scholarly journals KONVERGENSI IFRS DAN PELUANG PRAKTIK MANAJEMEN LABA DI INDONESIA: SEBUAH LITERATUR REVIEW

2021 ◽  
Vol 11 (2) ◽  
pp. 130-146
Author(s):  
Arief Hidayatullah Khamainy
Keyword(s):  
Decision Making ◽  
Earnings Management ◽  
Financial Reporting ◽  
Management Practices ◽  
Empirical Studies ◽  
Secondary Data ◽  
Financial Statements ◽  
Literature Study ◽  
High Quality ◽  
Support Decision Making

Earnings management practices result in the fact that the economic conditions in the company's financial statements are not actually presented so that the profits that are expected to provide information to support decision making are doubtful. The existence of IFRS encourages managers to perform high-quality financial reporting, resulting in high-quality earnings as well. This paper aims to analyze the opportunities for earnings management practices after IFRS convergence in Indonesia. The secondary data used in this literature study were obtained from empirical studies on the convergence of IFRS and earnings management in Indonesia. The results of the analysis show that the opportunity for earnings management practices will exist, both after the convergence of IFRS, so the importance of supervision carried out by investors to obtain reliable financial information as a basis for decision making.

The Likelihood of Forced Financial Restatement: The Case of Malaysia

2020 ◽  
Vol 11 (1) ◽  
pp. 144-144
Author(s):  
Intan Waheedah Othman ◽  
Richard Slack ◽  
Rebecca Stratling
Keyword(s):  
Decision Making ◽  
Earnings Management ◽  
Financial Reporting ◽  
Financial Statements ◽  
Developed Countries ◽  
Warning Signals ◽  
Foreign Investments ◽  
Financial Restatement ◽  
Emerging Country

Forced restatement is the corrections made to published financial statements as prompted by the auditors or regulators due to non-compliance with the Generally Accepted Accounting Practices (GAAP) (Palmrose and Scholz, 2004). Forced restatements that are due to aggressive financial irregularities, lead to the impairment of investors' confidence on the quality of financial reporting, increase investors' concerns on managerial opportunistic decision-making, and cause substantial losses to shareholders. Forced restatement creates great concern, not only in developed countries, but also in developing countries, thus threatening local and foreign investments in these markets. The effort to determine early warning signals of firms that warrant investigation, specifically in the emerging country of Malaysia remain significant. The review from this study would be beneficial to the auditors and regulators to intervene earlier in terms of formulating plans and strategies to minimize aggressive managerial behaviour, and investors, customers, and suppliers to identify and avoid firms at risk of requiring a forced restatement. Keywords: Forced restatement, earnings management, corporate governance, Malaysia.

scholarly journals COVID-19 IN INDONESIA: ANALYSIS OF DIFFERENCES EARNINGS MANAGEMENT IN THE FIRST QUARTER

2021 ◽  
Vol 11 (1) ◽  
pp. 23-32
Author(s):  
Widyaningsih Azizah
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Secondary Data ◽  
Financial Statements ◽  
Wilcoxon Test ◽  
Actual Condition ◽  
Financial Report ◽  
The Difference ◽  
Financial Company

The COVID-19 pandemic, which began in the first quarter (Q1) of 2020 in Indonesia, has certainly had a major impact on the company’s financial performance. The first-quarter financial report should have been able to show the actual condition of the financial company because it can be a projection for investors and analysts regarding the company’s performance in the next period. Unfortunately, many gaps in financial reporting that can provide space for management to commit earnings management. This study aims to prove the difference in earnings management in the Q1 of 2020, namely the period after the COVID-19 pandemic with the Q1 of 2019, namely the period before the COVID-19 pandemic. The data type of the research is secondary data using the financial statements of companies listed on the Indonesian Stock exchange in the Q1 of 2018, the Q1 of 2019, and the Q1 of 2020. The Q1 of 2018 is needed in this research related to the search for the Q1 of the year of 2019 data. Hypothesis testing was conducted using the Wilcoxon test with SPSS 25 software. This research has proven that there is a difference in earnings management in the Q1 of 2019, namely before the COVID-19 pandemic, and the Q1 of 2020, named after the COVID-19 pandemic. The level of earnings management during the COVID-19 pandemic represented in the Q1 of 2020 was lower than the earnings management in the period before the COVID-19 pandemic, namely in the Q1 of 2019.

scholarly journals STANDAR AKUNTANSI KEUANGAN DAN PRAKTIK MANAJEMEN LABA DI INDONESIA

2020 ◽  
Vol 4 (2) ◽  
pp. 226-237
Author(s):  
Eni Indriani ◽  
Rahmi Sri Ramadhani ◽  
Widia Astuti
Keyword(s):  
Data Analysis ◽  
Earnings Management ◽  
Financial Reporting ◽  
Management Practices ◽  
Accounting Standards ◽  
Financial Statements ◽  
T Test ◽  
Financial Accounting ◽  
Analysis Technique ◽  
Accounting Principle

Financial reporting in Indonesia is based on accrual-based Financial Accounting Standards (SAK), where according to Watts and Zimmerman (1986) accounting recorded on an accrual basis is subject to managerial discretion, due to the flexibility given by the General Accepting Accounting Principle (GAAP), which gives managers encouragement to modify financial statements (earnings management). This study aims to map earnings management practices in Indonesia after convergent Financial Accounting Standards on IFRS. The data analysis technique used in this study is the two different test average with the t-test (independent sample t-test). The results of data analysis found that there were no significant differences. This is caused by the same earnings management pattern. The highest level of earnings management implementation exists in countries with weaker legal institutions and higher levels of pre-transition earnings management, which are partially and fully associated with market value and returns, which means that earnings management practices continue to be carried out because market demands for high rates of return on investment.

scholarly journals Financial Reporting and Shareholders’ Crave for Investment in Nigerian Listed Companies: The Earnings Management Question

2020 ◽  
Vol 5 (3) ◽  
Author(s):  
Uwem Etim Uwah ◽  
Joseph O. Udoayang
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Empirical Studies ◽  
Relevant Literature ◽  
Secondary Data ◽  
Financial Reports ◽  
Audit Firms ◽  
Corporate Governance Practice ◽  
Financial Consultants

This study examined the extent to which earnings management could be a factor in the higher value of stock in the Nigerian capital market, thereby being an inducement to invest in companies listed in the Nigerian Stock Exchange. The contemporary viewpoint of financial consultants, firm of auditors and academicians about the subject matter was sought. Interviews were granted, in conjunction with secondary data from the Security and Exchange Commission and the Nigerian Stock Exchange. A comprehensive research design which was garnished by the use of content analysis of relevant literature and theories was adopted. The findings of previous empirical studies were corroborated in the analysis from discussions with accounting professionals in the academia and audit firms. It was concluded that most investments in quoted companies are made as a result of earnings management mechanisms inherent in financial reports. It was recommended that the Financial Reporting Council of Nigeria and every stakeholder should act to ensure that corporate governance practice is actually achieved for sound financial reporting practice.

scholarly journals Board Structure of Corporate Organizations and Earnings Management: Does Size and Independence of Corporate Boards Matter for Nigerian Firms?

2021 ◽  
Vol 12 (1) ◽  
pp. 329
Author(s):  
Abel Oghenevwoke Ideh ◽  
Edirin Jeroh ◽  
Orits Frank Ebiaghan
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Secondary Data ◽  
Financial Statements ◽  
P Value ◽  
Board Independence ◽  
Board Structure ◽  
Corporate Boards ◽  
Industrial Sectors ◽  
Mediating Variables

The relationship subsisting between board structure of corporate organizations and earnings management has attracted several concerns particularly to regulatory agencies, management, accounting practitioners and researchers alike. Therefore, this study, examined the extent to which board independence and size influence the level of earnings management of publicly quoted Nigerian firms. For this purpose, the adoption of the International Financial Reporting Standards (IFRS) and the age of firms were introduced as mediating variables. Secondary data were however pooled from the financial statements of ninety-two (92) firms cutting across ten (10) industrial sectors from 2007–2018 (12 years). The regression analysis amidst other relevant statistical techniques was adopted to analyze the collated pooled data. Evidence from our result indicates that with the introduction of IFRS adoption and firm age as mediating variables, the Fcal obtained was 1.72 (p-value = 0.1424), thus indicating that the size of boards and the presence of independent directors (board independence) in corporate boards could not significantly influence the level of earnings management in Nigerian firms. We therefore recommend that in order to regulate managements’ opportunistic behavior/earnings management, regulators and stakeholders who are charged with the task of performing oversight functions on the activities of management should lay more emphasis on ensuring that preparers of financial statements fully comply with the provisions of IFRS and other regulatory requirements for financial reporting.

scholarly journals Fenomena Manajemen Laba Pada Perbankan Syariah di Indonesia dan Tindakan Mitigasinya

2019 ◽  
Vol 3 (2) ◽  
pp. 1
Author(s):  
Ilham Illahi
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Management Practices ◽  
Financial Statements ◽  
Islamic Banking ◽  
Literature Study

<p class="Affiliation">Islamic banking in Indonesia runs its activities using the concept of sharia based on the Qur'an and Al-Hadis. The sacred foundation should have an impact on the quality of financial statements that are higher than conventional banking. However, the facts that occur indicate a contradiction in the findings of researchers related to earnings management practices that occur in Islamic banking. This study describes these contradictions for answering the phenomenon of earnings management in Islamic banking. This research uses literature study to discuss the formulation of the problem. The results of the discussion found the existence of earnings management practices in Islamic banking . The mitigation that can be done by Islamic banking is the maximum application of <em>corporate governance </em> and using the services of qualified and reputable auditors to examine the bank's financial statements.</p><p class="Affiliation"> </p><p>Perbankan syariah di Indonesia menjalankan kegiatannya menggunakan konsep syariah yang berlandaskan kepada Al- quran dan Al-hadist. Landasan yang suci tersebut seharusnya berdampak kepada kualitas laporan keuangan yang lebih tinggi dibandingkan perbankan konvensional. Namun, fakta yang terjadi menunjukkan adanya kontradiksi temuan peneliti terkait dengan praktik manajemen laba yang terjadi pada perbankan syariah. Penelitian ini menguraikan kontradiksi tersebut sekaligus menjawab mengenai fenomena manajemen laba pada perbankan syariah. Penelitian ini menggunakan studi <em>literature</em> untuk membahas rumusan masalah. Hasil dari pembahasan ditemukan adanya praktik manajemen laba pada perbankan syariah.  Adapun mitigasi yang bisa dilakukan oleh perbankan syariah ialah penerapan <em>corporate governance</em> secara maksimal serta menggunakan jasa auditor yang berkualitas dan bereputasi untuk memeriksa laporan keuangan bank.</p>

scholarly journals DRIVERS OF AUDIT FAILURE AND FRAUDULENT FINANCIAL REPORTING: EVIDENCE FROM NIGERIAN DISTRESSED BANKS

2019 ◽  
Vol 18 (1) ◽  
pp. 1
Author(s):  
Augustine Ehijeagbon Akhidime
Keyword(s):  
Financial Reporting ◽  
Management Practices ◽  
Audit Quality ◽  
Empirical Studies ◽  
Financial Statements ◽  
Audit Fees ◽  
Policy Implications ◽  
Executive Directors ◽  
Fraudulent Financial Reporting ◽  
Undue Influence

This study examined the drivers (prime facilitators and the motivations) of fraudulent financial reporting and audit failures in distressed Nigerian distressed banks. The study carried out an analytical  review of literature that includes previous empirical studies, reports of investigations of the Nigerian Banks by Financial Regulatory Agencies and  content analysis of the audited financial statements of the distressed banks. The major findings of this study are that the Audit failures that featured in the distressed banks were driven by the overwhelming influence of the board over their auditors. The board through the purchase of their ‘desired’ poor  audit  quality’ at high cost, exposed the auditors to economic bonding  which  compromised their independence and  facilitated  the  issuance of favourable/unqualified  audit opinion on  the board’s fraudulent financial statements that covered up the boards unethical management practices and  material irregularities that undermined the going concern prospects of the banks. The auditors favourable opinions were  proved to be untrue, thus resulting in  Audit failures. The policy  implications of the inferences from this  study is that  the Nigerian legal and  corporate  accounting and auditing  framework  require the  fundamental re-engineering of its rules and structure so as to shield auditors from the undue influence of the  boards, checkmate the excesses of the executive  directors through the upward review of the proportion of non-executive directors on boards, while also  providing  adequate  control over the periodic upward review of audit fees.

scholarly journals RELEVANSI PENGUNGKAPAN TRANSAKSI PIHAK BERELASI. APAKAH PASAR MEMBERIKAN RESPON?

2018 ◽  
Vol 1 (1) ◽  
pp. 25
Author(s):  
Dian Yuni Anggraeni
Keyword(s):  
Decision Making ◽  
Data Processing ◽  
Earnings Management ◽  
Empirical Evidence ◽  
Key Management ◽  
Stock Price ◽  
Financial Statements ◽  
Related Party Transactions ◽  
Related Party Transaction ◽  
Support Decision Making

Information is the result of a number of data processing. The relevance of information related to the usefulness of the information to support decision-making. One of the information in the financial statements which are popular is the information about transactions with related parties. This information is important because it can be used as a tool for management to report its best performance, which in fact is not (earnings management - opportunistic).  This study sought to provide empirical evidence about the relevance of the extent of disclosure of related party transactions. Relevance proxies at the company's stock price. The results indicate that the related party transaction information which is proxied by the extent of disclosure of compensation of key management and reported presence of sales and purchases with related parties is relevant to the market  Keywords: disclosure, related parties transaction, relevance.

scholarly journals Earning Management Analysis before and after Implementation of International Financial Reporting Standards (IFRS): Empirical Study of Automotive and Components Companies Registered on the IDX

2019 ◽  
Vol 1 (01) ◽  
pp. 45-56
Author(s):  
I Wayan Wisnu Utama ◽  
Anis Purwanti
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Management Practices ◽  
Stock Exchange ◽  
Financial Statements ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Reporting Standard ◽  
Financial Reporting Standards ◽  
Before And After

  The issue of the application of IFRS as a standard can encourage a decrease in the level of earnings management in a company so that the application of IFRS in financial statements has the purpose of providing reports that are faithful in nature so that the report users are reliable. The purpose of this study is to show a comparison of earnings management practices that occurred before and after the implementation of International Financial Reporting Standards (IFRS) in Automotive and Component companies registered in the Indonesia Stock Exchange (IDX) for the period of 2009-2014. The data used in this study are secondary data in the form of the company’s financial statements. The variables in this study are earnings management before and after IFRS implementation. The sampling method in this study was purposive sampling with a sample of 12 automotive and component companies on the Indonesia Stock Exchange. Discretionary accruals of Modified Jones Model is used to measure the earnings management. The analytical method used for hypothesis testing is Paired Sample T-test, a different test for two paired samples. The results of this study indicate that earnings management in the period after IFRS convergence was different than earnings management in the period before IFRS convergence in Automotive and Component companies. However, IFRS convergence has not guaranteed a decline in earnings management practices in Automotive and Component companies.  Keywords: Earnings Management, International Financial Reporting Standard, Discretionary Accrual

The evolution of stakeholder management practices in Australian mega construction projects

2018 ◽  
Vol 25 (6) ◽  
pp. 690-706 ◽  
Author(s):  
Rebecca Jing Yang ◽  
Sajani Jayasuriya ◽  
Chathuri Gunarathna ◽  
Mehrdad Arashpour ◽  
Xiaolong Xue ◽  
...  
Keyword(s):  
Stakeholder Engagement ◽  
Construction Projects ◽  
Management Practices ◽  
Stakeholder Management ◽  
Empirical Studies ◽  
Stakeholder Analysis ◽  
Secondary Data ◽  
Project Teams ◽  
Content Type ◽  
Project Objectives

Purpose The complicated nature of megaprojects requires appropriate analysis of multiple stakeholders to achieve project objectives and to accommodate stakeholder interests. During the last two decades, many stakeholder theories and empirical studies have sprouted. Although previous studies have contributed to the development of stakeholder theory, it seems that these theoretical advances have not been fully adopted and acknowledged in practices, especially in megaprojects. The purpose of this paper is to explore the evolution of stakeholder analysis and engagement practices adopted in the Australian megaprojects over the last two decades. Design/methodology/approach Four mega construction projects are described and analysed in this study. Secondary data were first assembled in order to get general knowledge of each case. Interviews were conducted with the project directors. Project documents were collected from the project teams and reviewed. Wherever the project information was unclear, e-mails were sent to the directors and the team members to confirm the details. Findings Project teams have started to apply snowball rolling and stakeholder attribute assessment methods to analyse stakeholders. However, there is still a way to adopt the “network” analysis perspective because the project teams are reluctant to use complicated tools which need specialists’ assistance. The stakeholder engagement practices have evolved to an extent where the project teams monitor the dynamics of stakeholders’ requirements. Projects teams have identified the importance of continuity to manage stakeholders in these massive projects. However, a structured method selection mechanism for stakeholder engagement has not been developed. Originality/value This study will help academics to understand the adoption progress and status of stakeholder management methods.

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