The Effect of Key Audit Matters Disclosures on Stock Price Synchronicity With the Role of Audit Quality in LQ45 Companies from 2022 to 2025

This study examines the impact of Key Audit Matters (KAM) Disclosures on Stock Price Synchronicity and investigates the moderating role of Audit Quality (proxied by Discretionary Accruals The Modified Jones Model) among nonfinancial companies in the LQ45 stock index. Premised on Agency Theory, Signalling Theory, and Efficient Market Hypothesis, this research analyses how the communicative value of expanded auditor reporting influences the integration of firm-specific information into capital market pricing. Through the use of quantitative research approach, this study uses secondary data obtained from the audited financial statements of LQ45 companies listed on the Indonesia Stock Exchange during 2022 to 2025 and stock prices. The data are analyzed using panel data regression with a moderated model, also complemented by Random Effect Model (REM) and White period robust standard errors. The empirical findings reveal that KAM Disclosure has a positive and statistically significant effect on Stock Price Synchronicity, suggesting that greater KAM Disclosures enhance the incorporation of public information into stock prices. Furthermore, Audit Quality has negative and significant effect, indicating that higher Discretionary Accruals (which means lower Audit Quality) weaken the positive relationship between KAM and Stock Price Synchronicity. The findings provide practical implications for companies, auditors, investors, regulators, professional organizations, and future researchers regarding the importance of high-quality financial reporting and informative audit disclosures in supporting efficient capital markets.