The role of corporate governance in the relationships of family company with real earnings management

The purpose of this research was to determine the effect of family ownership on real earnings management with corporate governance as a moderation variable in this relationship. This research is also looking at the role of accrual earnings management as a substitute in the relationship accrual earnings management with real earnings management in a family company. This study uses data 61 manufacturing companies on the Indonesia Stock Exchange in the period 2010 to 2013. The research results according to which hypothesized that family firms tend to negatively affect with real earnings management. The role of corporate governance as strengthening internal oversight negative effect on family companies with real earnings management. The results also proved the existence of a relationship of substitution for family firms tend to be doing accrual earnings management than real earnings management. This is because on the one hand the motivation of control as a strong incentive to do accrual earnings management in the family company, while on the other hand, the family companies tend to dislike real earnings management for their negative performance impact.

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Reputasi perusahaan keluarga: Accrual dan real earnings management

Journal of Business and Banking ◽

10.14414/jbb.v10i2.2445 ◽

2021 ◽

Vol 10 (2) ◽

pp. 265

Author(s):

William Sebastian Tanusaputra ◽

Rizky Eriandani

Keyword(s):

Logistic Regression ◽

Earnings Management ◽

Family Firms ◽

Stock Exchange ◽

Corporate Image ◽

Real Earnings Management ◽

Financial Reports ◽

The Family ◽

Company Reputation ◽

Negative Effect

This study examined the effect of earnings management on reputation in family firms listed on the Indonesia Stock Exchange (ISE). The data were collected from audited financial reports of companies listed on the Indonesia Stock Exchange for 2017-2019. The data were slected by using a purposive sampling towards 264 companies. The data of company reputation comes from the corporate image reward website, and they were analyzed using logistic regression. The results showed there is no effect of accrual earnings management (AEM) on the family firms’ reputation. On the contrary, real earnings management (REM) has a significant negative effect on family firms. This result implies that earnings manipulation by adjusting the company’s operations will result in a bad reputation.

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The effect of financial distress and earnings management on tax aggressiveness with corporate governance as the moderating variable

International Journal of Research in Business and Social Science (2147-4478) ◽

10.20525/ijrbs.v9i7.965 ◽

2020 ◽

Vol 9 (7) ◽

pp. 167-176

Author(s):

Ratih Pujirahayu Nugroho ◽

Sutrisno T Sutrisno ◽

Endang Mardiati

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Financial Distress ◽

Stock Exchange ◽

Real Earnings Management ◽

Audit Committees ◽

Manufacturing Companies ◽

Sample Collection ◽

Financial Reports ◽

Tax Aggressiveness

This study aims to verify the correlation between financial distress and earnings management of tax aggressiveness moderated by corporate governance. This study uses a population of manufacturing companies that publish their financial statement on the Indonesia Stock Exchange from 2017 until 2018. Sample collection was performed using a purposive sampling method, resulting in a total of 212 populations that published complete financial reports. This study was tested by using the Multiple Regression Analysis test. This research gave empirical proofs that financial distress and real earnings management positively influenced the tax aggressiveness was supported, the proportion of independent commissioners weakened the financial distress and negatively impacted the tax aggressiveness was supported, the total audit committees weakened the financial distress and negatively influenced the tax aggressiveness was not supported, the proportion of independent commissioners and total audit committees weakened the real earnings management and negatively affected the tax aggressiveness was not supported

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IFRS ADOPTION AND EARNINGS MANAGEMENT PRACTICE: EVIDENCE FROM INDONESIA COMPANIES

JURNAL AKUNTANSI EKONOMI dan MANAJEMEN BISNIS ◽

10.30871/jaemb.v7i2.1808 ◽

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.

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Pengaruh Strategi Bisnis, Financial Leverage Terhadap Manajemen Laba Dengan Corporate Governance Sebagai Variabel Moderasi

JURNAL EKSPLORASI AKUNTANSI ◽

10.24036/jea.v3i1.342 ◽

2021 ◽

Vol 3 (1) ◽

pp. 203-217

Author(s):

Husnaini Dwi Wanri ◽

Erinos NR

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Business Strategy ◽

Stock Exchange ◽

Secondary Data ◽

Sampling Technique ◽

Real Earnings Management ◽

Manufacturing Companies ◽

Financial Leverage ◽

Strategy Variables

This study aims to examine the effect of business strategy and financial leverage as moderated by corporate governance in predicting real earnings management. This type of research is a causal association with a quantitative approach. The population used in this study are all manufacturing companies listed in Bursa Efek Indonesia 2016-2019. The sampling technique in this study using the purposive sampling technique, there are 80 manufacturing companies used as research samples. The business strategy variables are measured by the cost leadership strategy model for the current year. Earnings management variables are calculated by aggregating the triggering factors for earnings management, namely sales manipulation, overproduction, and discretionary spending. The leverage variable is calculated by the ratio of debt to assets and the moderating variable is measured by the proportion of share ownership by the managerial party. The data used in this study is secondary data obtained from the company's financial statements obtained from the official website of the Indonesia Stock Exchange and the official website of each company. The analytical method used is the multiple regression method which is processed using the SPSS 16 application. The results show that business strategy, financial leverage has a significant positive effect on real earnings management, CG can increase or weaken the relationship between business strategy, leverage on real earnings management but not significantly

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THE ROLE OF CORPORATE GOVERNANCE IN THE EFFECT EARNINGS MANAGEMENT HAS ON FIRM VALUE

Journal of Indonesian Economy and Business ◽

10.22146/jieb.12793 ◽

2017 ◽

Vol 31 (1) ◽

pp. 51

Author(s):

Surifah .

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Firm Value ◽

Stock Exchange ◽

Market Price ◽

Positive Influence ◽

Real Earnings Management ◽

Positive Effects ◽

Governance Practices

Previous researchers found that managers have conducted opportunistic earnings management (Abdolmohammadi et al., 2010; Crocker and Slemrod, 2007;Cornett et al., 2009; Jaggi et al., 2009). Corporate Governance (CG) is one of the instruments to overcome, or at least to minimize, earnings management. This research aims to provide empirical evidence about the effect of CG and earnings management on firm value, and the role of CG in the effect earnings management has on firm value. This research is needed, to explain the effectiveness of CG’s implementation by influencing earnings management, in order to lead to more efficient earnings management.This study uses national commercial banks’ data listed on the Indonesian Stock Exchange for the period 2006-2013. The research sample consists of 29 banks over an 8 year period, with a total of232 observations. The research variable consists of the value of the firm, measured by Tobin’s Q as the dependent variable, real activity-based earnings management and accrual-based earnings management as the independent variables and corporate governance, measured by the CG index, as a moderating variable.The results show that the CG index has a robust relationship with performance, controlled by both the ownership concentration’s level and the size of the bank. Corporate governance has positive effects on firm value. The bigger the corporate governance disclosure score is, the higher the market value of the bank becomes. These results indicate that markets respond to the corporate governance’s disclosure, so the company’s market price increases. The results show that the CG index reinforces the positive influence of Accrual-based Earnings Management (AEM) and Real Earnings Management (REM) on the performance. These results indicate that corporate governance practices are able to steer earnings management away from the opportunistic and into the efficiency spectrum.

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KUALITAS AUDIT SEBAGAI PEMODERASI PENGARUH MANAJEMEN LABA TERHADAP NILAI PERUSAHAAN

Jurnal Akademi Akuntansi ◽

10.22219/jaa.v3i2.12269 ◽

2020 ◽

Vol 3 (2) ◽

pp. 174-190

Author(s):

I Putu Edi Darmawan

Keyword(s):

Earnings Management ◽

Firm Value ◽

Audit Quality ◽

Stock Exchange ◽

Sampling Technique ◽

Discretionary Accruals ◽

Real Earnings Management ◽

Manufacturing Companies ◽

Negative Effect ◽

The Impact

This study aims to test and analyze the impact of accrual earnings management and real earnings management on firm value empirically. Also, audit quality's role on the effect of accrual earnings management and total earnings management on firm value. The analytical method used is Moderated Regression Analysis (MRA). This research's population is manufacturing companies listed on the Indonesia Stock Exchange during the period 2013 to 2017. The sampling technique used is purposive sampling. This study found that accrual earnings management, which is proxied by discretionary accruals, positively affects firm value. Real earnings management has a negative effect on firm value. Audit quality cannot weaken the effect of accrual earnings management on firm value. However, audit quality weakens the effect of real earnings management on firm value.

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Corporate Governance and Earnings Management: Empirical Evidence of the Distress and Non-Distress Companies

GATR Journal of Accounting and Finance Review (AFR) Vol. 4 (4) Oct-Dec 2019 - GATR Accounting and Finance Review ◽

10.35609/afr.2021.5.4(3) ◽

2021 ◽

Vol 5 (4) ◽

pp. 23-30

Author(s):

Theresia Theresia ◽

Dewi Kurnia Indrastuti ◽

Nico Alexander

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Empirical Evidence ◽

Financial Distress ◽

Audit Committee ◽

Management Practices ◽

Stock Exchange ◽

Institutional Ownership ◽

Manufacturing Companies ◽

Negative Effect

Objective - The purpose of this research is to obtain empirical research on the effect of corporate governance on earnings management in distressed and non-distressed companies. Corporate governance in this research is measured by independent board, audit committee, board of commissioners, institutional ownership and number of board commissioner meetings. The research predicts that corporate governance has a negative effect on earnings management either both in distressed and non-distressed companies. Methodology/Technique - This research uses 309 manufacturing companies listed on the Indonesian Stock Exchange and the data was obtained using purposive sampling method during 2016 until 2018. Of the 309 respondents in the sample, 287 are distressed companies and 22 are non-distressed companies. The data was analyzed using a multiple regression method. Findings - The empirical results show that commissioner board and institutional ownership have a negative effect on earnings management in non-distressed companies but in distressed companies, corporate governance does not have an effect on earnings management. This research shows that distressed companies, corporate governance cannot minimize earnings management practices because to maintain the company as a going concern, management will do earnings management to ensure stakeholders’ trust to encourage further investment in the company. In non-distressed companies, corporate governance can minimize earnings management practices because the company is in a good financial condition, so they don’t need to do earnings management. Additionally, in order to ensure stakeholders’ trust, the company will strengthen its’ corporate governance mechanisms. Type of Paper: Empirical. JEL Classification: M41, M43, G34, J33, K22. Keywords: Financial Distress; Earnings Management; Non-Financial Distress; Indonesia Stock Exchange. Reference to this paper should be made as follows: Theresia; Indrastuti, D. K; Alexander, N. (2021). Corporate Governance and Earnings Management: Empirical Evidence of the Distress and Non-Distress Companies, Accounting and Finance Review, 5(4): 23 – 30. https://doi.org/10.35609/afr.2021.5.4(3)

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Pengaruh Corporate Governance Terhadap Hubungan Keterlibatan Dewan Di Bidang Politik Dan Manajemen Laba

Jurnal Akademi Akuntansi ◽

10.22219/jaa.v4i2.16659 ◽

2021 ◽

Vol 4 (2) ◽

pp. 138-151

Author(s):

Yeasy Darmayanti ◽

Dandes Rifa ◽

Irna Khairia

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Hypothesis Testing ◽

Board Of Directors ◽

Stock Exchange ◽

Political Connections ◽

Manufacturing Companies ◽

The Board Of Directors ◽

Negative Effect ◽

The Relationship

This study aims to analyze the effect of corporate governance on the relationship between board involvement in politics and earnings management in manufacturing companies on the Indonesia Stock Exchange. This study used 63 manufacturing companies which were selected using purposive sampling method. The data analysis method used is multiple regression which is processed through the help of the SPSS program. Based on the results of hypothesis testing, it was found that the board of commissioners involved in politics had a significant positive effect on earnings management. Meanwhile, the board of directors with political connections and corporate governance individually has a significant negative effect on earnings management. In the results of hypothesis testing, it is also found that the board of commissioners and the board of directors who have political connections have a significant effect on earnings management with corporate governance as a moderating variable in manufacturing companies on the Indonesia Stock Exchange. The results of this study found that the implementation of corporate governance will have a different impact on the relationship between the board of commissioners and the board of directors on earnings management. In the relationship between the board of commissioners and earnings management, corporate governance is able to weaken earnings management activities. Meanwhile, in the relationship between the board of directors and earnings management, corporate governance can strengthen earnings management activities.

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PENGARUH REPUTASI AUDITOR TERHADAP MANAJEMEN LABA DENGAN CORPORATE GOVERNANCE SEBAGAI VARIABEL PEMODERASI (PERUSAHAAN MANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA)

BALANCE Jurnal Akuntansi dan Bisnis ◽

10.32502/jab.v2i2.1177 ◽

2017 ◽

Vol 2 (2) ◽

pp. 244

Author(s):

Agus Tri Mulyono

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Firm Size ◽

Stock Exchange ◽

Secondary Data ◽

Observation Data ◽

Manufacturing Companies ◽

Control Variables ◽

Book Value ◽

Negative Effect

ABSTRACK The purpose of this study is to examine the effect of the auditor's reputation on earnings management and to examine the effect of the auditor's reputation on earnings management moderated by corporate governance. This study uses three control variables, namely firm size, leverage and market to book value. The data used in this study is secondary data derived from the financial statements of manufacturing companies listed on the Indonesia Stock Exchange in 2013-2015. By using purposive sampling, this study uses 109 sample companies with a period of 3 years, resulting in 327 years of observation. Data analysis method used in this research is Simple Linear Regression with Ordinary Least Squared (OLS) and Moderating Regression Analysis (MRA) approach. The results showed that the auditor's reputation had a significant negative effect on earnings management and Corporate Governance had no effect as moderator of earnings management. Of the three control variables used in this study, only leverage (DER) has an effect on earnings management, while the other two variables ie firm size and market to book value have no effect

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THE EFFECT OF CORPORATE GOVERNANCE TO REAL EARNINGS MANAGEMENT WITH AUDIT QUALITY AS A MODERATING VARIABLE EMPIRICAL STUDY ON COMPANIES LISTED IN INDONESIA STOCK EXCHANGE

Jurnal Magister Akuntansi Trisakti ◽

10.25105/jmat.v4i1.4984 ◽

2017 ◽

Vol 4 (1) ◽

pp. 1

Author(s):

M. Anwar Masruri ◽

Vinola Herawaty

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Audit Quality ◽

Stock Exchange ◽

Sample Selection ◽

Real Earnings Management ◽

Company Size ◽

Variable Model ◽

Negative Effect ◽

Positive Effect

This research is conducted in the period 2013 to 2015 and the selected sample with purposive sampling method using criteria that have been determined. Samples are selected for companies that present the required data in this study. A total of 75 sample companies that have criteria based on this sample selection method. The method of analysis applied in this research is quantitative method and statistical analysis used is multiple regression analysis.The result of the research shows that CG variable has significant negative effect on REM_Index model, Audit Quality variable strengthen negative correlation between Corporate Governance and Real Earnings Management significantly, Audit Quality and Company Size negatively affect REM_Index model on Abn_CFO model, Audit Quality variable proved to influence Abn_CFO. Abn_DisEx variable model of Corporate Governance proved negatively significant to Abnormal Discreationary Expenses and Abn_Prod Models Moderation and Company Size Model has a significant positive effect on Abnormal Production Cost.

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