PRAKTIK EARNING MANAGEMENT DAN PENGARUHNYA TERHADAP KOMPENSASI BONUS

The purpose of this study is to identify earning management practices and analyze the effect of earnings management on bonus compensation. The object of research uses the Business Entity and Sharia Business Unit. The selected sample is 34 companies. Variables used are earnings management and bonus compensation. Data is collected through documentation in the form of financial statements of Business Entities and Sharia Business Units in 2017 and 2018. This study uses a hypothesis test. The test method used is panel data test using EViews 10 software. The results showed that the practice of earning management in Sharia Business Entities and Business Units is mostly done by income maximalization or increasing profit (50%) and income minimizasion or decreasing profit (50%), and there is a significant influence between earning management practices and bonus compensation.

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When Does Earnings Management Matter? Evidence across the Corporate Life Cycle for Non-Financial Chinese Listed Companies

Journal of Risk and Financial Management ◽

10.3390/jrfm13120313 ◽

2020 ◽

Vol 13 (12) ◽

pp. 313 ◽

Cited By ~ 1

Author(s):

Ammar Hussain ◽

Minhas Akbar ◽

Muhammad Kaleem Khan ◽

Ahsan Akbar ◽

Mirela Panait ◽

...

Keyword(s):

Life Cycle ◽

Panel Data ◽

Earnings Management ◽

Fixed Effects ◽

Management Practices ◽

Real Earnings Management ◽

Earning Management ◽

Bankruptcy Risk ◽

Corporate Managers ◽

Corporate Life Cycle

Information availability, firm performance, idiosyncratic volatility and bankruptcy-risk vary across the Corporate Life Cycle (CLC) stages. The purpose of this paper is to examine whether CLC stages explain firm’s propensity to engage in both accrual base and real earning management practices in the context of China. Panel data of 3250 non-financial Chinese listed firms spanning from 2009 to 2018 is used to investigate the proposed relationship. CLC stages were captured through Dickinson’s model, while earnings management is measured by employing both techniques, i.e., accruals-base earnings management and real earnings management. The data were analyzed through Panel data fixed-effects and random-effects techniques. Results reveal that, when compared to shakeout phase, managers’ response to use both earnings management practices is significantly higher during introduction and decline phases, and lower during growth and mature stages of CLC. It suggests that introductory and later-staged firms distort their factual financial information from creditors to obtain loans without strict debt covenants. Our results are robust to alternate measures and specifications. The core contribution of this research is to add a fresh perspective to the CLC research by uncovering its imperative role in influencing the earning management behavior of corporate managers.

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Financial Distress, Earnings Benchmark and Earnings Management Practices

Vision The Journal of Business Perspective ◽

10.1177/09722629211010978 ◽

2021 ◽

pp. 097226292110109

Author(s):

Karan Gandhi

Keyword(s):

Panel Data ◽

Earnings Management ◽

Financial Distress ◽

Management Practices ◽

Real Earnings Management ◽

Public Companies ◽

Large Panel ◽

Distressed Firms ◽

Contradictory Evidence ◽

Financially Distressed

Prior research exhibits contradictory evidence on earnings management practices, both accrual and real, undertaken by the firms in state of financial distress. This study uniquely examines the issue in the presence of earnings-increasing earnings management motivation- meeting earnings benchmark of avoiding losses. For examining the issue, this study analyzes large panel data of Indian public companies for the period 2000–2016. The findings indicate prevalence of earnings-decreasing real earnings management practices, that is, decrease in overproduction and increase in spending on discretionary expenses, in financially distressed firms despite there being motivation to increase earnings to avoid losses. No evidence of accrual earnings management practices has been observed in such firms.

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Earnings management and income tax evidence from Greece

Corporate Ownership and Control ◽

10.22495/cocv12i2c5p1 ◽

2015 ◽

Vol 12 (2) ◽

pp. 511-529 ◽

Cited By ~ 1

Author(s):

Eftychia Kapoutsou ◽

Christos Tzovas ◽

Constantinos Chalevas

Keyword(s):

Earnings Management ◽

Significant Relationship ◽

Income Tax ◽

Management Practices ◽

Management Accounting ◽

Discretionary Accruals ◽

Earning Management ◽

Total Current ◽

Jones Model ◽

Deferred Tax

The aim of this study is to examine the question of earnings management and, specifically, how this relates to taxation. In order to determine whether there is a correlation between earnings management and taxation, we investigate the discretionary accruals aspect of total accruals, i.e. the portion of profits which can be affected by management accounting choices, as calculated by the Jones (1991) model and the modified Jones model (Dechow et. al, 1995). Furthermore, we examine to what degree a correlation may exist between discretionary accruals and tax income (consisting of current and deferred tax). Our empirical findings demonstrate a statistically significant relationship between the levels of discretionary accruals and of total, current and deferred tax. This suggests that tax in general may be employed as a means to facilitate earnings management. The findings of this study suggest that IFRS provisions regarding taxation provide firms with a scope to get involved in earning management practices

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Proposing a model for limiting earning management practices: The case of Jordanian listed firms

Corporate Board role duties and composition ◽

10.22495/cbv12i3art9 ◽

2016 ◽

Vol 12 (3) ◽

pp. 81-84 ◽

Cited By ~ 1

Author(s):

Dea’a Al-Deen Omar Al-Sraheen ◽

Khalid Alkhatib

Keyword(s):

Earnings Management ◽

Management Practices ◽

Political Influence ◽

Earning Management ◽

Political Connections ◽

Ceo Duality ◽

Listed Firms ◽

Independent Variables ◽

The Board Of Directors ◽

Do So

The key objective of this paper is to propose a model for limiting earning management practices among manufacturing firms in Jordan. In order to do so, two independent variables are examined in this paper, namely, political influence and CEO Duality. Discretionary total accruals according to the modified Jones model (1991) was used in order to estimate the level of earnings management, which is the dependent variable. The sample comprised 64 companies for the financial year 2013. The results suggest that a positive and significant association existed among both political influence and CEO duality and earning management. This means that both independent variables exacerbated earnings management. Further research is required to determine what urgent legislation should be developed to restrict the presence of members who have political connections on the board of directors. Also, the need exists for the separation of roles of Chairman and CEO to ensure the independence and complying with the requirements of corporate governance.

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Motive behind Earnings Management Practices: Case in Public Property and Real Estate Companies in Indonesia

AKRUAL Jurnal Akuntansi ◽

10.26740/jaj.v12n1.p49-64 ◽

2020 ◽

Vol 12 (1) ◽

pp. 49

Author(s):

Alwan Sri Kustono

Keyword(s):

Real Estate ◽

Earnings Management ◽

Hypothesis Testing ◽

Management Practices ◽

Financial Statements ◽

Public Companies ◽

Public Property ◽

Real Estate Sector ◽

Testing Data ◽

Stage Analysis

This study examines the antecedents and consequence variables of earnings management. This study is expected to explain the motive of earnings management practices by public property and real estate companies in Indonesia: opportunistic or efficient. The theory which is the basis for developing the hypotheses ise agency, positive accounting, and signaling theories simultaneously. This study is explanatory research which aims to explain the causal relationship between variables through hypothesis testing. Data of this research are financial statements of public companies in the property and real estate sector in Indonesia (2014-2018) with some criteria. There are 60 firm-years data used in the analysis. Hypothesis testing uses multiple linear regression two-stage. The first stage analysis is used to examine the effect of the antecedent earnings management variable. Regression second stage test the consequences of earnings management practices. The results show debt and independent commissioners affect earnings management. Management performs more dominant earnings management because of opportunistic interests than to maintain market value and the interests of its shareholders. The implication of this research is to provide a comprehensive discourse on the motives for earnings management behavior in Indonesia.

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

Business and Economic Research ◽

10.5296/ber.v9i3.15011 ◽

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.

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MOTIVASI DAN STRATEGI MANAJEMEN LABA PADA ORGANISASI

Jurnal Ilmiah Akuntansi dan Keuangan ◽

10.32639/jiak.v8i2.298 ◽

2019 ◽

Vol 8 (2) ◽

pp. 68-80

Author(s):

Ika Neni Kristanti

Keyword(s):

Earnings Management ◽

Financial Reporting ◽

Financial Statements ◽

Ceo Turnover ◽

Motivational Factors ◽

Earning Management ◽

Political Motivation ◽

Jones Model ◽

A Company

Earnings management occurs when managers use valuations in financial reporting and in compiling transactions to change financial statements so as to mislead some stakeholders regarding the underlying results that depend on reported accounting figures or to influence contract outcomes that depend on reported accounting figures. The existence of earnings management in a company is inseparable from the various types or underlying motivational factors, while some of the motivations associated with the implementation of earnings management are bonus motivation, political motivation, tax motivation, CEO turnover motivation, IPO motivation. The models used in measuring earnings management include: Healy Model, DeAngelo Model, Jones Model, Industrial Model, Jones Modification Model, Dechow-Dichev Model, Kothari Model and Stubben Model. Keywords : earning management, motivation, measuring models

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Public Accountants’ Perceptions Of The Acceptability Of Earnings Management Practices Through The Employment Of GAAP In The Post-Sox Period

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v26i1.277 ◽

2010 ◽

Vol 26 (1) ◽

Cited By ~ 1

Author(s):

John E. McEnroe

Keyword(s):

Earnings Management ◽

Management Practices ◽

Financial Statements ◽

Securities And Exchange Commission ◽

Font Size ◽

Generally Accepted Accounting Principles ◽

Sarbanes Oxley ◽

Accounting Scandals ◽

Audit Opinions ◽

Certification Requirements

Over fifteen years ago, Martens and McEnroe (1992) conducted a behavioral study involving earnings management through the use of Generally Accepted Accounting Principles (GAAP). Their findings indicated that auditors issued unqualified audit opinions on those financial statements and perceived little risk to litigation as a result. A decade later they conducted a similar study (Martens and McEnroe 2002) with the expectation that increased attention to earnings management by then chairman of the Securities and Exchange Commission (SEC), Arthur Levitt, would reduce auditors’ perceptions that the letter of GAAP is in itself an aegis or “safe harbor” against litigation. Although the authors found that auditors had become more conservative, they still issued unqualified opinions on financial statements in which transactions were reported in their form rather than their substance. Given the accounting scandals of Enron and WorldCom, among others, and the enactment of the Sarbanes-Oxley Act (SOX) in 2002, especially with its officers’ certification requirements, it was posited that auditors would exhibit a much more conservative approach than in either of the two previous studies. The results indicate that although auditors are more conservative than in the 1992 study, they still allow clients to engage in earnings management practices through the use of GAAP by issuing unqualified audit opinions on their financial statements.

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The Effect Of Non-Performing Financing (NPF) On Earnings Management Practices In Islamic And Conventional Bank

JURNAL EKONOMI DAN PERBANKAN SYARIAH ◽

10.46899/jeps.v7i1.97 ◽

2019 ◽

Vol 7 (1) ◽

Author(s):

Erika Eriyanti ◽

Rianti Pratiwi ◽

Muhammad Doddy

Keyword(s):

Business Ethics ◽

Earnings Management ◽

Management Practices ◽

Financial Statements ◽

Financial Reports ◽

Islamic Bank ◽

Panel Data Regression ◽

Management Procedures ◽

Islamic Business Ethics ◽

Conventional Bank

This study aims to examine the effect of Non-Performing Financing (NPF) to Earnings Management Practices in Islamic Bank and Conventional Bank. Earnings management procedures are still regarded legal when they do not conflict with General Accepted Accounting Principles (GAAP), but when viewed from an Islamic perspective, particularly in Islamic business ethics and sharia management, earnings management practices are regarded to be incompatible with the principles contained in Islamic business ethics and sharia management.The data collection of this research uses documentation technique from financial reports of Islamic bank and conventional bank. The analytical method which is used in this study is panel data regression. This study found that the Non-Performing Financing (NPF) have a significant positive effect with Earnings Management. For the implication, investors and other financial statements customers are anticipated to be more cautious in evaluating financial statements. For business institutions, especially sharia business institutions, the principles of Islamic business ethics should always be instilled in carrying out their operations.

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PERSEPSI MAHASISWA PADA EARNING MANAGEMENT “STUDI KASUS MAHASISWA SEMESTER TUJUH UNIVERSITAS SURABAYA, TAHUN 2017”

Akuntansi dan Teknologi Informasi ◽

10.24123/jati.v12i2.2274 ◽

2019 ◽

Vol 12 (2) ◽

Author(s):

Jenifer . ◽

Yenny Sugiarti

Keyword(s):

Focus Group ◽

Earnings Management ◽

Student Perceptions ◽

Focus Group Discussion ◽

Management Practices ◽

Group Discussion ◽

Descriptive Statistics ◽

Real Earnings Management ◽

Earning Management ◽

Questionnaire Data

This study aims to determine students' perceptions of earningss management practices including student’s perception about real earnings management, student’s perception regarding accrual earnings management. In addition, this study also observe whether or not student perceive difference between real earnings management and accrual earnings management. This study used questionnaires and then the data obtained will be processed using descriptive statistics of mean and mode. The results of questionnaire data that have been processed will be deepened with Focus Group Discussion (FGD). The results of this study indicate that there is no difference in student perceptions for real earnings management practices and accrual earnings management.

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