scholarly journals EARNINGS MANAGEMENT PADA TITIK KRITIS PERUBAHAN TAHAP LIFE CYCLE: STUDI EMPIRIS PADA PERUSAHAAN MANUFAKTUR DI INDONESIA

2019 ◽  
Vol 24 (1) ◽  
pp. 50-62
Author(s):  
Baharudin Ludfi Syuhada ◽  
Susi Sarumpaet
Keyword(s):  
Earnings Management ◽  
Stock Exchange ◽  
Discretionary Accruals ◽  
Life Cycles ◽  
Manufacturing Firms ◽  
Earning Management ◽  
Life Stages ◽  
Management Behaviour ◽  
Reported Earnings ◽  
A Company

Corporations pass every stage of their life cycles through different ways. At each point of these stages a company has the possibility to turn into decline. When this occurs, a company has the incentive to manage earnings in order to maintain its performance reflected in reported earnings. The objective of this study is to examine whether earnings management choices are different in corporate life cycles from growth to mature and mature to stagnant. The differences in earning management behaviour were indicated by negative and positive discretionary accruals. The sample was taken from manufacturing firms listed on the Indonesia Stock Exchange (2006 to 2013) in different life stages. The results show that firms in growth-mature and mature-stagnant did manage earnings through discretionary accruals, as indicated by significant differences as compared to those in other corporate life cycles.

scholarly journals Impact of Improved Corporate Governance and Regulations on Earnings Management Practices—Analysis of 7 Industries from the Indian National Stock Exchange

2021 ◽  
Vol 14 (10) ◽  
pp. 454
Author(s):  
Jose Joy Thoppan ◽  
Robert Jeyakumar Nathan ◽  
Vijay Victor
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Management Practices ◽  
Positive Impact ◽  
Stock Exchange ◽  
Accounting Standards ◽  
Discretionary Accruals ◽  
Manufacturing Firms ◽  
Listed Firms ◽  
The Impact

This study investigates discretionary earnings management practices, tracing the changes over the years in selected top performing and highly liquid listed Indian firms. It empirically measures the impact of corporate governance, financial legislation and global reporting standards on the firms’ earnings management practices. The study analyses a sample of 712 firm-year data comprising 89 listed Indian companies across 7 different sectoral indices of the National Stock Exchange of India (NSE) over 8 years (2011–2018). The Modified Jones model was used to compute Discretionary Accruals to measure Earnings Management based on data obtained using Bloomberg terminals. Statistical results and plots generated in Stata offer evidence that instances of earnings management have significantly reduced after the enactment of the Companies Act 2013 and the adoption of Indian Accounting standards which are converged with the IFRS. Findings suggest that services firms are engaging in relatively higher levels of earnings management compared to manufacturing firms. This study reveals the positive impact of improved corporate governance, regulation, and enforcement by significantly reducing the levels of earnings management among listed firms in India.

scholarly journals PERILAKU EARNINGS MANAGEMENT DI SEKITAR PERUBAHAN TARIF PAJAK TAHUN 2008

2016 ◽  
Vol 1 (1) ◽  
Author(s):  
Suyanto Suyanto
Keyword(s):  
Earnings Management ◽  
Income Tax ◽  
Stock Exchange ◽  
Discretionary Accruals ◽  
Earning Management ◽  
Fiscal Year ◽  
Tax Rates ◽  
Tax Rate ◽  
Before And After ◽  
Tax Changes

This study aims to test the level of earning management before and after the income tax rate reduction for 2008 fiscal year. The samples were 21 banking companies listed in Indonesia Stock Exchange, which has provides loans to SMEs. The analysis using paired samplest-test to test these differences of earning management before and after the income tax rates changes. The results showed that earning management in the high tax rate was higher than in the lower tax rate. This shows that management has responded the income tax rates changes to take the opportunity. Keywords: discretionary accruals, earnings management, corporate income tax changes.

scholarly journals Analisis Pengaruh Manajemen Laba Terhadap Nilai Perusahaan dengan Good Corporate Governance Sebagai Variabel Moderasi (Studi Kasus Pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2015-2017)

2019 ◽  
Vol 3 (6) ◽  
pp. 01
Author(s):  
Theresia Shirley Tanadi Dan Indra Widjaja
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Stock Exchange ◽  
Discretionary Accruals ◽  
Manufacturing Firms ◽  
Analysis Method ◽  
Book Value ◽  
Basic Industry ◽  
Good Corporate Governance

The main objective of this research is to collect the empirical evidence of the influence of earnings management to the Firms’ value, with good corporate governance as the moderating variable, for Manufacturing Firms that are registered to the Indonesian Stock Exchange as of 2015 – 2017. Manufacturing Firms as the research subject, with Consumer Goods Industry and Basic Industry & Chemical sector. The research variables are (1) profit management, with proxy discretionary accruals modified jones; (2) Firm’s value, with proxy price to book value; and (3) good corporate governance, with proxy independent commissioner proportion and audit committee. This research used simple and moderated regression analysis method. The result indicates that earnings management has an impact on the Firms’ value and audit committee moderates the influence of earnings management to Firms’ value, whereas independent commissioner does not.

scholarly journals THE EFFECT OF FIRM VALUE AND FINANCIAL PERFORMANCE ON EARNINGS MANAGEMENT IN SHARIA ISSUERS: EVIDENCE FROM THE INDONESIA STOCK EXCHANGE

2020 ◽  
Vol 3 (1) ◽  
pp. 13-22
Author(s):  
Ade Imam Muslim
Keyword(s):  
Earnings Management ◽  
Financial Performance ◽  
Strong Evidence ◽  
Firm Value ◽  
Management Practices ◽  
Stock Exchange ◽  
Discretionary Accruals ◽  
Earning Management ◽  
Tobin's Q ◽  
Accounting Research

Earnings management is still an interesting focus of research from year to year. Research does not only focus on conventionally based entities but also moves to Sharia entities. This study aims to investigate the effect of firm value and financial performance on earning management. From the 20 sharia issuers that were successfully analyzed as samples, we found that, in general, there is no strong evidence that Islamic issuers practice earnings management, this can be seen from the positive average discretionary accruals. Referring to the discussion of the influence of firm value as measured by Tobin’s Q on the practice of earnings management, it was concluded that firm value had a significant effect on earnings management practices. This research has two contributions. Firstly this research is expected to contribute to market-based accounting research. Secondly, this study provides evidence of earnings management practices for Islamic entities.

Drivers of Earnings Management: The Profit and Loss before Earning Management

2014 ◽  
Vol 1 (1) ◽  
pp. 23
Author(s):  
Farzaneh Heidarpoor ◽  
Samaneh Zare Rafiee ◽  
Somayeh Zare Rafiee
Keyword(s):  
Panel Data ◽  
Earnings Management ◽  
Capital Markets ◽  
Stock Exchange ◽  
Screening Method ◽  
Discretionary Accruals ◽  
Earning Management ◽  
Management Process ◽  
Hypotheses Testing ◽  
Time Period

This study aims to evaluate the effect of two major drivers including: bad company and also the lower benefit from the profits over the previous year on earnings management process of active companies in the capital markets in Iran. Research time period is 6-year (from 2006 till 2011) and the population is all the listed companies in Tehran Stock Exchange. The sample was obtained by screening method includes 199 company. The results of hypotheses testing using panel data showed the probability of using of discretionary accruals in order to show profitable enterprise increases, when the company has loss before using earning management in Iranian market capital. The results also indicate that when the current company's profit is lower than the previous year's profit, the possibility of using the discretionary accruals increases to show positive changes in profitability. Thus, it can be announced that bad and also lower benefit from last year, are as two major driving of earnings management.

scholarly journals PENGARUH GENDER FINANCIAL EXPERTISE KOMITE AUDIT TERHADAP PRAKTIK MANAJEMEN LABA PERUSAHAAN NON-KEUANGAN YANG TERDAFTAR DI BEI PERIODE 2016-2018

2021 ◽  
Vol 14 (2) ◽  
pp. 66-86
Author(s):  
Flaviana Agustiani Yuniargo ◽  
Senny Harindahyani
Keyword(s):  
Earnings Management ◽  
Audit Committee ◽  
Management Practices ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Discretionary Accruals ◽  
Multiple Linear Regression Analysis ◽  
Financial Expertise ◽  
A Company ◽  
Positive Effect

Earnings management is a manager's choice to choose accounting policies or real actions to achieve certain earnings goals. This study aims to examine the effect of the gender financial expertise of the audit committee on earnings management practices. This study uses 852 samples of non-financial companies listed on the Indonesia Stock Exchange in 2016-2018 by using multiple linear regression analysis with classical assumption testing. The result of this study is the indication that committee audit financial expertise (EXPERT), proportion of the number of women on the audit committee (ACFD), and proportion of female financial experts on the audit committee (FEMEX) do not have a significant influence on earnings management as measured by using discretionary accruals. On the contrary, the proportion of male financial experts on the audit committee (MALEX), has a significant positive effect on earnings management. This shows that the presence of financial expertise that affects earnings management has been influenced by the sex of male financial experts. This research is in accordance with the theory that reveals that there are different effects with the existence of gender differences in a company.

scholarly journals Earnings Management and Dividend Policy: Testing Audit Quality for the Moderating Effect

2021 ◽  
Vol 5 (1) ◽  
pp. 45-54
Author(s):  
ASIF ZEB ◽  
DR. ARIF HUSSAIN ◽  
DR. ALAM RAHMAN
Keyword(s):  
Earnings Management ◽  
Dividend Policy ◽  
Audit Quality ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
Discretionary Accruals ◽  
Moderating Effect ◽  
Earning Management ◽  
Cross Sectional ◽  
Policy Testing

The study is about the moderating effect of audit quality on the relationship between earning management and dividend policy in manufacturing sector of Pakistan. Firms listed in Pakistan Stock Exchange (PSE) have been considered to investigate the effect of earnings management on dividend policy from 2010 to 2016 in Pakistan. The dividend policy is calculated by dividend payout ratio whereas the discretionary accruals have been used for the measurement of earning management and this is taken as a proxy to estimate the earning management. The modified cross sectional model is adopted to quantity discretionary accruals. From the analysis, it is concluded that earning management has influence on dividend policy which rejects null hypothesis of the study. The regression coefficients explain that the connection is too weak that it is most near to no connection. The reason of this no connection or influence is financial decline time period, as earning management varies annually.

MANAJEMEN LABA PADA PERlJSAHAAN BERMASALAH

2007 ◽  
Vol 8 (2) ◽  
pp. 188
Author(s):  
Lailatul Amanah
Keyword(s):  
Earnings Management ◽  
Management Practice ◽  
Discretionary Accruals ◽  
T Test ◽  
Earning Management ◽  
Jones Model ◽  
Test Of Hypothesis ◽  
Abnormal Accruals ◽  
Reported Earnings

The objective of this study was to examine earning management practice to companies with persistencely loss. This study employs accruals model especially discretionary accruals from Jones model to measure earnings management. This study employs t-test to test of hypothesis that the troubled companies have more abnormal accruals than non­ troubled companies. Contrary to hypothesis this reseach provide evidence both the troubled companies and nontroubled companies have managed earnings to reported earnings upward. Discretionary accruals mean to troubled companies and nontroubled companies were  0.305 and 0. 190 respectively. Mean d!ffrences of abnormal accruals is not siqnificant to both troubled companies and nontroubled companies.

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 Earnings management and income tax evidence from Greece

2015 ◽  
Vol 12 (2) ◽  
pp. 511-529 ◽  
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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