demonstrating that the informational value of KAM disclosures is context-dependent and influenced by a firm's financial leverage, while also providing practical implications for auditors, corporate management, and investors in evaluating earnings quality.