Abdul Haris Muhammadi
Doctor of Philosophy, (Accountancy)
Study Completed: 2016
Massey Business School
Citation
Thesis Title
Three essays on political connections, financial reporting, and auditing–Evidence from Indonesian listed companies
Read article at Massey Research Online:
Mr Muhammadi examined the association between political connections and Related Party Transactions (RPTs), whether politically-connected firms use RPTs to tunnel resources and mask ‘true’ operating performance, and how these associations determine auditor choice. His research was motivated by conflicting views on whether political connections are beneficial or detrimental to stakeholder interests and whether politically-connected firms will appoint the Big Four audit firms or non-Big Four auditors. Research findings revealed that firms with political connections conduct more RPTs compared to firms without political connections. His research provided empirical evidence that politically-connected firms use RPTs to tunnel resources, and to engage in income-increasing earnings management designed to mask tunnelling activities. In addition, Mr Muhammadi reported that firms with political connections in Indonesia tend to choose non-Big Four auditors and that RPTs have a significant influence on the appointment of auditors of politically-connected firms.
Supervisors
Professor Ahsan Habib
Dr Haiyan Jiang
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Last updated on Monday 04 April 2022