scholarly journals The Effect of Good Corporate Governance, Free Cash Flow, and Tax Planning on Earnings Management

At-Taqaddum ◽  
2021 ◽  
Vol 13 (1) ◽  
pp. 1-20
Author(s):  
Ratno Agriyanto ◽  
Azizah Setiyawati ◽  
Dessy Noor Farida
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Cash Flow ◽  
Audit Committee ◽  
Negative Impact ◽  
Institutional Ownership ◽  
Tax Planning ◽  
Free Cash Flow ◽  
Assessment Tools ◽  
Good Corporate Governance

Earnings is one of the management assessment tools as a form of responsibility to investors, thus allowing opportunistic behavior to do earnings management. The study aims to determine the effect of good corporate governance, free cash flow, and tax planning on earnings management. In this study, the independent variables are the board of independent commissioners, institutional ownership, audit committee, free cash flow, and tax planning. The dependent variable is earnings management which is projected through discretionary accruals using the modified Jones model. Data collected in this study used the documentation method and library method. The object of this study is state-owned companies listed in the 2014-2018 period of the Indonesian Stock Exchange. The sampling technique used purposive sampling, and the analysis technique used multiple linear. This study shows that a partial board of independent commissioners, institutional ownership, audit committee, and tax planning do not significantly affect earnings management. In contrast, free cash flow has a significant negative impact on earnings management. Therefore, implementing good corporate governance, free cash flow, and tax planning which is not just to fulfill existing regulations, will increase performance and company value and trust of investors.

scholarly journals Determinan Manajemen Laba Perusahaan di Sektor Konsumsi

2019 ◽  
Vol 3 (2) ◽  
pp. 96
Author(s):  
Muhammad Fajri
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Cash Flow ◽  
Institutional Ownership ◽  
Free Cash Flow ◽  
Earning Management ◽  
Managerial Ownership ◽  
Leverage Ratio ◽  
Good Corporate Governance ◽  
The Impact

The aim of this research is to provide empirical evidence on the impact of good corporate governance, free cash flow, and leverage ratio on earnings management. Good corporate governance is measured by audit committee’s size, the proportion of independent commissioners, institutional ownership, and managerial ownership. Discretionary accrual is the proxy of earning management. This research used 28 consumer goods companies listed in Indonesia Stock Exchange from 2016 to 2018. Data were analyzed using panel data with random effect model. Based on the result of analysis concluded that all components of good corporate governance (audit committee’s size, the proportion of independent commissioners, institutional ownership, and managerial ownership), have no significant effect on earnings management, on other hand leverage ratio has a negative effect and no significant on earning management, and free cash flow has a positve and no significant effect on earnings management

scholarly journals THE EFFECT OF IMPLEMENTATION OF GOOD CORPORATE GOVERNANCE, COMPANY SIZE, AND FREE CASH FLOW ON EARNINGS MANAGEMENT

2020 ◽  
Vol 9 (2) ◽  
pp. 72
Author(s):  
Fina Fitriyana
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Board Of Directors ◽  
Cash Flow ◽  
Audit Committee ◽  
Stock Exchange ◽  
Free Cash Flow ◽  
Company Size ◽  
Good Corporate Governance ◽  
Food And Beverage

The aims of this study is to examine the effect of the good corporate governance, company size, and free cash flow on the earnings management for companies in food and beverage sector at Indonesia Stock Exchange in period of 2012 until 2016. This study conducts regression analysis in term of hypothesis testing. This study finds that board of directors and board of commissioners are significant on earnings management, while the commissioners and audit committee, firm size and free cash flow are insignificant.

scholarly journals DETERMINAN MANAJEMEN LABA: KAJIAN EMPIRIS PADA PERUSAHAAN MANUFAKTUR GO PUBLIK DI BURSA EFEK INDONESIA

2019 ◽  
Vol 4 (1) ◽  
pp. 25-42
Author(s):  
Eny Kusumawati
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Firm Size ◽  
Audit Committee ◽  
Audit Quality ◽  
Institutional Ownership ◽  
Tax Planning ◽  
Free Cash Flow ◽  
Regression Result ◽  
Managerial Ownership

This study aimed to analyze the effect of nonfinantial and finantial to earnings management companies are included in the manufacturing company listed on the Indonesia Stock Exchange for the period 2014 until 2016. The finantial included leverage, free cash flow, profitability, tax planning, firm size and nonfinantial included managerial ownership, institutional ownership, independent board of commissioner, audit committee, audit quality. Measuring the earnings management used a discreationary accrual model. There were 120 companies taken by purposive sampling. Data was analyzed using multiple linear regression. Result of the data analysis showed that managerial ownership, institutional ownership, independent board of commissioner, and tax planning had no significantly effect on the earnings management. The audit committee, leverage, free cash flow, profitability, audit quality and firm size had significantly effect on the earnings management.  Keywords: finantial, non finantial, earning management

scholarly journals Company Characteristics, Corporate Governance, Audit Quality Impact on Earnings Management

2019 ◽  
Vol 4 (2) ◽  
pp. 43-49
Author(s):  
Friska Firnanti ◽  
Kashan Pirzada ◽  
Budiman Budiman
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Cash Flow ◽  
Audit Committee ◽  
Audit Quality ◽  
Institutional Ownership ◽  
Free Cash Flow ◽  
Managerial Ownership ◽  
Sales Growth ◽  
Return On Assets

Objective – The purpose of this research is to empirically examine how company characteristics, corporate governance and audit quality affect earnings management. Methodology/Technique – The population used for this research is manufacturing companies listed on the Indonesian Stock Exchange between 2013 and 2015. The sampling method used in this research is purposive sampling. 64 companies are examined, with 192 items of data being obtained. Findings – This research also uses statistical testing through a multiple regression. The results show that return on assets, financial leverage, free cash flow, and sales growth all have an influence on earnings management. Meanwhile, other variables such as managerial ownership, institutional ownership, board size, the presence of an audit committee, firm size, and audit quality have no significant effect on earnings management. Novelty – In this research, company characteristics are proxied with the return on assets, financial leverage, firm size, free cash flow, and sales growth, while corporate governance is proxied with managerial ownership, institutional ownership, board size, and the presence of an audit committee. Type of Paper: Empirical. Keywords: Company Characteristics; Corporate Governance; Audit Quality; Earnings Management; Agency Theory. Reference to this paper should be made as follows: Firnanti, F.; Pirzada, K.; Budiman. 2019. Company Characteristics, Corporate Governance, Audit Quality Impact on Earnings Management, Acc. Fin. Review 4 (2): 43 – 49 https://doi.org/10.35609/afr.2019.4.2(2) JEL Classification: M40, M41, M49.

scholarly journals PENGARUH FREE CASH FLOW DAN LEVERAGE TERHADAP MANAJEMEN LABA DENGAN GOOD CORPORATE GOVERNANCE SEBAGAI VARIABEL MODERASI

AKUNTABILITAS ◽  
2019 ◽  
Vol 13 (1) ◽  
pp. 69-82
Author(s):  
Erma Setiawati ◽  
Mujiyati Mujiyati ◽  
Erma Marga Rosit
Keyword(s):  
Corporate Governance ◽  
Regression Analysis ◽  
Earnings Management ◽  
Cash Flow ◽  
Free Cash Flow ◽  
Leverage Effect ◽  
Purposive Sampling ◽  
Good Corporate Governance

This research aimed to examine the effect of free cash flow and leverage to earnings management.This study also examines the role of good corporate governance as measured by the index Government in moderating influence of free cash flow and leverage on earnings management. This research was conducted in the company are listed in the JakartaIslamicIndex(JII)from2015-2017 and unlisted in the Bursa Efek Indonesia(BEI).The sample is determined by purposive sampling with 45 samples. This analysis uses regression analysis moderation (MRA). The results of the research indicate where (1) free cash flow significant effect on earnings management, (2) no leverage effect on earnings management, (3) good corporate governance as measured by the index of corporate governance is not able to moderate the influence of free cash flow and earnings management

scholarly journals Analisis Struktur Kepemilikan dan Good Corporate Governance terhadap Manajemen Laba pada Perusahaan di Bursa Efek Idonesia

2021 ◽  
pp. 220-225
Author(s):  
Jova Yolanda ◽  
Dian Efriyenti
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Board Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Management Practice ◽  
Institutional Ownership ◽  
Audit Committees ◽  
Good Corporate Governance ◽  
The Board Of Directors

Earnings management practice is the decision to choose a particular accounting method that can achieve the goal of increasing reported profits or reducing investment losses. Misappropriation of financial statements by management can affect the amount of reported income. This study aims to determine whether ownership structure and good corporate governance have a significant influence on earnings management. The study was conducted on pharmaceutical sub-sector companies listed on the Indonesia Stock Exchange (IDX) in a row for the 2016-2020 period. The sample technique used is purposive sampling, so as many as 7 samples of companies are used. The data testing method uses multiple linear analysis. The results of the data test show that partially institutional ownership has a negative and significant effect on earnings management, independent commissioners, the audit committee, and the board of directors has a negative but not significant effect on earnings management. Simultaneously the results state that institutional ownership, independent commissioners, audit committees, and the board of directors have an effect but not significantly on earnings management.

scholarly journals PENGARUH CORPORATE GOVERNANCE DAN FAKTOR LAINNYA TERHADAP MANAJEMEN LABA

2018 ◽  
Vol 19 (2) ◽  
pp. 183-194
Author(s):  
YULIANI ALMALITA
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Cash Flow ◽  
Audit Committee ◽  
Audit Quality ◽  
Control Variable ◽  
Total Sample ◽  
Analysis Data ◽  
Free Cash Flow ◽  
Managerial Ownership

The objective (s) of this research was verifying whether good corporate governance (size of audit committee, proportion of independent commissioner, institutional, managerial ownership, size of commissioner) leverage, free cash flow, profitability, losses, audit quality and market to book on earnings management and company’s size as control variable. Data analyze used in this research is secondary data and using purposive sampling where total sample are 69 listed companies on manufacture sector for period 2012-2013. Analysis data method that used in this research is multiple regression method with using SPSS version 19.0. The result of the research concludes that leverage and market to book have influence to earnings management. Whereas size of audit committee, proportion of independent commissioner, institutional, managerial ownership, size of commissioner, free cash flow, profitability, losses,

scholarly journals PENGARUH FREE CASH FLOW DAN FINANCIAL LEVERAGE TERHADAP MANAJEMEN LABA DENGAN GOOD CORPORATE GOVERNANCE SEBAGAI VARIABEL MODERASI

SIMAK ◽  
2020 ◽  
Vol 18 (02) ◽  
pp. 118-134
Author(s):  
Jihana Safira Tualeka ◽  
Tenriwaru Tenriwaru ◽  
Ummu Kalsum
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Cash Flow ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Free Cash Flow ◽  
Financial Leverage ◽  
Purposive Sampling ◽  
Good Corporate Governance

This research aimed to examine whether free cash flow and financial leverage affected profit management and whether good corporate governance as a moderating variable moderated the effect of free cash flow and financial leverage on profit management on textile and garment companies listed on the Indonesia Stock Exchange in the period 2016-2018. This study used sample of 16 companies from the textile and garment listed on the Indonesia Stock Exchange for the period of 2016-2018, and used a purposive sampling technique. Based on the results of research conduct shows that free cash flow has a negative and significant effect on earnings management. Financial leverage has a negative and not significant effect on earnings management. Good corporate governance can moderate or strengthen the influence between free cash flow and profit management. And good corporate governance can moderate or strengthen the influence between financial leverage and profit management.

Corporate Governance, Earnings Management dan Kinerja Perbankan di Indonesia

2019 ◽  
Vol 16 (1) ◽  
pp. 68
Author(s):  
Made Ratih Baskaraningrum ◽  
Agus Fredy Maradona
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Management Practices ◽  
Banking Industry ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Audit Committees ◽  
Managerial Ownership ◽  
Good Corporate Governance

ABSTRACT            The purpose of this research is to investigate the concept of the importance of the role of good corporate governance in the banking industry in Indonesia. Specifically, this study intends to examine whether good corporate governance plays a role in improving company performance, especially by limiting earnings management practices. This study focuses on banking companies in Indonesia that are listed on the Indonesia Stock Exchange (IDX). Determination of company samples in this study was carried out by purposive sampling method, with the criteria of banking companies listed on the Indonesia Stock Exchange during the 2014-2016 period. The data collection method used in this study was the method of documentation study. The data analysis method used is Path Analysis.The results of the Square Multiple Correlation for earnings management amounted to 0.795 and banking performance was 0.860, so for earnings management variables influenced by managerial ownership, institutional ownership, the size of the independent board of commissioners, the audit committee amounted to 79.5%. While banking performance variables are influenced by managerial ownership, institutional ownership, board of commissioners size, the proportion of independent commissioners, audit committees and earnings management is 86%. Empirical benefits in research are about the application of corporate governance, earnings management and financial performance in the banking industry in Indonesia. The practical benefits in this study can provide benefits for companies in the application of appropriate corporate governance and benefits for investors who invest their capital in the company and can also be taken into consideration for companies to reduce profit management in the company so as to improve banking performance in Indonesia.

scholarly journals TATA KELOLA PERUSAHAAN, ALIRAN KAS BEBAS DAN MANAJEMEN LABA

2019 ◽  
Vol 21 (2) ◽  
pp. 205-214
Author(s):  
ARYA PRADIPTA
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Firm Size ◽  
Audit Committee ◽  
Stock Exchange ◽  
Selection Procedure ◽  
Institutional Ownership ◽  
Free Cash Flow ◽  
Managerial Ownership ◽  
Samples Selection

The purpose of this study is to examine the factors that influence earnings management in Indonesia. Those factors are profitability, leverage, firm size, audit committee, independent commissioner proportion, institutional ownership, managerial ownership and free cash flow. The population are non financial companies listed in Indonesia stock exchange. This study used 283 samples and samples selection procedure used purposive sampling. This research uses multiple regression analysis method. The result of this study shows that profitability and free cash flow have influence to earnings management. While, leverage, firm size, audit committee, independent commissioner proportion, institutional ownership and managerial ownership do not have influence to earnings management.

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