Integrity of Financial Statement: Leverage and Corporate Governance using Firm Size as Mediating Variable

The main objective of this research is to preserve the integrity of financial statements by examining the impact of leverage and corporate governance as mediated by firm size. This study is an association research style that collects data from documentary studies focusing on the industrial products sector between 2020 and 2022. Purposive sampling was used with non-probability sampling to create a sample of 26 companies.
Path analysis and the Sobel test method are used in the data analysis process. The discoveries show that there is no significant relationship between leverage and firm size. On the other hand, corporate governance substantially enhances firm size. Furthermore, the findings suggest that both leverage and corporate governance considerably impact the credibility of financial statements. On the other hand, the integrity of financial statements is not much impacted by the size of the firm. As a result, the relationship among leverage, corporate governance, and the integrity of financial statements cannot be mediated by firm size