The effect of accounting conservatism and earn-ings  management on earnings quality

The net income has been always one of the important issues that had always been a favorite among financial statement's user, and the quality and management of it have always been the focus of attention of investors and creditors. The purpose of this study is to investigate the role of conservatism and earning management in earning quality. For this purpose, the Givoly and Hayn (2000) index were used as conservative measurement criteria and the modified Jones model (1995) was used as a measure of earning's management measurement, and the Dechow and Dichev (2002) index were used as a measure of the quality of earning (earnings sustainability) of the company. The statistical population of this study is 123 companies that listed on Tehran Stock Exchange between 2009 and 2014. For testing the research hypothesis a multivariate regression analysis was used. The results of the research indicate a significant negative (invert) relation between accounting conservatism and earning's management on the quality of earnings.

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Analysis Of Conservatism Accounting And Conflict Bondholders-Shareholder Against Quality Of Profit In Indonesia And Australia And Its Comparison

Riset ◽

10.35212/riset.v2i2.57 ◽

2020 ◽

Vol 2 (2) ◽

pp. 264-276

Author(s):

Elis Asri Munggaran ◽

I Gede Sudi Adnyana

Keyword(s):

Statistical Analysis ◽

Stock Exchange ◽

Earnings Quality ◽

Financial Statements ◽

Accounting Conservatism ◽

Quality Level ◽

Significance Level ◽

Independent Variable ◽

Earning Quality

This study aims to determine the effect of accounting conservatism and the conflict of bondholder-shareholders on the companies' earnings quality that list on the Indonesian Stock Exchange (IDX) and the Australian Securities Exchange (ASX). Besides, this study also aims to determine differences in Indonesia's earning quality level and Australia financial statements. The research method used is a quantitative statistical analysis using the classic assumption test, multiple regression analysis, T-test, and F test by a significance level of 5%. This study's independent variable (X) is accounting conservatism and shareholder bondholder conflict with the dependent variable (Y), earnings quality. The result of the analysis that has been done proves that partially and simultaneously, accounting conservatism has a significant effect on the earning quality in Indonesian and Australian companies. Meanwhile, in the study of the bondholder-shareholder conflict on earning quality shows that it does not affect achieving quality. But, simultaneously, it involves reaching quality in Indonesian and Australian companies. Meanwhile, based on descriptive statistical analysis, earnings quality in Australia is better than in Indonesia.

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THE EFFECT ACCOUNTING CONSERVATISM USING LO_EKO MODEL

AJAR ◽

10.35129/ajar.v2i01.60 ◽

2019 ◽

Vol 2 (01) ◽

pp. 57-69

Author(s):

Marselinus Asri

Keyword(s):

Stock Price ◽

Stock Exchange ◽

Earnings Quality ◽

Sample Selection ◽

Accounting Conservatism ◽

Quality Data ◽

Earning Quality ◽

The Relationship ◽

Positive Effect

The purpose research is to examine other variables that also affect the relationship between conservatism and earnings quality. Data population are companies listed in Indonesia Stock Exchange during the period 2014-2017. The sample selection is based on purposive sampling method with the purpose of obtaining a representative sample. The results of this study indicate that the Instrumental Variables Conservatism has a significant positive effect on the Earning Quality. This means that management positively signals the application of accounting conservatism within the company and has an impact on improving the quality of earnings. The next investor is expected to provide more valuations by providing a high premium for the company's stock price.

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Gender diversity, financial expertise and its effects on accounting quality

Management Decision ◽

10.1108/md-02-2016-0090 ◽

2017 ◽

Vol 55 (2) ◽

pp. 347-382 ◽

Cited By ~ 24

Author(s):

Isabel-Maria García-Sánchez ◽

Jennifer Martínez-Ferrero ◽

Emma García-Meca

Keyword(s):

Earnings Quality ◽

Investor Protection ◽

Gender Diversity ◽

Accounting Conservatism ◽

Accounting Quality ◽

Content Type ◽

Board Characteristics ◽

Financial Expertise

Purpose The purpose of this paper is to analyze whether gender diversity on board and financial expertise on audit committee affect accounting conservatism in banking sector. Additionally, the authors focus on the effects of board characteristics on bank earnings quality and examine their effects on earnings persistence. Design/methodology/approach The authors use a large sample of 159 banks from nine different countries from the period 2004-2010. The authors study whether the differences in the timeliness of earnings to bad news and earnings quality across governance structures of banks are driven by differences across investor protection and bank regulation levels in banks. Findings The findings confirm the monitoring role of both female and financial experts, noting a positive effect of them on accounting conservatism and earnings quality in banks. According to the institutional characteristics, the results suggest the complementary role of banking regulation and investor protection levels in these effects, noting that in contexts of higher regulatory and greater investor protection environments, gender diversity and financial expertise on boards have more influence on the conservatism and earnings quality of banks. Originality/value The authors contribute to both the accounting quality literature and the corporate governance literature by identifying board characteristics that are associated with higher conservatism and quality of earnings in banks around the world. In addition, this study also contributes to the ethics literature by highlighting the benefits of gender diversity and financial expertise in upholding the integrity of financial reporting. Moreover, this paper adds to prior literature about board of directors and accounting quality by identifying additional complementary factors – bank regulation and investor protection – and by focusing on a specific industry, the banking industry.

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The The Influence of Audit Tenure and Audit Committee on Earnings Quality

Journal of Accounting Management and Economics ◽

10.20884/1.jame.2017.19.1.526 ◽

2018 ◽

Vol 19 (1) ◽

pp. 1

Author(s):

Fatima Zakiya Razani ◽

Liu Xia

Keyword(s):

Financial Reporting ◽

Audit Committee ◽

Stock Exchange ◽

Listed Company ◽

Negative Influence ◽

Adequate Knowledge ◽

Reporting Process ◽

Earning Quality

One of the Auditor and Audit committee role is to ensure the quality of corporate financial reporting process. This study aims to test the effect of the length of auditor tenure and audit committee on earning quality measured by the absolute value of discretionary accruals. A sample of 465 companies has been selected and data covering the period 2009-2014 has been collected from these firms, where 2325 observation were used in this analysis. The data collected form CSMAR and analyzed using GLS regression analysis. This study found that the short audit tenure on Chinese listed company in Shenzhen Stock Exchange has a significance negative influence on earning quality, meanwhile this study found that audit committee which is measure by the size of the committee does not has a significance influence on earning quality. This study suggests that auditor should have a longer tenure to gain adequate knowledge of client’s business. Moreover companies should strengthen the role of their audit committee in monitoring financial reporting process by improved their activity and financial knowledge of the member.

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Effect of Audit Quality, Managerial Ownership to Earning Quality in the Banking Company in Indonesia Stock Exchange

Business and Management Horizons ◽

10.5296/bmh.v6i2.13075 ◽

2018 ◽

Vol 6 (2) ◽

pp. 1

Author(s):

Nanang Asfufi ◽

Alwan Srikustono ◽

Whedy Prasetyo

Keyword(s):

Audit Quality ◽

Stock Exchange ◽

Earnings Quality ◽

Income Smoothing ◽

Managerial Ownership ◽

Audit Fee ◽

Independent Variable ◽

Earning Quality ◽

Research Criteria

This study examines the effect of managerial ownership, the quality of audit on the earning quality in general companies listed in Indonesia Stock Exchange during the periode 2013 to 2016. The sample of this study is companies banking general while companies included in the sample research criteria are as many as 12 companies during 4 years of research so that the total samples are 48 companies.The results of this study indicate significant results between independent variable and dependent variable showing that managerial ownership does not significantly affect the earning quality, because large ownership of shares by managerial can influence the managerial to perform income smoothing action. Furthermore, quality audit variables significantly influence the earning quality, the amount of audit fee, the auditor maintain integrity to apply a good audit procedure to detect the existence of material misstatement performed by the management so as to increase the quality of corporate profits.The conclusion of this study indicates that managerial ownership variable has no significant effect to the variable of earning quality, then the audit quality variables with audit fee have a significant effect to earnings quality in banking companies registered in Indonesia Stock Exchange.

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The Role of Accounting Conservatism in Moderating the Determinants of Earning Quality

Jurnal Dinamika Akuntansi ◽

10.15294/jda.v12i1.24482 ◽

2020 ◽

Vol 12 (1) ◽

pp. 46-54

Author(s):

Elisabeth Putri Adilya Cahyani ◽

Muhammad Khafid

Keyword(s):

Firm Size ◽

Stock Exchange ◽

Accounting Conservatism ◽

Manufacturing Companies ◽

Units Of Analysis ◽

Analysis Technique ◽

Statistical Analysis Technique ◽

Earning Quality ◽

Profit Growth

The purpose of this research is to examine the effect of liquidity, profit growth, firm size, and board of commissioners on the quality of earnings with conservatism as a moderating variable. The population of this study was the manufacturing companies listed on the Indonesia Stock Exchange in 2015-2018. Sampling of the research used purposive sampling method has obtained 59 sample companies with 4 years of observation so that 239 units of analysis were obtained. The total unit of analysis was reduced by 103 outlier data, so that the data used became 133 data. The analysis techniques used in the research were descriptive statistical analysis technique and inferential regression analysis with moderating variable. The results show that liquidity, profit growth, and the board of commissioners have no effect on the quality of earnings. Meanwhile, accounting conservatism does not moderate the effect of liquidity and firm size on earnings quality. The failure of accounting conservatism as the moderating variable in this research model is interesting to be carried out by the further research by developing the appropriate conservatism measurement according to the characteristics of manufacturing companies.

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INFLUENCE EARNING QUALITY AND LIQUIDITY OF COST OF CAPITAL

JOURNAL OF APPLIED MANAGERIAL ACCOUNTING ◽

10.30871/jama.v1i1.1247 ◽

2019 ◽

Vol 1 (1) ◽

pp. 62-69

Author(s):

Nanik Lestari ◽

Umi Rahayu

Keyword(s):

Cost Of Capital ◽

Stock Exchange ◽

Earnings Quality ◽

Capital Costs ◽

Discretionary Accrual ◽

Negative Effect ◽

Earning Quality ◽

The Cost ◽

Simple Regression

This study was conducted to investigate the effect of earnings quality and liquidity of the capital costs. To measure earnings quality is done by using Discretionary Accrual using modified Jones models (Dechow et al, 1995), while liquidity is measured using liquidity risk. The sample used in this study was 290 company listed on the Indonesia Stock Exchange in 2010-2014, using simple regression to determine the effect of earnings quality and liquidity of the capital costs. Based on the results of the hypothesis in this study, showing that (1) the quality of earnings significantly negative effect on the cost of capital, (2) liquidity no significant effect on the cost of capital, (3) control variables used are not effect information asymmetry towards the cost of capital.

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Yan Irianis VOL.6 ED 2

10.31219/osf.io/5t8j7 ◽

2019 ◽

Author(s):

Yan Irianis

Keyword(s):

Corporate Governance ◽

Data Analysis ◽

Stock Exchange ◽

Earnings Quality ◽

Institutional Ownership ◽

Managerial Ownership ◽

Manufacturing Companies ◽

Negative Effects ◽

Earning Quality

This study aims to determine the influence of book tax difference, corporate governance consisting of the independent board of commissioners, institutional ownership and managerial ownership, and liquidity on the quality of earnings in manufacturing companies listed on the Indonesia Stock Exchange. This study used a samples of 19 manufacturing companies listed on BEI in the period 2010-2014. Method of data analysis used multiple linear regression. This result indicates the simultaneously testing of obtained result that book tax difference, independent board of commissioners, institutional ownership, managerial ownership and liquidity significant effect on earning quality. Partially, book tax difference, the board of commissioners independent and influential liquidity positive and significant on earnings quality, liquidity can have negative effects and significant on earnings quality, While the ownership of institutional and managerial ownership no effect on earnings quality.

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Role of Surgical Services in Profitability of Hospitals in California: An Analysis of office of Statewide Health Planning and Development Annual Financial Data

The American Surgeon ◽

10.1177/000313481608201007 ◽

2016 ◽

Vol 82 (10) ◽

pp. 894-897 ◽

Cited By ~ 2

Author(s):

Ashkan Moazzez ◽

Christian De Virgilio

Keyword(s):

Multivariate Regression ◽

Health Planning ◽

Multivariate Regression Analysis ◽

Bivariate Analysis ◽

Financial Sustainability ◽

Net Income ◽

Surgical Services ◽

Income Statement ◽

The Relationship

With constant changes in health-care laws and payment methods, profitability, and financial sustainability of hospitals are of utmost importance. The purpose of this study is to determine the relationship between surgical services and hospital profitability. The Office of Statewide Health Planning and Development annual financial databases for the years 2009 to 2011 were used for this study. The hospitals’ characteristics and income statement elements were extracted for statistical analysis using bivariate and multivariate linear regression. A total of 989 financial records of 339 hospitals were included. On bivariate analysis, the number of inpatient and ambulatory operating rooms (ORs), the number of cases done both as inpatient and outpatient in each OR, and the average minutes used in inpatient ORs were significantly related with the net income of the hospital. On multivariate regression analysis, when controlling for hospitals’ payer mix and the study year, only the number of inpatient cases done in the inpatient ORs (β = 832, P = 0.037), and the number of ambulatory ORs (β = 1,485, 466, P = 0.001) were significantly related with the net income of the hospital. These findings suggest that hospitals can maximize their profitability by diverting and allocating outpatient surgeries to ambulatory ORs, to allow for more inpatient surgeries.

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PERAN KUALITAS LABA DALAM MEMEDIASI PENGARUH KONSERVATISME AKUNTANSI TERHADAP NILAI PERUSAHAAN

Jurnal Akuntansi Bisnis ◽

10.30813/jab.v14i1.2215 ◽

2021 ◽

Vol 14 (1) ◽

Author(s):

Kezia Octaviani ◽

Sugi Suhartono

Keyword(s):

Firm Value ◽

Earnings Quality ◽

Linear Regression Analysis ◽

Accounting Conservatism ◽

Share Price ◽

Coefficient Of Determination ◽

Manufacturing Companies ◽

Purposive Sampling

Abstract: The investor's valuation of the company's performance often only sees the stock price. High share price reflects the high value of the company as well. However, low share prices do not necessarily indicate the company's performance is poor. This research aims to analyse and know the role of quality of profit in the mediation of the influence of conservatism accounting on the firm value. Sampling techniques are performed by purposive sampling methods. Sample of 60 manufacturing companies that have been listed on the Indonesia Stock Exchange for the period 2016-2018.. The data analysis techniques undertaken are coefficient of similarity, descriptive statistics, classical assumption test, and linear regression analysis, including F-Test, T-Test, and coefficient of determination test. And to make the role of the quality of profit as a variable intervening, it is done using the analysis of pathways and Sobel tests to test indirect influences. The results showed that the quality of profit has a positive and significant effect on the firm value, accounting conservatism has a positive and significant effect on the quality of profit, while the accounting conservatism is not proven directly affect the value of the company. Based on the analysis of the track and The Sobel test shows that earnings quality can mediate the effect of accounting conservatism on firm value.Keywords: Accounting Conservatism, Earnings Quality, Firm Value Abstrak: Penilaian investor terhadap kinerja perusahaan seringkali hanya melihat dari harga saham. Harga saham yang tinggi mencerminkan nilai perusahaan yang tinggi. Namun, harga saham yang rendah tidak selalu mengindikasikan kinerja perusahaan tersebut kurang baik. Tujuan dari penelitian ini adalah untuk menganalisis peran kualitas laba dalam mediasi pengaruh konservatisme akuntansi terhadap nilai perusahaan. Pengambilan sampel menggunakan teknik non probalility sampling dengan metode purposive sampling. Sampel sebanyak 60 perusahaan manufaktur yang telah didaftarkan di BEI (Bursa Efek Indonesia) periode tahun 2016-2018. Teknik analisis data antara lain uji kesamaan koefisien, statistika deskriptif, uji asumsi klasik, dan analisis regresi linear yang meliputi uji F, uji t, dan uji koefisien determinasi. Pengujian peran kualitas laba sebagai variable intervening, dilakukan dengan analisis jalur dan uji Sobel untuk menguji pengaruh tidak langsung. Hasil penelitian membuktikan bahwa kualitas laba berpengaruh positif dan signifikan terhadap nilai perusahaan, konservatisme akuntansi berpengaruh positif dan signifikan terhadap kualitas laba, sedangkan konservatisme akuntansi tidak terbukti berpengaruh secara langsung terhadap nilai perusahaan. Berdasarkan hasil path analysis dan Uji Sobel menunjukkan bahwa kualitas laba dapat memediasi pengaruh konservatisme akuntansi terhadap nilai perusahaan.Kata kunci: Konservatisme Akuntansi, Kualitas Laba, Nilai Perusahaan.

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