Explaining Financial Reporting Quality and Cost of Capital: Dual Board Member Characteristics in the Context of a Staged IFRS Convergence Setting

This study investigates Indonesia's staged convergence to International Financial Reporting Standards in conjunction with the boardroom presence of academics and females, to evaluate the impacts on financial reporting quality and cost of capital. The findings indicate that a higher proportion of academics on the board of directors and females on the board of commissioners is associated with decreased earnings management apart from companies with state ownership. Surprisingly, a higher proportion of academics on the board is associated with a higher cost of capital. The findings also show academics on the board of directors improved tax compliance during the tax amnesty.