The role of the audit committee in moderating the negative effect of non-audit services on earnings management among industrial firms listed on the Amman Stock Exchange

2019 ◽  
Vol 9 (3) ◽  
pp. 349
Author(s):  
N.A. Dea' ◽  
a Al Deen Omar Al Sraheen
Keyword(s):  
Earnings Management ◽  
Audit Committee ◽  
Stock Exchange ◽  
Industrial Firms ◽  
Amman Stock Exchange ◽  
Negative Effect ◽  
Non Audit Services

scholarly journals Audit Committee Accounting Expert and Earnings Management with “Status” Audit Committee as Moderating Variable

2017 ◽  
Vol 1 (2) ◽  
pp. 49 ◽  
Author(s):  
Edy Suprianto ◽  
Suwarno Suwarno ◽  
Henny Murtini ◽  
Rahmawati Rahmawati ◽  
Dyah Sawitri
Keyword(s):  
Regression Analysis ◽  
Earnings Management ◽  
Audit Committee ◽  
Annual Report ◽  
Stock Exchange ◽  
Financial Statements ◽  
Purposive Sampling ◽  
Negative Effect ◽  
The Relationship

This research aims to analyze the effect of accounting expert of audit committee on earnings management. This research also assesses the role of audit committee on earnings management with audit committee status as moderating variable. The population is all of firm’s which listed in Indonesia Stock Exchange. Purposive sampling is used to collect data. Data used financial statements and annual report companies from Indonesia Stock Exchange website. Moderated regression analysis (MRA) is used to analyze the hypothesis. The result shows that accounting expert of audit committee has negative effect on earnings management. Yet, variable of audit committee status cannot moderate the relationship between accounting expert of audit committee and earnings management in Indonesia.

scholarly journals The Impact of Earnings Management on Stock Returns for Listed Industrial Firms on the Amman Stock Exchange

2019 ◽  
Vol 9 (3) ◽  
pp. 1
Author(s):  
Ahmed M. Al Omush ◽  
Walid M Masadeh ◽  
Rasha M. Zahran
Keyword(s):  
Earnings Management ◽  
Stock Returns ◽  
Management Practices ◽  
Stock Exchange ◽  
Financial Statements ◽  
Industrial Firms ◽  
Significance Level ◽  
Amman Stock Exchange ◽  
Study Population ◽  
Operating Cash Flow

This study aims to investigate the impacts of earning management on the stock returns of listed industrial firms on the Amman Stock Exchange, with the observance of (firm size and operating cash flow) as control variables for the study. In order to fulfill the purposes of this study, the researcher utilized (Jones model) and (Modified Jones model) to measure earning management through reliance on discretionary accruals as evidence of earnings management practices, and utilize (Market Return On the Stock model) to measure stock returns, and the study population was Mining and Extraction Industries firms also Food and Beverages firms listed in Amman Stock Exchange, the study was conducted on a sample of 18 firms which represents 75% of the study population for the period from 2014 to 2018, In addition to using descriptive and analytical approach to data collection, analysis, and testing hypotheses through financial statements of the firms in the study, the researcher has used the Statistical Package for Social Sciences (SPSS) program to test the hypotheses. This study creates many results some of which are: there is an insignificant relationship between earnings management practices and stock returns for listed industrial firms in Amman Stock Exchange during the study period at the significance level of 5%, Which reflects the poor efficiency in Amman Stock Exchange and not the information contained in the financial statements issued and therefore not impact stock prices, which in turn affects the stock returns, and there is an insignificant relationship between stock returns and operating cash flow at the level of significance of 5%, In addition found significant correlation between firm size and stock returns at the significance level of 1%. The researcher presented a set of recommendations; the following are most valuable: the importance of increasing the awareness of the relevant parties about the unreliability of financial statements issued by industrial companies listed on the Amman Stock Exchange in existence of the earnings management practice and not reflecting the information contained in the financial statements on prices and stock returns by holding seminars, conferences and meetings also Activating the role of audit committees further to be able to detect the practice of earnings management and decrease it.

scholarly journals PERAN GOOD CORPORATE GOVERNANCE DALAM MEMINIMALISIR TERJADINYA FINANCIAL DISTRESS

BISMA ◽  
2021 ◽  
Vol 15 (1) ◽  
pp. 36
Author(s):  
Wulan Maulidiss Sa’diah ◽  
Mohamad Nur Utomo
Keyword(s):  
Board Of Directors ◽  
Financial Distress ◽  
Audit Committee ◽  
Stock Exchange ◽  
Managerial Ownership ◽  
Agency Conflicts ◽  
Good Corporate Governance ◽  
The Board Of Directors ◽  
Negative Effect

This study aims to determine the effect of managerial ownership, independent board of commissioners, board of directors, and audit committee on financial distress in banking companies listed on the Indonesia Stock Exchange from 2015 to 2019. This research used the purposive sampling method with a sample of 41 companies consisting of 205 observational data. Data were analyzed using logistic regression. The results showed that independent board of commissioners and board of directors had a significant and negative effect on financial distress. However, managerial ownership and audit committee did not have a significant effect on financial distress. This study supports the agency theory, which states that the monitoring role of the independent board of commissioners and the board of directors can minimize the occurrence of agency conflicts in a company. Keywords: audit committee, board of directors, financial distress, independent board of commissioners, managerial ownership

scholarly journals Audit Committee and Earnings Management: The Role of Gender

2020 ◽  
Vol 23 (3) ◽  
pp. 379
Author(s):  
Widya. A. Sudarman, Widi Hidayat
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Audit Committee ◽  
Stock Exchange ◽  
Risk Averse ◽  
Gender Theory ◽  
Reporting Process ◽  
Selection Of

This study has a purpose to investigate the effect of committee audit on earnings management. Using a sampel of companies companies listed in Indonesia Stock Exchange (IDX) 2013-2017. Results of this study shows that gender of audit committee significantly effect earnings management, it explains that female on audit committee are more careful and allow for discretion in terms of financial reporting. The results explain gender theory that women are more risk averse and ethical than men. This research provides new insights for management so that they can consider gender in the selection of committee audit to be appointed by the company with regard to the financial reporting process.

scholarly journals The impact of audit quality, corporate governance, and company characteristics on earnings management

2021 ◽  
Vol 11 (1) ◽  
pp. 107-112
Author(s):  
Yousef Shahwan
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Free Cash Flow ◽  
Statistical Testing ◽  
Return On Assets ◽  
Industrial Firms ◽  
The Impact

This study aims to investigate empirically how the characteristics of the firm; the audit quality and the corporate governance impact the management of earnings. The population employed in this study is industrial firms listed on the Amman Stock Exchange between 2017 and 2019. The method of sampling employed in this study is purposive sampling. 39 firms are analyzed, with 117 items of data being achieved. Also, this study applies statistical testing via multiple regression. The findings show that sales growth, free cash flow, financial leverage, and return on assets all have an impact on earnings management. Meanwhile, other factors such as audit quality, firm size, audit committee, the board size, institutional ownership, and managerial ownership, have not to impact on earnings management.

scholarly journals The Role of the Audit Committee On the Performance of Indonesian State-Owned Enterprises (BUMN) Registered on the Indonesia Stock Exchange

2020 ◽  
Vol 1 (2) ◽  
pp. 131
Author(s):  
Mochamad Muslih
Keyword(s):  
Agency Theory ◽  
Quantitative Research ◽  
Audit Committee ◽  
Stock Exchange ◽  
Committee Report ◽  
Company Performance ◽  
Quantitative Research Methods ◽  
Negative Effect ◽  
Positive Effect

<p><span lang="IN">It has never been thoroughly investigated whether the existence of the Audit Committee on the SOE board of commissioners is truly as beneficial as expected. Based on research that has been done, there is still a diversity of opinions regarding the effect of audit committee characteristics on company performance. The purpose of this study is to study whether audit committee size and number of audit committee meetings affect company performance. The grand theory of this research is agency theory or agency theory and corporate governance. This research uses quantitative research methods. Data processing is performed using eviews 9. The unit of analysis is the company. The sample is 20 (twenty) SOE</span><span lang="EN-US">s</span><span lang="IN"> registered on the Indonesia Stock Exchange from 2013 to 2018. The sample must also be BUMN that has a complete Audit Committee report. The results showed that the number of chairpersons and members of the audit committee had a positive effect on company performance, the number of audit committee meetings had no significant effect on company performance, and the size of the company had a significant negative effect on company performance.</span></p>

scholarly journals Effect of Independent Commissioners and Characteristics of Audit Committee on Profit Quality with Earning Management as Intervening Variables

2020 ◽  
Vol 03 (12) ◽  
Author(s):  
Theresia Trisanti ◽  
Keyword(s):  
Earnings Management ◽  
Audit Committee ◽  
Stock Exchange ◽  
Earnings Quality ◽  
Manufacturing Companies ◽  
Accrual Quality ◽  
Negative Effect ◽  
The Impact ◽  
Intervening Variables ◽  
Positive Effect

This research objectives is determine whether the audit committee's expertise and the numbers of independent commissioners affect the quality of earnings through earnings management as an intervening variable. Earnings management model using the Modified Jones and earnings quality variables use accrual quality indicators. The study’s population are manufacturing companies listed on the Indonesia Stock Exchange from 2014-2018. The sample of this study selected using purposive sampling method. The results of this study indicate that audit committee expertise has an insignificant negative effect on earnings management and earnings quality, the number of independent commissioners has a significant negative effect on earnings management and has a positive effect on earnings quality. While earnings management has an insignificant positive effect on earnings quality. Therefore, earnings management does not mediate the impact between audit committee expertise and number of independent commissioners on earnings quality as intervening variables.

scholarly journals PENGARUH KOMPETENSI KOMITE AUDIT, AKTIVITAS KOMITE AUDIT DAN KEPEMILIKAN INSTITUSIONAL TERHADAP MANAJEMEN LABA

2016 ◽  
Vol 4 (1) ◽  
pp. 66
Author(s):  
Metta Kusumaningtyas ◽  
Dessy Noor Farida
Keyword(s):  
Regression Analysis ◽  
Earnings Management ◽  
Audit Committee ◽  
Sampling Method ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Manufacturing Companies ◽  
Discretionary Accrual ◽  
Negative Effect ◽  
Institutional Shareholders

The objective of this study is to analyze the influence of audit committee and institutional ownership on earnings management. The characteristics that used to measure the effectiveness of the audit committee competence,and audit committee activity. Institutional ownership is measured by the number of proportion of shares held by institutional shareholders divided by the number of shares issued. Earnings management in this study weremeasured by using the value of discretionary accrual. The population in this study is manufacturing companies listed on the Indonesia Stock Exchange (BEI) in 2007-2012. Based on purposive sampling method, the number of samples in this study of 300 samples. Testing the hypothesis using multiple regression analysis. The results of hypothesis testing indicate that audit committee competence and audit committee activity had a significant negative effect on earnings management. Instead institutional ownership had not influence on earnings management.

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