scholarly journals The Effects of Real Earnings Management on the Profitability of the Company

2019 ◽  
Vol 7 (6) ◽  
Author(s):  
Abeer Al-Zahrani
Keyword(s):  
Earnings Management ◽  
Research Design ◽  
Secondary Data ◽  
Research Paper ◽  
Real Earnings Management ◽  
Company Performance ◽  
Corporate Value ◽  
Research Findings ◽  
The Relationship ◽  
A Company

This research paper was focused on investigating the effects of managing real earnings on the profitability performance of a company. The study used secondary data where co-relational research design was employed. The study used 250 companies selected from “Top 500 Companies listed on the Bombay Stock Exchange” as the sample of the study. The research findings explicitly show that managing real earnings practices adversely affect the company performance together with its corporate value. This research thus expansively contributes to the existing knowledge and literature on the relationship between managing real earnings activities and the profitability performance of a company and its corporate value.

scholarly journals FINANCIAL DISTRESS AND EARNINGS MANAGEMENT IN INDONESIA: THE ROLE OF INDEPENDENT COMMISSIONERS

2021 ◽  
Vol 07 (01) ◽  
Author(s):  
Vania Agatha Rusci ◽  
◽  
Setyarini Santosa ◽  
Vita Elisa Fitriana ◽  
◽  
...  
Keyword(s):  
Earnings Management ◽  
Financial Distress ◽  
Stock Exchange ◽  
Secondary Data ◽  
Real Earnings Management ◽  
Earning Management ◽  
Panel Regression ◽  
Relationship Of ◽  
The Relationship

Abstract: This research aims to find out whether the presence of independent commissioner can restrict the manipulation of earnings by management in financially distressed companies. Earning management used in this research is accrual as well as real earning management. This research employs quantitative method with data panel regression model. The sample used in this study is secondary data obtained from consumer goods industry listed on Indonesia Stock Exchange during the period of 2015 until 2019. The result of this study revealed that both accrual earnings management and real earnings management are significantly influenced by financial distress. However, independent commissioner fails to moderate the relationship of financial distress with both accrual earnings management and real earnings management. This research gives an insight and input to the management as the evaluation material, so that the earnings manipulation could be reduced or even not carried out. Abstrak: Penelitian ini bertujuan untuk mengetahui apakah keberadaan komisaris independen dapat membatasi manipulasi laba oleh manajemen pada perusahaan yang mengalami financial distress. Manajemen laba yang digunakan dalam penelitian ini adalah manajemen laba akrual dan manajemen laba riil. Penelitian ini menggunakan metode kuantitatif dengan model regresi data panel. Sampel yang digunakan dalam penelitian ini adalah data sekunder yang diperoleh dari industri barang konsumsi yang terdaftar di Bursa Efek Indonesia selama periode 2015 hingga 2019. Hasil penelitian ini mengungkapkan bahwa baik manajemen laba akrual maupun manajemen laba riil dipengaruhi secara signifikan oleh financial distress. Namun, komisaris independen gagal memoderasi hubungan financial distress dengan manajemen laba akrual dan manajemen laba riil. Penelitian ini memberikan wawasan dan masukan kepada pihak manajemen sebagai bahan evaluasi, sehingga manipulasi laba dapat dikurangi atau bahkan tidak dilakukan.

scholarly journals Real Earnings Management and Dividend Payout among Non-financial Institutions in Nigeria

2020 ◽  
pp. 39-54
Author(s):  
Peter E. Ayunku ◽  
Ekokeme, Tamaroukro Timipere
Keyword(s):  
Earnings Management ◽  
Research Design ◽  
Financial Institutions ◽  
Secondary Data ◽  
Real Earnings Management ◽  
Data Set ◽  
Dividend Payout ◽  
Banking And Finance ◽  
Ex Post ◽  
Ex Post Facto

Aims: This study seeks to evaluate the consequences of real earnings management and dividend payout among non-financial institutions in Nigeria. Study Design: The study adopted Descriptive and ex-post facto research design. Place and Duration of Study: Department of Banking and Finance, Niger Delta University, Wilberforce Island, Bayelsa State, Nigeria. The study was carried out between October 2019 and January 2020. Methodology: To this end, we made use of Descriptive and ex-post research design, secondary data set, collected from thirty five quoted non-financial institutions for the period 2015 and 2018 financial period. The data were analyzed using Descriptive Statistics, Correlation Matrix. Results: Our findings align with the agency theory which suggests that despite the fact that corporate contracting is primarily designed to align incentives between principals and agents, agency concerns are still created as a result of incompleteness and rigidities in binding of contracts, which lead to manipulation of the reporting process consequently altering shareholders returns in form of dividend payout. Conclusion: Specifically, we find that real earnings management is been modulated through expenses. The variables of abnormal production and cash flow from operations show no significant effect on dividend payout with respect to the institutions and period under review.

scholarly journals Unconditional Accounting Conservatism and Real Earnings Management

2018 ◽  
Vol 9 (2) ◽  
pp. 203 ◽  
Author(s):  
Han Li
Keyword(s):  
Earnings Management ◽  
Internal Control ◽  
Negative Relationship ◽  
Robustness Analysis ◽  
Accounting Conservatism ◽  
Real Earnings Management ◽  
Audit Risk ◽  
Operation Costs ◽  
Abnormal Operation ◽  
The Relationship

This research examines the relationship between unconditional accounting conservatism and real earnings management in China’s corporations. Using the regression models, the real earnings management proxies are found by the abnormal cash flow of operations, the abnormal operation costs and the abnormal discretionary expenses and the aggregated measures. The research sheds light on the negative relationship between unconditional accounting conservatism and real earnings management after controlling internal control quality and audit risk. The results of these inferences remain the same after dealing with the robustness analysis and the endogeneity concerns.

scholarly journals A Study on the Relationship between Earnings Quality and Capital Cost-Takes the China Listed Companies as a Sample

2021 ◽  
pp. 48-56
Author(s):  
Chih-Yi Hsiao ◽  
Hui-Hui Kuang ◽  
Hui-Ling Li ◽  
Jia-Li Liu
Keyword(s):  
Earnings Management ◽  
Earnings Quality ◽  
Least Square Method ◽  
Listed Companies ◽  
Capital Cost ◽  
Least Square ◽  
Accounting System ◽  
Ordinary Least Square ◽  
Research Findings ◽  
The Relationship

The phenomenon of false financial statements still exists. However, in addition to the risk of being punished, what kind of price do companies have to pay? In recent decades, with China's rapid progress in economic, the relevant accounting system and corporate governance standards are actively improving, and the earnings quality is improving. This paper takes China's listed companies from 2015 to 2019 as samples, and adopts quantile regression supplemented by ordinary least square method to explore the relationship between earnings quality and capital cost. The research findings show that the higher the earnings management, the higher the capital cost, especially for the company with low capital cost. Nevertheless, for the extremely company with high capital cost, earnings management can reduce the capital cost. The research results can provide the focus of regulators of listed companies and reference for the revision of relevant accounting system.

scholarly journals The impact of ownership type on the relationship between corporate governance and earnings management: An empirical study

2019 ◽  
Vol 16 (4) ◽  
pp. 31-44
Author(s):  
Ahmed Boghdady
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Cash Flows ◽  
Real Earnings Management ◽  
Ownership Type ◽  
Moderation Effect ◽  
Corporate Governance Mechanisms ◽  
The Impact ◽  
The Relationship ◽  
Privately Owned

This study investigates the effect of ownership type on the relation between corporate governance and earnings management. While previous literature has mainly examined the relationship between corporate governance and both accrual and real earnings management, no study to date, to the researcher’s best knowledge, focused on the moderation effect of ownership type on this relationship. Three proxies for measuring accrual and real earnings management, namely discretionary accruals (DA), abnormal cash flows (ACFO), and abnormal discretionary expenses (ADISX) are employed. Three empirical models (i.e. DA, ACFO, and ADISX) are developed in which the earnings management proxies represent the dependent variables and are tested using a sample of non-financial companies containing state-owned and privately owned companies over the period from 2010 to 2017, with 1030 firm-year observations. The results show a positive relationship between ownership type and both accruals manipulation and sales manipulation. In general, the results suggest that the ownership type moderates the relationship between corporate governance and earnings management. The results suggest also that corporate governance mechanisms may not play an almost the same role in monitoring and mitigating real earnings management (REM) practices as they do for accrual earnings management (AEM) in Egypt. Moreover, no evidence is found supportive of the trade-off effect which means that managers in Egyptian firms use both types of earnings management jointly to reach the target levels of earnings

FOREIGN OWNERSHIP AND CORPORATE VALUE OF LISTED CONSUMER GOODS FIRMS IN NIGERIA

2020 ◽  
Vol 1 (1) ◽  
pp. 1-11
Keyword(s):  
Stock Exchange ◽  
Secondary Data ◽  
Consumer Good ◽  
Foreign Ownership ◽  
Panel Regression ◽  
Random Effects Model ◽  
Corporate Value ◽  
Value Maximization ◽  
Descriptive Research ◽  
The Relationship

This study was motivated by the agency problem and information asymmetry problem of managers not acting completely in the interest of the owners following the shareholder’s value maximization objective. The study therefore sought to determine the effect of foreign ownership on corporate value of listed consumer good firms in Nigeria. Tobin Q was adopted as proxy for corporate value. The study adopted a descriptive research design using panel regression analysis to explain the relationship between the research variables. The population for the study was all consumer good firms listed on the Nigerian Stock Exchange (NSE) as at December 2016. Ten years panel Secondary data from CBN statistical bulletins, NSE reports, SEC reports and individual firm’s books were used for the study. From Random Effects Model of the analysis, the study found a positive non-significant effect of Foreign Ownership on Corporate Value of the sampled firms. This study recommends that foreign ownership policies of the firms can remain indifferent since its effect is insignificant.

scholarly journals How Are Company Size, Financial Performance and Corporate Governance Related to Directors' Remuneration?

2020 ◽  
Vol 11 (6) ◽  
pp. 12
Author(s):  
Norziana Lokman ◽  
Fattiadriati Mohd Tareh
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Financial Reporting ◽  
Pearson Correlation ◽  
Annual Reports ◽  
Company Size ◽  
Company Performance ◽  
Ceo Duality ◽  
The Relationship ◽  
A Company

This study examined the relationship between the company-specific characteristics, namely, company size, company performance, and company leverage and the corporate governance attributes of a company which includes CEO duality and remuneration committee independence as the predictor factors that determine directors’ remuneration. A sample of 260 public listed companies on Bursa Malaysia was selected using stratified random sampling for the financial reporting of 2018. All data concerning the company characteristics and corporate governance attributes were obtained from the annual reports of the companies, which can be accessed from the Bursa Malaysia website. Pearson correlation and multi-regression analysis were used to analyse the data to determine the relationship of the predictor variables with director remuneration. On the one hand, the results of the study showed that directors’ remuneration is positively and significantly related to the size of the company. On the other hand, the financial performance of a company is positively but weakly related to directors remuneration. The remaining predictors have no relationship with directors’ remuneration. The finding suggested that the key determinant factor of directors’ remuneration is company size whereas company performance may have a small impact. Lastly, company compliance with the recommendation of the Malaysian Code on Corporate Governance did not guarantee the effectiveness of the monitoring function of the remuneration committee in ensuring that directors’ remuneration is commensurate with company performance. The result of the study provides additional evidence and support that company size and financial performance are linked to director remuneration. Also the finding of the study reconfirmed prior study that board leadership structure (CEO duality) and remuneration committee independent have no impact on directors’ remuneration.

scholarly journals Public Agency in Changing Industrial Circular Economy Ecosystems: Roles, Modes and Structures

2020 ◽  
Vol 12 (23) ◽  
pp. 10015
Author(s):  
Jarmo Uusikartano ◽  
Hannele Väyrynen ◽  
Leena Aarikka-Stenroos
Keyword(s):  
Circular Economy ◽  
Qualitative Content Analysis ◽  
Secondary Data ◽  
International Study ◽  
Public Agency ◽  
Industrial Parks ◽  
Public Actor ◽  
Multiple Case ◽  
The Relationship ◽  
A Company

Value creation in the circular economy (CE) is a result of co-creation. In the industrial context, the theme of collaboration has been studied extensively on a company-to-company basis, but related public agency remains unexplored. Still, circular actions happen in societal contexts where public actors and logics are constantly present, enabling the change toward more sustainable actions. For systematic discovery of the topic, the following research questions are considered: (a) What roles can a public actor have in an industrial CE ecosystem? (b) What are the relationship modes a public actor can have? (c) In what kind of actor structures may the roles and modes occur? The study relies on two multiple case studies in the international (Study 1) and Finnish eco-industrial parks (Study 2) contexts. The results are based on qualitative content analysis conducted with both primary and secondary data. As a result, six distinct roles—operator, organizer, financer, supporter, policymaker, and regulator—and two modes—facilitative and dirigiste—for public agency in industrial CE ecosystems were identified. The roles depict the concrete means used by public actors whereas the modes depict the characteristics of these actions. Finally, exemplar organization models for the recognized roles and modes in industrial CE ecosystems were examined. The study provides insights into how public actors can contribute to sustainability transitions among their territories and helps practitioners to better understand the premises for public–private interaction.

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