scholarly journals The Type I Versus Type II Agency Conflict on Earnings Management

2017 ◽  
Vol 8 (1) ◽  
Author(s):  
Yavida Nurim ◽  
Sunardi Sunardi ◽  
Rini Raharti
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Published Data ◽  
Type I ◽  
Type Ii ◽  
Governance Mechanism ◽  
Agency Conflict ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism ◽  
Corporate Governance Quality

Tis study aims to detect the background of earnings management behavior in which it shows the tendency of type I or II agency conflict. The high ownership concentration of firms in In-donesia leads type II agency conflict, but the good corporate governance formulation assumes conflict between management and shareholders. This study uses published data in IDX from 2009–2014. TThe result reveals that reputation quality has negative significant correlation to earnings management behaviors, but corporate governance quality has insignificant correlation to earnings management, except percentage of independent commissioner board in moder-ate level. It has implication that management faces type II agency conflict. The majority may monitor management directly, so the finding reveals that independent commissioner board’s function is not optimum as part of corporate governance mechanism. According to the evi-dence, corporate governance formulation, especially in Indonesia, should be needed for reduc-ing earnings management on type II tendency.

scholarly journals Good corporate governance and earnings management in Indonesian initial public offerings

2016 ◽  
Vol 13 (4) ◽  
pp. 558-565
Author(s):  
Tatang Ary Gumanti ◽  
Ari Sita Nastiti ◽  
Ayu Retsi Lestari
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Initial Public Offerings ◽  
Management Practices ◽  
Governance Mechanism ◽  
Public Offerings ◽  
Listed Firms ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanisms ◽  
Corporate Governance Mechanism

This study investigates the relationship between corporate governance mechanisms and earnings management (as measured by discretionary current accruals) for Indonesian IPO firms. Previous studies have mainly focused on an examination of the effect of corporate governance on the earnings management of publicly traded firms, whilst this study examines newly listed firms. It employs a modified Jones model to measure earnings management as developed by Tykvova (2006). The hypothesis predicts that Indonesian IPO firms with good corporate governance will engage in less earnings management in the periods prior to the IPO year. The sample consists of 75 IPOs and the results show that the proportion of board of commissioners, public ownership, institutional ownership and managerial ownership constrain the extent of earnings management of IPO firms. This study contributes to the literature in showing that corporate governance mechanism is an important determinant in earnings management practices for Indonesian IPO firms.

scholarly journals Pengaruh Penerapan Mekanisme Good Corporate Governance Terhadap Praktik Manajemen Laba Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia

2009 ◽  
Vol 1 (1) ◽  
pp. 28
Author(s):  
Elfrida Ambarita ◽  
Dian Anita Nuswantara
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Management Practices ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
Management Practice ◽  
Governance Mechanism ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism

AbstractThe conflict of interest between agent and principal, asymmetrical information and accounting method selection are able to be used by the manager to do earning management practices. However, it could be reduced by practicing the good corporate governance mechanism which can adjust agent and principal’s interest. The objective of this study is to test the effect of good corporate governance mechanism, as reflected by institutional ownership, managerial ownership, presence of independent board and audit committee existence on the earnings management practice. Using sample from 62 companies in the manufacturing sector at the Jakarta Stock Exchange, which publish financial statement from 2005-2006. This study shows that good corporate governance mechanism insignificantly influence earnings management practice simultaneously. We can infer that mechanism haven’t succeeded to minimize the earnings management practices. 

scholarly journals PENGARUH MEKANISME GOOD CORPORATE GOVERNANCE TERHADAP MANAJEMEN LABA

2017 ◽  
Vol 7 (2) ◽  
pp. 1067 ◽  
Author(s):  
Yusuf Mangkusuryo ◽  
Ahmad Waluya Jati
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Managerial Ownership ◽  
Governance Mechanism ◽  
Test Results ◽  
Institutional Leadership ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism ◽  
Independent Audit

This study aimed to determine the effect of Good Corporate Governance mechanism towardearnings management that is proxied with discretionary accruals (DTA). The GCG mechanismis proxied with managerial ownership (KM), institutional leadership (KI), independent board ofcommissioner (DKI) and independent audit committee (KAI). The sample used in this studywere 11 companies registered in CGPI for three years starting from 2013 to 2015.To knowwhether the above GCG variables have an effect on earnings management, multiple linearregression test using SPSS 2.1 program. The test results show that only managerial ownershipvariables has significantly influence to earnings management. While other variables such asinstitutional ownership (KI), independent board of commissioner (DKI), and independent auditcommittee (KAI) have no significant effect to earnings management.Keyword: Good Corporate Governance, managerial ownership, institusional leadership, independent board of commisioner, independent audit committee, earning management.

Corporate Governance Mechanism on Financial Performance (Evidence from the Indonesia’s Listed State-owned Enterprises)

2021 ◽  
Vol 1 (1) ◽  
pp. 24-34
Author(s):  
Anak Agung Kompiyang Ratih Maldini ◽  
Pananda Pasaribu ◽  
Christian Haposan Pangaribuan
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Governance Structure ◽  
Board Independence ◽  
Governance Mechanism ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism ◽  
The Impact

Objective – This study aims to find the impact of privatization, which proxied by good corporate governance toward the financial performance of SOEs in Indonesia. Methodology – This study used 16 privatized SOEs that are listed in Indonesia Stock Exchange and also 16 privatized non-SOEs as the comparison. The data is collected from the year 2014 to 2018 and analyzed by using multiple regression panel data. Findings – This study found that director size and board independence have a positive impact toward SOEs financial performance. The director size and board independences have a positive significant impact toward the SOEs financial performance while the privatized non-SOEs is not significantly affected Novelty – This study examines proper governance structure in SOEs and non-SOEs, thus providing new insights about good corporate governance regulation in the Indonesian context.

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 Impact of Corporate Governance Mechanism in Mitigating Creative Accounting Practice of Listed Conglomerate Companies in Nigeria

2021 ◽  
pp. 39-50
Author(s):  
Abdulrahman Bala Sani ◽  
Ruth Oluwayemisi Owoade
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Board Independence ◽  
Managerial Ownership ◽  
Governance Mechanism ◽  
Board Size ◽  
Accounting Practice ◽  
Creative Accounting ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism

This study examined the impact of corporate governance mechanism in mitigating creative accounting practice of listed conglomerate companies in Nigeria. The study used Secondary data obtained from the company’s annual reports and accounts for the period 2013 to 2020. The population of the study includes six conglomerate companies listed on the Nigeria Stock Exchange and the entire population was used for the study. The dependent variable creative accounting was measured using discretionary accruals as estimated by modified Jones model. The independent variable corporate governance mechanism was proxied by audit committee, board size, board independence, managerial ownership. Multiple regression technique was employed for the panel data analysis using Stata version 13 statistical tools. Findings of the study revealed that audit committee has negative significant impact on creative accounting practice. Managerial ownership has significant positive impact on creative accounting practice. Board size and board independence has no significant impact on creative accounting practice of listed conglomerate companies in Nigeria. The study concludes that good corporate governance have impact on creative accounting practice. Based on these findings, the study recommends that companies are to effectively apply good corporate governance mechanism. They should have an independent audit committee, so as to minimize creative accounting practice.

scholarly journals The Effect of Good Corporate Governance Mechanism On The Financial Performance of Banking Companies Listed In Stock Exchange Indonesia 2012-2016

2019 ◽  
Vol 3 (2) ◽  
pp. 273-287
Author(s):  
Desi Pipian Pujakusum
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Governance Mechanism ◽  
Return On Assets ◽  
Good Corporate Governance ◽  
The Board Of Directors ◽  
Corporate Governance Mechanism

This study aims to examine the effect of good corporate governance mechanism on the financial performance of banking companies listed on the Indonesian Stock Exchange 2012-2016 period. The corporate governance mechanism is proxied by the size of the board of directors, the size of the board of commissioners, audit committee size, the board of director's education, and the board of commissioner’s education. The company's financial performance is proxied by return on assets (ROA). Samples were taken by using purposive sampling. The total number of samples used in this study amounted to 180 research samples. This study was tested with SPSS 20 program. Data analysis technique used in this research is simple regression analysis.  The results showed that the size of the board of directors, the size of the board of commissioners, and audit comitee size have a significant effect on return on assets. These three factors have a significant effect on return on assets, while the board of commissioners education and the board of director's education have no significant effect on return on assets.

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