scholarly journals The Differential Choice Of Chaebol In Earnings Management

2015 ◽  
Vol 31 (5) ◽  
pp. 1909 ◽  
Author(s):  
Youngeun Hong ◽  
Taewoo Kim ◽  
Jongkook Park
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Positive Relationship ◽  
Negative Association ◽  
Real Earnings Management ◽  
Negatively Associated ◽  
Real Activities Manipulation

This study examines the methods of the differential choice of Korean chaebol in earnings management. Consistent with our prediction, we find a negative association between chaebols ownership and accrual-based earnings management, whereas there is no clear difference between chaebols ownership and real-based earnings management. Furthermore, we find evidence that chaebols exhibit a strongly positive relationship with overproduction-based real activities manipulation, indicating that chaebols prefer overproduction as a method of real earnings management. From additional analyses, we also find that abnormal cash flow from operations is negatively associated with suspect chaebol firm-years that just met zero.

PENGARUH MANAJEMEN LABA TERHADAP ABNORMAL RETURN

2009 ◽  
Author(s):  
Zirman Zirman ◽  
Lily Lily
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Significant Influence ◽  
Stock Price ◽  
Abnormal Return ◽  
Real Earnings Management ◽  
Financial Statement ◽  
Discretionary Accrual ◽  
Stock Price Reaction ◽  
Flow Components

This research investigates the consequence of earnings management by analyzing stock price reaction to the full set financial statement in 2008 which can be used by investors to detect earnings management by the firms. This research investigated two forms of earnings management (accrual and real earnings management). The samples is drawn from firms in IDX Statistic 2008 which categorized as active in frequency, value or volume. The method of analysis of this research used multi regression. The results show (1) discretionary accrual had negative significant influence to abnormal return, (2) abnormal cash flow from operation had negative significant influence to abnormal return. The results implicate that the investors are aware of the accrual earnings management (discretionary accrual) and real earnings management (abnormal cash flow) components in the earnings reported by the firms and they react negative to this components.

scholarly journals Salivary Oxytocin Is Negatively Associated With Religious Faith in Japanese Non-Abrahamic People

2021 ◽  
Vol 12 ◽  
Author(s):  
Junko Yamada ◽  
Yo Nakawake ◽  
Qiulu Shou ◽  
Kuniyuki Nishina ◽  
Masahiro Matsunaga ◽  
...  
Keyword(s):  
Standard Deviation ◽  
Positive Relationship ◽  
Religious Faith ◽  
Well Being ◽  
Negative Association ◽  
Negatively Associated ◽  
Neuropeptide Hormone

Spirituality and religiosity have a significant impact on one's well-being. Although previous studies have indicated that the neuropeptide hormone oxytocin is associated with spirituality/religiosity, existing findings remain inconsistent. Some studies have reported a positive relationship between oxytocin and spirituality/religiosity, while other studies have reported a negative association. Herein, we examined the association between endogenous oxytocin and spirituality/religiosity in 200 non-Abrahamic Japanese individuals (102 females, mean age ± standard deviation = 41.53 ± 10.46) by measuring the level of salivary oxytocin and spiritual/religious faith. We found that the level of salivary oxytocin was negatively associated with spiritual/religious faith. Individuals with higher levels of salivary oxytocin tend to have more negative spiritual/religious faith compared with those with low oxytocin levels (e.g., “Spirituality/religiosity makes people passive and clinging.”). Moreover, this tendency was only significant in individuals who were not interested in a specific religion. The uniqueness of spirituality/religiosity in Japan could help interpret the current findings.

The Effect of Board of Director Composition and Audit Committee Expertise on The Real Earnings Management in Indonesia

2020 ◽  
Vol 2 (1) ◽  
pp. 110-117
Author(s):  
Feby Astrid Kesaulya ◽  
Weny Putri ◽  
Dewi Sri
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Good Governance ◽  
Real Earnings Management ◽  
The Real ◽  
Board Of Director ◽  
Good Corporate Governance ◽  
Board Director ◽  
Real Activities Manipulation

The Objective of this research was to prove that the implementation of good corporate governance will have an effect on the real activities manipulation which was done by the management. The implementations of good governance used by this research are board of director composition and audit committee expertise. This research was conducted in Indonesia by using 306 firm years’ observations. The result of this research showed a different result from previous researches. This research showed that the implementation of good corporate governance in the form of board director composition and audit committee expertise do not impact the practice of real activities manipulation. Or, in other words some of the good corporate governance tool could not mitigate the real activities manipulation in the company.

Research on Decision-Making Behavior of Analysts Coverage and Real and Accrual Earnings Management Based on SPSS Software Technology

2013 ◽  
Vol 411-414 ◽  
pp. 2571-2575
Author(s):  
Bo Xu ◽  
Kai Li ◽  
Lv Liu
Keyword(s):  
Decision Making ◽  
Earnings Management ◽  
Cash Flow ◽  
Real Earnings Management ◽  
Software Technology ◽  
External Governance ◽  
Cash Flow Volatility ◽  
Spss Software ◽  
Decision Making Behavior

The paper researches if decision-making behavior of analysts coverage can influence the earnings management of companies. The study selected 3727 samples and used SPSS software regression technology. The results indicate that a higher level of analysts coverage is related to lower accrual earnings management and real earnings management,which suggests that analysts have supervisory function to companies and can play an efficient external governance role to investor protection.The results also indicates that the larger companies eager to adopt real earnings management whereas the smaller companies would like to use accrual earnings management, and the enterprises with higher cash flow volatility are eager to adopt earnings management due to unstable operation .

Signaling Versus Free Cash Flow Theory: What Does Earnings Management Reveal About Dividend Initiation?

2017 ◽  
Vol 34 (2) ◽  
pp. 284-308 ◽  
Author(s):  
Deborah Drummond Smith ◽  
Anita K. Pennathur
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Stock Price ◽  
Flow Theory ◽  
Free Cash Flow ◽  
Real Earnings Management ◽  
Accrual Quality ◽  
Dividend Payout ◽  
Stock Price Reaction ◽  
Prior Literature

We examine earnings manipulation via discretionary accruals and real earnings management prior to the release of cash reserves back to shareholders. Previous research indicates that firms manage earnings upward when they increase dividends, creating a coordinated signal to the market. We study earnings management surrounding dividend initiation to determine whether management is manipulating earnings downward to avoid the discipline imposed by dividends in the years ahead or whether they are signaling to the market. We suggest that the aim of earnings management is not to reduce earnings but that earnings are more likely managed to preserve financial flexibility, create earnings reserves, and postpone shareholders’ expectations for initiating recurring dividends. Rather than signaling with upward earnings management, we find that dividend initiating firms manage earnings downward, consistent with the free cash flow theory. Our results explain findings in prior literature for the surprisingly stable earnings performance and accrual quality in the period just after dividend initiation. Furthermore, the market day stock price reaction is inversely related to earnings management, contradicting the purpose of signaling. We provide evidence that the managerial inertia for initiating dividends represents unique agency concerns compared with an increase in existing dividend payout and to the extent that downward real earnings management does not reverse, we identify a cost to shareholders for the quasi contract of recurring dividend payout.

scholarly journals Determinan Praktik Manajemen Laba Riil

2018 ◽  
Vol 14 (2) ◽  
pp. 110-120
Author(s):  
Koerniawan Dwi Wibawa ◽  
Bambang Subroto ◽  
Wuryan Andyani
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Management Practices ◽  
Audit Quality ◽  
Cash Flows ◽  
Negative Influence ◽  
Positive Influence ◽  
Production Costs ◽  
Real Earnings Management ◽  
Financial Disclosure

The aim of this study was to examine the effect of the level financial statement disclosure on earnings management and audit quality in moderating this study. The sample of this study was from LQ45 companies, especially in manufacturing as many as 9 companies with an observation period of 5 years (2012-2016). This study provided empirical evidence that a negative influence between the level of disclosure of financial statements and real earnings management used production costs. But with the proxies of operational cash flow and discretionary costs produce provided a positive relationship. The results of the moderation regression test with production costs as proxy of earnings management provided that audit quality can strengthen the negative effect of the financial disclosure level on earnings management. Other results indicate that audit quality can strengthen the positive influence of the financial disclosure level on earnings management with a proxy for operational cash flows and discretionary costs. The Managerial implications of research was that auditors can examine other factors besides operational cash flow and discretionary costs in carrying out judgment on earnings management practices in the company.  

scholarly journals Corporate Tax Avoidance, Free Cash Flow and Real Earnings Management: Evidence from Nigeria

2021 ◽  
Vol 9 (1) ◽  
pp. 86-97
Author(s):  
Ahmad Haruna Abubakar ◽  
Noorhayati Mansor ◽  
Wan Izyani Adilah Wan-Mohamad
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Tax Avoidance ◽  
Free Cash Flow ◽  
Real Earnings Management ◽  
Corporate Tax

The Relation between Auditors' Fees for Nonaudit Services and Earnings Management

2002 ◽  
Vol 77 (s-1) ◽  
pp. 71-105 ◽  
Author(s):  
Richard M. Frankel ◽  
Marilyn F. Johnson ◽  
Karen K. Nelson
Keyword(s):  
Earnings Management ◽  
Audit Fees ◽  
Discretionary Accruals ◽  
Negative Association ◽  
Present Evidence ◽  
Negatively Associated ◽  
Management Indicators ◽  
Earnings Surprises ◽  
Using Data ◽  
Auditor Fees

This paper examines whether auditor fees are associated with earnings management and the market reaction to the disclosure of auditor fees. Using data collected from proxy statements, we present evidence that nonaudit fees are positively associated with small earnings surprises and the magnitude of discretionary accruals, while audit fees are negatively associated with these earnings management indicators. We also find evidence of a negative association between nonaudit fees and share values on the date the fees were disclosed, although the effect is small in economic terms.

scholarly journals Effect of Leverage on Real Earnings Management: Evidence from Korea

2020 ◽  
Vol 12 (6) ◽  
pp. 2232
Author(s):  
Ana Belen Tulcanaza-Prieto ◽  
Younghwan Lee ◽  
Jeong-Ho Koo
Keyword(s):  
Earnings Management ◽  
Stock Price ◽  
Positive Relationship ◽  
Financial Statements ◽  
Least Square ◽  
Real Earnings Management ◽  
Fiscal Year ◽  
Financial Firms ◽  
The Relationship

This study examines how leverage affects real earnings management (REM) in non-financial firms listed on the Korea Composite Stock Price Index from 2010 to 2018 by employing total, short-term, and long-term debt ratios (i.e., leverage) as independent variables and four REM metrics as dependent variables. We find a significant positive relationship between leverage and REM in suspicious firms, whereas the effect of leverage is insignificant in non-suspicious firms. We also find that the positive relationship between both variables is stronger in the second half of the fiscal year, which shows the prevalence of the seasonality of REM, as managers collect high-frequency financial information during this period. These findings are consistent with those in the literature that managers increase firm leverage and REM activities to reduce their probability of being discovered, since financial statements in the interim quarters are not often audited. Our study complements the literature by introducing quarterly data to identify clearly REM activities and detect the strongest effect on the relationship between REM and leverage. Moreover, our results from the two-stage least square (2SLS) regression analysis are consistent with our previous findings.

The Sarbanes-Oxley Act, Earnings Management, and Post-Buyback Performance of Open-Market Repurchasing Firms

2013 ◽  
Vol 48 (6) ◽  
pp. 1847-1876 ◽  
Author(s):  
Sheng-Syan Chen ◽  
Chia-Wei Huang
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Earnings Management ◽  
Audit Committee ◽  
Negative Association ◽  
Real Earnings Management ◽  
Open Market ◽  
Sarbanes Oxley ◽  
Repurchase Announcements ◽  
Management Audit

AbstractWe examine how the Sarbanes-Oxley Act (SOX) affects pre-repurchase earnings management and its association with post-repurchase firm performance. Unlike prior pre-SOX studies, our post-SOX results indicate that open-market repurchasers do not engage in pre-buyback downward accrual-based earnings management. Audit committee independence, reforms in corporate governance structures, and changes in executives’ equity holdings prompted by SOX may explain the findings. Post-SOX, the significant negative association between pre-repurchase abnormal accruals and post-repurchase performance disappears, the market reaction to repurchase announcements becomes significantly less favorable, and there is no evidence of any shift away from accrual-based to real earnings management.

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