CORPORATE  GOVERNANCE DAN  MANAJEMEN LABA RIIL PERBANKAN ISLAM INDONESIA DAN MALAYSIA

The main objective of this research is to create good corporate governance that is able to restrictopportunistic REM. The specific objectives of this study are 1) to provide evidence of difference inthe practices of CG and REM in Indonesian and Malaysian Islamic banks,and 2) to provide empirical evidence of the influence of CG on the REM of Indonesian and Malaysian Islamic banks. The study was conducted on Indonesian and Malaysian Islamic banks from 2011 to 2016by using purposive samplingmethod. The research data is secondary data in the form of annual reports and financial reports originating from the Indonesian Banking Directory, the Indonesia Stock Exchange and the Malaysia Stock Exchange. The analysis method used to test the differences between CG and real earnings management is the Man Whitney test whilethe method used to test the effect of CG on the REM of Islamic Banks in Indonesia and Malaysia is the multiple regression analysiswithordinary least square. The results show that the practices of corporate governance in Indonesia and Malaysia have their own strengths and weaknesses. CG mechanism of Indonesia and Malaysia shows lower level in some parts and higher level in other parts. Malaysia’s REM islower than Indonesia’sREM through operating cash flow, investment profit sharing, and discretionary costs. The experimental results show that CG generally does not affect real earnings management and only the independent audit committee who is able to restrictreal earnings management through operating cash flows. Riset ini menguji hubungan antara corporate governance (CG) dan manajemen laba berdasar aktivitas riil atau disebut real earnings management (REM) bank-bank Islam di Indonesia dan Malaysia. Tujuan jangka panjang riset ini adalah terciptanya good corporate governace yang mampu membatasi REM oportunistik. Target khusus penelitian ini adalah 1) memberi bukti empiris perbedaan praktik CG dan REM bank Islam Indonesia dan Malaysia. 2) memberi bukti empiris pengaruh CG terhadap REM bank Islam Indonesia dan Malaysia. Metode penelitian menggunakan metode ilmiah - kuantitatif, dengan membangun satu atau lebih hipotesis berdasarkan pada suatu struktur atau kerangka teori dan kemudian menguji hipotesis-hipotesis tersebut secara empiris. Penelitian dilakukan pada bank Islam Indonesia dan Malaysia periode waktu 2011 sampai 2016. Metode pengambilan sampel secara purposive sampling. Data penelitian merupakan data sekunder berupa annual report dan laporan keuangan yang berasal dari Directory Perbankan Indonesia, Bursa Efek Indonesia dan Bursa Efek Malaysia. Teknik analisis untuk menguji perbedaan CG dan manajemen laba riil adalah uji beda Man Whitney, sedangkan untuk menguji pengaruh CG terhadap REM Bank Islam Indonesia dan Malaysia menggunakan analisis regresi berganda ordinary least square. Hasil menunjukkan bahwa praktik corporate governance Negara Indonesia dan Malaysia, masing masing memiliki kelebihan dan kelemahan. Mekanisme CG ada yang lebih rendah, maupun lebih tinggi antara Negara Indonesia dengan Malaysia. REM Malaysia lebih rendah signifikan dari pada Indonesia, baik melalui arus kas operasi, bagi hasil investasi, maupun biaya diskresioner. Hasil uji menunjukkan bahwa pada umumnya mekanisme CG tidak berpengaruh terhadap manajemen laba riil. Hanya Independensi komite audit yang mampu menekan manajemen laba riil melalui arus kas operasi.Keywords:Corporate governance, real earnings management, Islamic banking.

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CORPORATE GOVERNANCE DAN MANAJEMEN LABA RIIL PERBANKAN ISLAM INDONESIA DAN MALAYSIA

JMM UNRAM - MASTER OF MANAGEMENT JOURNAL ◽

10.29303/jmm.v7i4.332 ◽

2018 ◽

Vol 7 (4) ◽

Author(s):

Surifah Surifah ◽

M. Zubaedy Sy ◽

Nuryati Nuryati

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Audit Committee ◽

Stock Exchange ◽

Cash Flows ◽

Profit Sharing ◽

Least Square ◽

Real Earnings Management ◽

Annual Reports ◽

Islamic Banks

The main objective of this research is to create good corporate governance that is able to restrictopportunistic REM. The specific objectives of this study are 1) to provide evidence of difference inthe practices of CG and REM in Indonesian and Malaysian Islamic banks,and 2) to provide empirical evidence of the influence of CG on the REM of Indonesian and Malaysian Islamic banks. The study was conducted on Indonesian and Malaysian Islamic banks from 2011 to 2016by using purposive samplingmethod. The research data is secondary data in the form of annual reports and financial reports originating from the Indonesian Banking Directory, the Indonesia Stock Exchange and the Malaysia Stock Exchange. The analysis method used to test the differences between CG and real earnings management is the Man Whitney test whilethe method used to test the effect of CG on the REM of Islamic Banks in Indonesia and Malaysia is the multiple regression analysiswithordinary least square. The results show that the practices of corporate governance in Indonesia and Malaysia have their own strengths and weaknesses. CG mechanism of Indonesia and Malaysia shows lower level in some parts and higher level in other parts. Malaysia’s REM islower than Indonesia’sREM through operating cash flow, investment profit sharing, and discretionary costs. The experimental results show that CG generally does not affect real earnings management and only the independent audit committee who is able to restrictreal earnings management through operating cash flows. Riset ini menguji hubungan antara corporate governance (CG) dan manajemen laba berdasar aktivitas riil atau disebut real earnings management (REM) bank-bank Islam di Indonesia dan Malaysia. Tujuan jangka panjang riset ini adalah terciptanya good corporate governace yang mampu membatasi REM oportunistik. Target khusus penelitian ini adalah 1) memberi bukti empiris perbedaan praktik CG dan REM bank Islam Indonesia dan Malaysia. 2) memberi bukti empiris pengaruh CG terhadap REM bank Islam Indonesia dan Malaysia. Metode penelitian menggunakan metode ilmiah - kuantitatif, dengan membangun satu atau lebih hipotesis berdasarkan pada suatu struktur atau kerangka teori dan kemudian menguji hipotesis-hipotesis tersebut secara empiris. Penelitian dilakukan pada bank Islam Indonesia dan Malaysia periode waktu 2011 sampai 2016. Metode pengambilan sampel secara purposive sampling. Data penelitian merupakan data sekunder berupa annual report dan laporan keuangan yang berasal dari Directory Perbankan Indonesia, Bursa Efek Indonesia dan Bursa Efek Malaysia. Teknik analisis untuk menguji perbedaan CG dan manajemen laba riil adalah uji beda Man Whitney, sedangkan untuk menguji pengaruh CG terhadap REM Bank Islam Indonesia dan Malaysia menggunakan analisis regresi berganda ordinary least square. Hasil menunjukkan bahwa praktik corporate governance Negara Indonesia dan Malaysia, masing masing memiliki kelebihan dan kelemahan. Mekanisme CG ada yang lebih rendah, maupun lebih tinggi antara Negara Indonesia dengan Malaysia. REM Malaysia lebih rendah signifikan dari pada Indonesia, baik melalui arus kas operasi, bagi hasil investasi, maupun biaya diskresioner. Hasil uji menunjukkan bahwa pada umumnya mekanisme CG tidak berpengaruh terhadap manajemen laba riil. Hanya Independensi komite audit yang mampu menekan manajemen laba riil melalui arus kas operasi.Keywords:Corporate governance, real earnings management, Islamic banking. How to cite:Sy Zubaedy, M., Nuryati, Surifah (2018). Corporate Governance Dan Manajemen Laba Riil Perbankan Islam Indonesia Dan Malaysia. JMM UNRAM, 7(4), 33 - 46

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The impact of audit committee on real earnings management: Evidence from Netherlands

Corporate Governance and Sustainability Review ◽

10.22495/cgsrv4i1p3 ◽

2020 ◽

Vol 4 (1) ◽

pp. 33-46 ◽

Cited By ~ 3

Author(s):

Sana Masmoudi Mardessi ◽

Yosra Makni Fourati

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Audit Committee ◽

Stock Exchange ◽

Gender Diversity ◽

Real Earnings Management ◽

Financial Expertise ◽

Relevant Topic ◽

And Gender ◽

The Impact

This paper aims to examine the effect of the characteristics of an audit committee on real earnings management in the Dutch context. Our sample is composed of 80 non-financial companies listed on the Amsterdam Stock Exchange during the period between 2010 and 2017. Four proxies are used to measure audit committee characteristics, namely, audit committee independence, financial expertise, gender diversity, and audit committee meetings. To test our hypotheses, we use a regression model to identify the influence of a set of audit committee characteristics on real earnings management after controlling for firm audit committee size, leverage, size, loss, growth and board size. Our analyses provide evidence that audit committee independence and gender diversity constrain real earnings management. Our findings also suggest that audit committee financial expertise reduces to some extent the likelihood of engaging in real earnings management. To the best of our knowledge, the Dutch context is not yet explored especially following the issue of the long-awaited new Dutch Corporate Governance Code in 2016 which has been updated for a long period in 2008. Therefore, corporate governance is a relevant topic in the Netherlands. This study contributes geographically to the Audit Committee and earnings management literature that examines another possible method, specifically, real earnings management.

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Pengaruh Corporate Governance, Profitabilitas, Leverage, dan Kualitas Audit Terhadap Real Earnings Management

Jurnal Muara Ilmu Ekonomi dan Bisnis ◽

10.24912/jmieb.v2i1.1577 ◽

2018 ◽

Vol 2 (1) ◽

pp. 35

Author(s):

Clarissa Maya Devi

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Audit Committee ◽

Audit Quality ◽

Stock Exchange ◽

Total Sample ◽

Real Earnings Management ◽

Manufacturing Company ◽

Corporate Governace

Abstract :The purpose of this study is to examine the affects of corporate governace, profitability, leverage and audit quality on real earnings management in manufacturing company listed in Indonesia Stock Exchange during period 2014 until 2016. The total sample of this research was 63 manufacture companies. The result of this research shows that profitability and audit quality has positive and significant affects on real earnings management, but corporate governance and leverage has no effect on real earnings management. Keywords :Real Earnings Management, Corporate Governance, Audit Committee Meetings, Audit Committee of Accounting Experts, Profitability, Leverage, Audit Quality.

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Pengaruh Independensi dan Keahlian Komite Audit Terhadap Manajemen Laba Riil dengan Kualitas Audit Sebagai Variabel Moderasi

Jurnal Akuntansi Keuangan dan Manajemen ◽

10.35912/jakman.v2i4.564 ◽

2021 ◽

Vol 2 (4) ◽

pp. 345-358

Author(s):

Ditta Dwi Astuti ◽

◽

Lidya Primta Surbakti ◽

Aniek Wijayanti ◽

◽

...

Keyword(s):

Earnings Management ◽

Audit Committee ◽

Audit Quality ◽

Stock Exchange ◽

Secondary Data ◽

Production Costs ◽

Real Earnings Management ◽

Annual Reports ◽

Panel Data Regression ◽

Negative Effect

Abstract Purpose: This study aimed to analyze the influence of the audit committee's independence and expertise on real earnings management by using audit quality as the moderating variable and firm size, leverage, and profitability as control variables. Research Methodology: Real earnings management was processed by Roychowdhury’s model and it used the abnormal value of operating cash flow, discretionary expenses, and production costs. This study used secondary data from annual reports of non-financial companies listed on the Indonesia Stock Exchange for the period 2017-2019 and the total was 516 companies. This study used panel data regression and was processed by Stata. Results: This study proves that audit committee independence and leverage have a significant negative effect on real earnings management through discretionary expenses and audit quality cannot moderate the relationship between audit committee independence and audit committee expertise on real earnings management. Limitation: The study used audit quality as moderating variable. However, the results cannot prove that audit quality is able to affect real earnings management. Contribution: The results obtained can be used for investors' and creditors' consideration when making investment or loans decisions and can be references for further research.

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Can corporate governance mechanisms reduce earnings-management practices in Islamic banks?

Journal of Islamic Accounting and Business Research ◽

10.1108/jiabr-04-2019-0081 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Virasty Fitri ◽

Dodik Siswantoro

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Audit Committee ◽

Management Practices ◽

Stock Exchange ◽

Islamic Banks ◽

Governance Mechanisms ◽

Loan Loss ◽

Content Type ◽

Corporate Governance Mechanisms

Purpose This study aims to provide empirical evidence on the role of corporate governance mechanisms in reducing earnings-management practices in Islamic banks in Asia. Design/methodology/approach This study used 28 Islamic banks in Asia, which were listed on the stock exchange from 2013–2017. The research method used quantitative regression with data on the characteristics of Islamic banks taken from the websites of each bank. This study used discretionary loan loss provision as a proxy for measuring earnings management. Findings The results show that only the audit committee size has a significantly negative effect on earnings management. An independent audit committee has a negative, but not significant, effect. The difference expectation signs cannot be interpreted further. Research limitations/implications Only a few components of corporate governance were tested in this study. Therefore, it is expected that future studies will include more components. Practical implications In general, the components of corporate governance that include the characteristics of the board of directors and the audit committee have a varied effect on reducing the earnings-management practices in Islamic banks, except audit committee size. In practice, audit committee size should have an important role in earning management reduces. Originality/value This may be the first paper that studies the effect of corporate governance on earnings management in Islamic banks in Asia.

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PENGARUH FINANCIAL DISTRESS, REAL EARNINGS MANAGEMENT DAN CORPORATE GOVERNANCE TERHADAP TAX AGGRESSIVENESS

JOURNAL OF APPLIED BUSINESS ADMINISTRATION ◽

10.30871/jaba.v1i2.616 ◽

2018 ◽

Vol 1 (2) ◽

pp. 163-182

Author(s):

Sholehudin Adi Nugroho ◽

Amrie Firmansyah

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Financial Distress ◽

Audit Committee ◽

Opposite Effect ◽

Stock Exchange ◽

Real Earnings Management ◽

Manufacturing Companies ◽

Tax Aggressiveness ◽

Approach Method

This study is aimed to examine the effect of financial distress, real earnings management, and corporate governanceon tax aggressiveness. Using samples from manufacturing companies listed on the Indonesia Stock Exchange in the period 2011 to 2015, the data will be examined with fixed effect approach method. The results of this study indicate that financial distress does not affect on tax aggressiveness. While from real earnings management variables, only through manipulation of sales as which affects positive significantly on tax aggressiveness. On the contrary, manipulation of the production and manipulation of discretionary expenses precisely give the opposite effect. In addition, corporate governance consists of the audit committee and the percentage of institutional ownership can reduce tax aggressiveness, meanwhile the third measure (the percentage of independent commissioners) shows the opposite result..

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Corporate Governance, Earnings Management, and Economic Value Added Indonesian Evidence

KnE Social Sciences ◽

10.18502/kss.v3i26.5373 ◽

2019 ◽

Author(s):

Krismiaji . ◽

Maria Purwantini ◽

Adi Prabhata

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Economic Value ◽

Value Added ◽

Cash Flows ◽

Least Square ◽

Real Earnings Management ◽

Fiscal Year ◽

Economic Value Added ◽

Negative Effect

This paper describes the research which investigates the effect of earnings management and corporate governance (CG) on economic value added (EVA) in companies listed on the Indonesia Stock Exchange for the ﬁscal year ending 31 December 2015 to 2017. Earnings management used in this study is accrual earnings management (MLA) as measured by the Modiﬁed Jones Model and real earnings management (MLR) as measured by management earnings operating cash ﬂows. CG is measured by the CG index. Data is obtained by purposive sampling process and comesfromsecondarydatabothfromtheIDXandfromthewebsitesofeachcompany. The research hypothesis was tested using generalized-least square (GLS). The results showed that accrual earnings management had a positive effect on EVA while real earnings management had a negative effect on EVA. The results also show that CG has a negative effect on EVA if tested together with MLA, but CG does not affect EVA if tested together with MLR. This research is expected to contribute to the existing literature by completing and enriching ﬁndings on the effect of earnings management and corporate governance on EVA.

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The Effectiveness of Corporate Governance in Constraining Earnings Management in Pakistan

THE LAHORE JOURNAL OF ECONOMICS ◽

10.35536/lje.2015.v20.i1.a5 ◽

2015 ◽

Vol 20 (1) ◽

pp. 135-155 ◽

Cited By ~ 3

Author(s):

Aysha S. Latif ◽

Fahad Abdullah

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Stock Prices ◽

Audit Committee ◽

Management Practices ◽

Stock Exchange ◽

Annual Reports ◽

Management Incentives ◽

Accurate Picture ◽

Growth Firms

Although firms’ annual reports are supposed to provide an unbiased and accurate picture of their financial position, managers may be induced to engage in earnings management in order to circumvent expectations. Such incentives can take the shape of stock prices, management incentives, or debt covenants. The purpose of this study is to investigate the effectiveness of three attributes of corporate governance in constraining earnings management practices. These include board characteristics, audit committee characteristics, and ownership structure. Based on a sample of 120 nonfinancial firms listed on the Karachi Stock Exchange during 2003–12, we find that audit committee independence is negatively associated with earnings management, while CEO duality and institutional shareholding is positively associated with earnings management. Moreover, the effectiveness of governance mechanisms in constraining earnings management practices differs across high- and low-growth firms.

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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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