scholarly journals Earnings management determinants: A study of Egyptian listed firm characteristics post the Egyptian revolution

2021 ◽  
Vol 5 (2, special issue) ◽  
pp. 165-166
Author(s):  
Engy ElHawary ◽  
Dina Hassouna
Keyword(s):  
Earnings Management ◽  
Management Practices ◽  
Audit Quality ◽  
Stock Exchange ◽  
Management Practice ◽  
Earning Management ◽  
Firm Characteristics ◽  
Financial Leverage ◽  
Egyptian Revolution ◽  
The Relationship

This research aims to look at how firm characteristics and audit quality can affect the earning management practices in the Egyptian context, within the period of 2011–2019. This period was after the Egyptian revolution and has not been well investigated in Egypt, especially after the new release of corporate governance rules for listing firms. A sample of 157 non-financial listed companies in the Egyptian stock exchange is selected for achieving the research objective through analysing their financial reports. The panel least squares, using the fixed-effect model, is used to test the hypotheses and investigate the relationship between discretional accruals and firm characteristics, where the dependent variable is the earnings management, measured by the discretionary accruals and the independent variables are the firm characteristics (size, financial leverage, age, survival and audit quality). The results illustrate that the relationship between a firm’s financial leverage and earnings management is positive. This study may help the firms to control their financial leverage for avoiding any earnings management practice. The stakeholders should notice such significant firm characteristics in making their own decisions, especially after the COVID-19 pandemic crisis, which may expectedly increase the firm financial leverage, and in turn, some earning management practices can be used intentionally to hide the bad firm performance

scholarly journals THE ROLE OF CORPORATE GOVERNANCE IN CONSTRAINING EARNING MANAGEMENT

2020 ◽  
Vol 1 (2) ◽  
pp. 156-168
Author(s):  
Dwi Jaya Kirana ◽  
Ekawati Jati Wibawaningsih ◽  
Aniek Wijayanti
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Significant Influence ◽  
Management Practices ◽  
Audit Quality ◽  
Stock Exchange ◽  
Earning Management ◽  
Corporate Governance Mechanisms ◽  
Effective Role ◽  
The Government

This study examines whether corporate governance measured by audit quality, ownership structure, and board of commissioners quality has an effective role in constraining earnings management in Indonesia. The sample of this research is 163 companies in non-financial sectors listed on the Indonesia Stock Exchange in the period 2014-2018. Regression analysis is used to test the research hypothesis. Discretional accruals were used to measure earning management. The results show that the audit firm’s reputation as a proxy of audit quality has a negative significant influence (at the 5% level) on earning management practices. Contrary to the hypothesis, we found that the size of the board of commissioners has a positive significant influence (at the 5% level) on earnings management. These findings provide practical advice for the government and shareholders in providing effective corporate governance mechanisms in constraining earnings management.

scholarly journals PENGARUH REAL EARNING MANAGEMENT TERHADAP ARUS KAS OPERASI PERUSAHAAN DENGAN KUALITAS AUDIT SEBAGAI VARIABEL MODERASI (Studi pada Perusahaan Manufaktur yang Terdaftar di BEI)

MODUS ◽  
2016 ◽  
Vol 27 (1) ◽  
pp. 65 ◽  
Author(s):  
Felicianus Adi Nugroho ◽  
Dewi Ratnaningsih
Keyword(s):  
Earnings Management ◽  
Audit Quality ◽  
Stock Exchange ◽  
Predictive Ability ◽  
Real Earnings Management ◽  
Earning Management ◽  
Manufacturing Companies ◽  
Management Actions ◽  
The Relationship

This study aims to determine the efect of real earnings management which is a proxy of earnings management to the predictive ability of fnancial reports through the company’s operating cash fow. Researchers also consider the infuence exerted by the quality of audits of the relationship between real earnings management with the company’s operating cash fow. Samples are manufacturing companies listed in Indonesia Stock Exchange during the period of observation 2010-2012.Berdasarkan criteria previously set contained 249 corporate data used in this study. The results of this study revealed that real earnings management has an infuence on the predictive ability of fnancial statements through operating cash fow. Quality audits can also afect earnings management actions undertaken by the company and consequently also of the operating cash fow of the company. Overall audit quality may afect the actions of earnings management and certainly also the predictive ability of corporate fnancial statements.Keywords: real earnings management, operating cash fow, and audit quality.

HUBUNGAN BOARD DAN KOMITE AUDIT TERHADAP MANAJEMEN LABA

2010 ◽  
Author(s):  
Fivi Anggraini
Keyword(s):  
Corporate Governance ◽  
Moral Hazard ◽  
Earnings Management ◽  
Conflict Of Interest ◽  
Significant Relationship ◽  
Stock Exchange ◽  
Earning Management ◽  
Independent Directors ◽  
Relationship Of ◽  
The Relationship

Earnings management is the moral hazard problem of manager that adses because of the conflict of interest between the manager as agent and the stakeholder and the owner as principal. The behavior of earnings management will immediately influence the reported earning. The aims of this research at examining the relationship of board and audit committe to earnings management. The samples of this research is all of companies member Corporate Governance Perception Index (CGPI) in the years of 2003-2006 which were listed in Jakarta Stock Exchange. The results of this study show that (1) the proportion of independent directors on the board had not significant relationship to earning management, (2) competence of independent directors on the board had not significant relationship to earning management, (3) the size of board had significant relationship to earning management, (4) the proportion of independent directors on the audit committe had not significant relationship to earning management, and (5) competence of members of the audit committe had significant relationship to earning management.

scholarly journals IFRS ADOPTION AND EARNINGS MANAGEMENT PRACTICE: EVIDENCE FROM INDONESIA COMPANIES

2019 ◽  
Vol 7 (2) ◽  
pp. 229-239
Author(s):  
Vina Kholisa Dinuka
Keyword(s):  
Earnings Management ◽  
Management Practices ◽  
Stock Exchange ◽  
Management Practice ◽  
Real Earnings Management ◽  
Manufacturing Companies ◽  
Discretionary Accrual ◽  
Ifrs Adoption ◽  
Negative Effect ◽  
Ifrs Implementation

The purpose of this study is to verify IFRS contribution by examining the presence of Accrual Earnings Management (AEM) and Real Earnings Management (REM) in the period pre- and post- IFRS implementation in manufacturing companies in Indonesia. AEM is measured by absolute value of discretionary accrual, while REM is proxied by three measurements of REM, they are abnormal cash flow operation, abnormal production and abnormal discretionary expenses. The sample is taken from Indonesia stock exchange in 2009-2011 and 2013-2015. 2012 is Indonesia adoption period and it is excluded from the sample, because it is considerated as transitory year. This study uses regression analysis and Paired t-test to compare the presence of AEM and REM preceding and following IFRS implementation. The findings reveal that IFRS adoption has significantly negative effect towards AEM and REM. It indicates that the following IFRS implementation, AEM and REM are decrease. Therefore, IFRS is able to reduce earnings management practices in manufacturing companies in Indonesia both for AEM and REM.

scholarly journals Related Party Transactions, Family Ownership, and Earnings Management in Indonesia

2021 ◽  
Vol 25 (3) ◽  
pp. 688-700
Author(s):  
Levina Ulfa Subastian ◽  
Ari Kuncara Widagdo ◽  
Doddy Setiawan
Keyword(s):  
Earnings Management ◽  
Stock Exchange ◽  
Management Practice ◽  
Control Variable ◽  
Family Ownership ◽  
Related Party Transactions ◽  
Discretionary Accrual ◽  
Corporate Earnings ◽  
The Relationship ◽  
Public Accountant

The purpose of earnings management practice is to reach the profit goals the company wants to achieve. Therefore, this study aims to determine the relationship between related party transactions and earnings management in Indonesia by balanced panel data from consumer goods companies listed on the Indonesia Stock Exchange (IDX) from 2017 to 2019. The number of samples used in this study was 102 firm-year observations. The results showed that related party transactions positively and significantly improved corporate earnings management, with discretionary accrual as a proxy. The presence of family ownership strengthens the relationship between related party transactions and earnings management. Also, it shows that the control variable: public accountant from BIG4, company size, company losses, and ROA affect accrual earnings management. The leverage does not affect accrual earnings management. The study result indicates that family business ownership encourages an entrenchment effect that is detrimental to the company. It is carried out through related party transactions then manipulated by using accrual earnings management practices.DOI: 10.26905/jkdp.v25i3.5778

MEKANISME GOOD CORPORATE GOVERNANCE, UKURAN PERUSAHAAN, STRUKTUR KEPEMILIKAN MANAJERIAL DAN LEVERAGE PADA MANAJEMEN LABA PADA EMITEN PERBANKAN DI BURSA EFEK INDONESIA

2015 ◽  
Vol 10 (1) ◽  
pp. 1
Author(s):  
Rowland Pasaribu ◽  
Dionysia Kowanda ◽  
Muhammad Firdaus
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Firm Size ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Earning Management ◽  
Managerial Ownership ◽  
Good Corporate Governance

ABSTRACT This reseach amied at knowing the influence of audit quality, propotion of independent commissioner, audit committe, firm size, managerial ownership and leverage. It used purposive sampling technique or choosing samples based on certain criteria. The sample of this research was 25 companies of banking industry in indonesia stock exchange period 2008-2012. Descriptive analysis, classical test, as well as multiple linear regression by examining the hypothesis using SPSS 20.0 were used to analyzed the data. The result shows that (1) all independent variables simultaneously hasinfluence on earnings management; (2) however partially audit committee, audit quality, managerial ownership and leverage do not affect significantly to earnings management; (3) only firm size and independent commissioner that affect significantly to earning management. Keywords: Earning Management, Good Corporate Governance, Firm Size, BankingABSTRAK Penelitian ini bertujuan untuk menganalisis dan menguji secara empiris signifikansi parsial dan simultan dari kualitas audit, komisaris independensi audit, komite audit, ukuran perusahaan, struktur kepemilikan, dan leverage terhadap manajemen laba pada emiten perbankan di bursa efek Indonesia periode 2008-2012. Teknik analisis yang digunakan adalah multiregresi. Hasil studi menunjukkan bahwa secara simultan seluruh variabel independen berpengaruh signifikan sedangkan secara parsial hanya ukuran perusahaan dan komisi independensi audit yang berpengaruh signifikan terhadap manajemen laba. Kata Kunci: Manajemen Laba, Mekanisme Tata Kelola, Ukuran Perusahaan, Perbankan,

The moderating role of audit quality on the relationship between auditor reporting and earnings management: empirical evidence from Tunisia

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fakhfakh Imen ◽  
Jarboui Anis
Keyword(s):  
Earnings Management ◽  
Audit Quality ◽  
Stock Exchange ◽  
Generalized Least Squares ◽  
Content Type ◽  
Audit Opinion ◽  
Before And After ◽  
Audit Opinions ◽  
Auditor Reporting ◽  
The Relationship

PurposeThe purpose of this study is to examine the interrelationship between modified audit opinions and earnings management as measured by discretionary accruals and develop a thorough understanding regarding the moderating effect of audit quality on this relation.Design/methodology/approachThis study uses a sample of Tunisian listed firms on the Tunis Stock Exchange during 2006–2013. Four models are developed and tested by using panel logistic and Feasible Generalized Least Squares (FGLS) regressions.FindingsThe results show that earnings management increases the likelihood of receiving a modified audit opinions. Then firms receiving modified audit opinions manage earnings more than those receiving clean opinions. It is also discovered that audit quality moderates the relationship between audit opinion and earnings management.Practical implicationsThis paper contributes to the literature of both audit and management studies and represents the first effort to examine the relation between audit opinion and earnings management, with audit quality as a moderating variable.Originality/valueThis study extends existing research on earnings management and audit opinion. Thus, this study has the potential to help stakeholders, board of directors, regulators and auditors, who are related with enhancing the supervision of firms and reducing the opportunities given to managers, to engage in earnings management. It constitutes an addition to previous knowledge about audit opinion in the Tunisian context before and after revolution.

The extent of voluntary corporate disclosure in the Egyptian Stock Exchange

2017 ◽  
Vol 7 (2) ◽  
pp. 266-291 ◽  
Author(s):  
Hany Kamel ◽  
Emad Awadallah
Keyword(s):  
Earnings Management ◽  
Voluntary Disclosure ◽  
Management Practices ◽  
Developing Economies ◽  
Stock Exchange ◽  
Related Factor ◽  
Corporate Disclosure ◽  
Content Type ◽  
The Relationship ◽  
Egyptian Stock Exchange

Purpose The purpose of this paper is to investigate the current level of voluntary corporate disclosure in the Egyptian Stock Exchange. In addition, it explores the factors influencing the extensiveness of voluntary disclosure and examines the potential consequences of such disclosure in regards to the phenomenon of earnings management. Design/methodology/approach A relevant disclosure index to the Egyptian context was adopted to assess the level of voluntary disclosure in the 2010 annual reports of the most actively traded companies listed on the Egyptian Stock Exchange. The relationship between the extent of voluntary disclosure and each specific-related factor was examined using unranked and ranked OLS regression models. Meanwhile, a system of simultaneous equations was performed using a two-stage least squares regression model in order to investigate whether companies with higher levels of voluntary disclosure exhibit lower levels of earnings management practices. Findings The results indicate that the level of voluntary disclosure is positively responsive to specific corporate attributes, namely, the type of auditing firm and the two industries of Healthcare and Pharmaceuticals, and Chemicals. However, no significant indications were found that firm size, leverage, profitability and liquidity are important determinants of corporate disclosure. Also, the results show no evidence to support the prior anticipation that a higher level of voluntary disclosure reduces the ability of managers to make use of earnings management. On the contrary, it was found that leverage and the tendency of firms to avoid reporting declines in earnings are the main drivers of the phenomenon of earnings management in Egypt. Practical implications This paper has important implications for both domestic and overseas investors in Egypt as well as the regulatory authorities in the developing economies. Originality/value The main contribution of this paper is its focus on the extent of voluntary disclosure in a developing country such as Egypt, which has a high potential for economic growth in the near future. Besides, this paper is the first to examine the relationship between the level of voluntary disclosure and the phenomenon of earnings management in the Egyptian context.

scholarly journals The Effect of Good Corporate Governance (GCG) Mechanism on Earnings Management Practices of The Stubben Model (Study Case on Mining Sector Companies Listed on The Indonesia Stock Exchange 2014-2019)

2020 ◽  
Vol 5 (6) ◽  
Author(s):  
Muhammad Fairus ◽  
Pardomuan Sihombing
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Management Practices ◽  
Audit Quality ◽  
Stock Exchange ◽  
Sample Selection ◽  
Process Data ◽  
Mining Sector ◽  
Good Corporate Governance ◽  
The Impact

This study was prepared with the intention of analyzing the impact of the Good Corporate Governance (GCG) Mechanism on the Stubben Model of Profit Management (analysis of Mining Sector Companies on the Indonesia Stock Exchange for the period 2014-2019). The population used in the study is the mining sector companies on the IDX. The sample selection method used purposive sampling technique. To process data after sample selection, compile a research model, determine the variables analyzed in the study, and propose a hypothesis, the next step is to carry out data processing procedures through regression analysis with panel data. The results of the analysis conclude that (1) Institutional Ownership has a negative and significant impact on Earnings Management, (2) Managerial Ownership has a negative and significant impact on Earnings Management, (3) The Independent Board of Commissioners has a negative and significant impact on Earnings Management, (4) The Audit Committee has a negative and significant impact on Earnings Management, and (5) Audit Quality has a negative and significant impact on Earnings Management.

scholarly journals Pengaruh Kualitas Audit, Ukuran Perusahaan Dan Leverage Terhadap Manajemen Laba Pada Perusahaan Perbankan Yang Tercatat Di Bursa Efek Indonesia Tahun 2016-2018

2020 ◽  
Vol 1 (01) ◽  
pp. 56
Author(s):  
Rodhiya Maulidah ◽  
Rahmat Agus Santoso
Keyword(s):  
Linear Regression ◽  
Earnings Management ◽  
Multiple Linear Regression ◽  
Firm Size ◽  
Management Practices ◽  
Audit Quality ◽  
Stock Exchange ◽  
Financial Statements ◽  
Company Size ◽  
Earnings Information

The existence of earnings information that is needed in the financial statements can be targeted by parties who are not responsible for carrying out earnings management practices. There are several factors that can present earnings management practices, namely audit quality, company size and leverage. This study discusses the evaluation of quality, company size and leverage on earnings management in banking companies listed on the Indonesia Stock Exchange in 2016-2018. By using 117 samples of annual financial statements or financial statements of companies listed on the Indonesia Stock Exchange. Tests carried out using multiple linear regression. Regression results indicate the results of quality audits and firm size significantly influence earnings management. Meanwhile, leverage is not significant to earnings management. It is expected that the results of this study can add insight for users of financial statements to pay attention to audit quality and company size to avoid earnings management practices.

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