scholarly journals Earnings quality, foreign investor and dividends

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jong Hwa Lee
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Institutional Investors ◽  
Earnings Quality ◽  
Foreign Ownership ◽  
Foreign Investor ◽  
Foreign Institutional Investors ◽  
Dividend Increases

This study discovers the relation between corporate governance factors and earnings quality and finds that increases in dividends and foreign ownership deter earnings management. The author shows that dividend increases and foreign ownership enhance earnings quality, but they appear to be substitutes in that role. In other words, as foreign ownership increases, the influence of dividends in increasing earnings quality decreases. Improving transparency through dividend increases and monitoring by foreign institutional investors are substitutes in preventing earnings management.

scholarly journals MEKANISME CORPORATE GOVERNANCE DAN MANAJEMEN LABA MODEL LONG TERM DISCRETIONARY ACCRUAL PADA PERUSAHAAN GO PUBLIK DI INDONESIA

2019 ◽  
Vol 21 (1) ◽  
pp. 55-69
Author(s):  
Wiyadi Wiyadi ◽  
Rina Trisnawati ◽  
Ecclisia Sulistyowati
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Institutional Investors ◽  
Audit Committee ◽  
Governance Mechanism ◽  
Purposive Sampling ◽  
Discretionary Accrual ◽  
Corporate Governance Mechanisms ◽  
Corporate Governance Mechanism

Penelitian ini bertujuan menganalisis pengaruh mekanisme corporate governanceinternal dan eksternal terhadap manajemen laba dengan pendekatan long termdiscretionary accrual perusahaan go publik di Indonesia yang tergabung dalamindeks LQ45 dan JII selama periode 2011-2015. Sampel penelitian berjumlah 226perusahaan diambil secara purposive sampling. Mekanisme CorporateGovernance terbagi menjadi: Mekanisme Corporate Governance internal daneksternal. Mekanisme Corporate Governance internal diproksikan dengan komiteaudit dan dewan komisaris independen. Sedangkan corporate governanceeksternal diproksikan dengan konsentrasi kepemilikan dan investor institusi.Metode analisis data menggunakan regresi linier berganda. Hasil penelitianmenunjukkan bahwa konsentrasi kepemilikan berpengaruh terhadap manajemenlaba. Sedangkan komite audit, dewan komisaris independen dan investor institusitidak berpengaruh terhadap manajemen laba.This study aims to analyze the influence of internal and external corporate governance mechanisms on earnings management with the long term discretionary accrual approach of companies incorporated in the LQ45 and JII indices during the period 2011-2015. The research sample was 226 companies taken by purposive sampling. The Corporate Governance mechanism is divided into: Internal and external Corporate Governance Mechanisms. The internal Corporate Governance mechanism is proxied by the audit committee and independent board of commissioners. While external corporate governance is proxied by the concentration of ownership and institutional investors. Methods of data analysis using multiple linear regression. The results showed that ownership concentration had an effect on earnings management. While the audit committee, independent board of commissioners and institutional investors have no effect on earnings management

scholarly journals Does CSR Moderate the Relationship between Corporate Governance and Chinese Firm’s Financial Performance? Evidence from the Shanghai Stock Exchange (SSE) Firms

2019 ◽  
Vol 12 (1) ◽  
pp. 149 ◽  
Author(s):  
Rizwan Ali ◽  
Muhammad Safdar Sial ◽  
Talles Vianna Brugni ◽  
Jinsoo Hwang ◽  
Nguyen Vinh Khuong ◽  
...  
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Financial Performance ◽  
Institutional Investors ◽  
Stock Exchange ◽  
Strategic Decision ◽  
Foreign Institutional Investors ◽  
Corporate Social ◽  
The Relationship

We have performed a focalized investigation to explore how corporate social responsibility (CSR) moderates the relationship between corporate governance and firms’ financial performance. We applied a panel regression to examine this relationship from a sample of 3400 Shanghai Stock Exchange (SSE) listed firms, based on yearly observations from 2009 to 2018. Our results show that the presence of female directors on the board is associated with improved firms’ performance and that corporate social responsibility (CSR) moderates this relation, thus indicating that sharing strategic decision-making with female board members revealed a better relationship between CSR and firms’ financial performance. Our findings showed that foreign institutional investors positively influenced firms’ financial performance and that CSR moderates the relation between foreign institutional shareholders and the firm’s financial performance. Supported by corporate governance theories, such as resource dependence and stakeholder theory, our results help to better understand the nexus among corporate governance, firms’ performance and corporate social responsibility. These findings are advantageous to government departments in emerging countries in terms of encouraging marketing practitioners and participants to implement CSR practices and change the attitude associated with CSR implications. This study highlighted the problems of the foreign institutional investors’ scheme, which was the main contribution to the financial market reform of China after 2003. These findings offer significant implications to corporate affairs executives and managers, practitioners, academicians, state officials, and policy-makers, and might provide China with the opportunity to extend its market liberalization to the global markets. This research also contributes to the existing literature, which investigates how CSR moderates the relationship between corporate governance and firms’ financial performance in the Chinese market context.

DAMPAK PENERAPAN PSAK 50/55 (REVISI 2006) TERHADAP MANAJEMEN LABA DIPERBANKAN: PERANAN CORPORATE GOVERNANCE SEBAGAI VARIABEL MODERATING

2012 ◽  
Author(s):  
Yeasy Darmayanti ◽  
Teti Susanti
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Stock Exchange ◽  
Foreign Ownership ◽  
The Other ◽  
Financial Report ◽  
Other Hand ◽  
Ownership Composition ◽  
Positive Effect ◽  
Test Result

The practicing of earnings management in banking companies certainly has pro and con's from the stockholders, because it tends to harm the users of information and the service of financial report. This research, therefore, aims to investigate the effect of application of PSAK 50/55 (2006 revision) toward earnings management with corporate governance as the moderating variable. This research was implemented in banking companies that listed in Indonesia Stock Exchange. This research used 28 banking companies that published financial report in period of 2009 — 2011 completely. The test result indicated that the application of PSAK 50/55 (2006 revision), moderation of foreign ownership, composition of commissioner council, standard of KAP and committee of audit as the moderator did not have any significance effect toward the practicing of earnings management in banking companies that listed in ISE. On the other hand, the application of PSAK 50/55 (Revision 2006) moderated by the KAP size had the positive effect toward practicing of earnings management.

Did Japanese-SOX have an impact on earnings management and earnings quality?

2015 ◽  
Vol 30 (4/5) ◽  
pp. 482-510 ◽  
Author(s):  
Masumi Nakashima ◽  
David A. Ziebart
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Reporting System ◽  
Earnings Quality ◽  
Business Environment ◽  
Real Earnings Management ◽  
Material Weakness ◽  
Content Type ◽  
Accruals Management

Purpose – The purpose of this paper is to investigate whether Japanese Sarbanes – Oxley Act (J-SOX) impacted earnings management and earnings quality of public firms in Japan. Design/methodology/approach – This archival study compares earnings management and earnings quality of firms that disclose at least one material weakness with a sample matched on size and industry without a material weakness. Findings – The authors investigate whether the differences in regulations, corporate governance and regulatory environment acceptance influence earnings management and earnings management of Japanese listed firms, relative to findings in the USA. They found the Japanese results to be slightly different from the results found in previous USA studies. First, the time-series observations suggest that while accruals management and real earnings management remained unchanged for control firms, accruals management and real earnings management increased for material weaknesses disclosing firms following J-SOX. The regression analyses suggest that accruals management for both the groups is significant in the pre-and post-J-SOX periods, but that real earnings management declined for both the groups post-J-SOX. Second, while, both accruals quality and accuracy of cash flow predictions improved in the post-J-SOX period. Research limitations/implications – The sample of Japanese firms disclosing a material weakness is small because the number of firms that disclose internal control deficiencies is decreasing in Japan. The authors have no evidence that their results are not generalizable to a larger sample and leave this for future research. Practical implications – The authors provide evidence that J-SOX, which does not have a direct reporting system, does not constrain earnings management. Their results drive the regulator to reconsider whether the reporting system works in the Japanese business environment. Additionally, their results show that J-SOX has no effect on earnings management; thus, regulators need to reconsider the governance function of directors and internal auditors. This paper communicates to the world how J-SOX works in Japan through changes in earnings quality and management post J-SOX and the root problems. Originality/value – This paper is the first (of which the authors are aware) to examine whether J-SOX impacted both earnings management and earnings quality in Japan. This paper discusses how the differences in regulations and corporate governance as well as the differences between USA-SOX and J-SOX may explain the results observed in Japan. This paper provides results regarding whether J-SOX improved earnings quality.

The influence of foreign institutional investors, institutional directors, and the share pledge ratio of directors on financial performance of tourism firms

2019 ◽  
Vol 26 (1) ◽  
pp. 179-201 ◽  
Author(s):  
Chien Mu Yeh
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Institutional Investors ◽  
Least Square ◽  
Tobin’S Q ◽  
Tobin's Q ◽  
Policy Makers ◽  
Ordinary Least Square ◽  
Tourism Sector ◽  
Foreign Institutional Investors

Corporate governance is a critical component relevant to firm performance. In the tourism sector, corporate governance is an underexamined issue. The purpose of the current study is to bridge this gap by examining the influence of foreign institutional investors, institutional directors, and shares pledged by directors on tourism firms’ financial performance. Data are derived from listed tourism firms in Taiwan. Ordinary least square regressions and two-stage least square regressions are used to examine the hypotheses. Results show that the presence of foreign institutional investors and a low share pledge ratio of directors have significant effects on return on assets and Tobin’s Q. The presence of institutional directors has a positive effect on Tobin’s Q. Implications for owners, policy makers, and investors are discussed.

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