Luhur, Bagus Samudro Aji (2026) Kualitas Audit dan Mitigasi Bias Kognitif Investor: Tinjauan Sistematis Berbasis Teori Sinyal dan Keagenan. Al-Buhuts, 22 (1). ISSN 2442-823x (Submitted)
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Abstract
This study examines audit quality as an external governance mechanism that mitigates investors’ cognitive biases in capital markets. Challenging the rational investor assumption in traditional finance, behavioral finance literature documents that investment decisions are frequently distorted by psychological biases such as overconfidence, herding behavior, and cognitive dissonance. This study aims to synthesize and explain how audit quality reduces information asymmetry and constrains irrational investor behavior by integrating Signaling Theory, Agency Theory, and Behavioral Finance. Using a SLR approach, this research analyzes peer-reviewed empirical and conceptual studies published between 2015 and 2025, sourced from Scopus, Web of Science, Emerald Insight, ScienceDirect, and SINTA-indexed journals. The results of the review indicate a consistent pattern across the literature: high audit quality mitigates investor cognitive biases through three primary mechanisms. First, audit quality enhances the credibility and precision of financial information, thereby reducing uncertainty and weakening herding behavior. Second, effective auditor monitoring disciplines managerial overconfidence and limits the transmission of optimistic bias from management to investors. Third, enhanced audit transparency—particularly through the disclosure of KAM—forces investors to confront verified risk information, reducing cognitive dissonance and confirmation bias. These findings position audit quality not merely as a compliance tool, but as a behavioral governance mechanism that supports rational investment decisions and improves market efficiency, particularly in emerging market contexts.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | Audit Quality; Cognitive Bias; Behavioral Finance; Investment Decision Making; Key Audit Matters |
| Subjects: | H Social Sciences > HF Commerce > HF5601 Accounting H Social Sciences > HG Finance |
| Divisions: | Faculty of Business and Economic > Department of Accounting |
| Depositing User: | BAGUS SAMUDRO AJI LUHUR |
| Date Deposited: | 20 Jan 2026 07:24 |
| Last Modified: | 20 Jan 2026 07:24 |
| URI: | http://repository.ubaya.ac.id/id/eprint/50157 |
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