scholarly journals Earning management practices in Islamic banking in Indonesia

2020 ◽  
Vol 5 (01) ◽  
pp. 9
Author(s):  
Siti Chanifah ◽  
Hamdani . ◽  
Mutiara Wiedyaningtias
Keyword(s):  
Earnings Management ◽  
Management Practices ◽  
Banking Sector ◽  
Stock Exchange ◽  
Descriptive Analysis ◽  
Value Added ◽  
Discretionary Accruals ◽  
Islamic Banking ◽  
Analysis Technique ◽  
Quantitative Descriptive

This study discusses to study earnings management practices in Islamic banking which are listed on the Indonesia Stock Exchange for the 2012-2016 period. Research using quantitative descriptive. The population in this study is the Islamic banking sector in Indonesia. Research samples at 11 Sharia Commercial Banks (BUS) reported on the Indonesia Stock Exchange. The data analysis technique used is descriptive analysis, with earnings management calculations using the Friedlan Model. The variable analyzed is earnings management using discretionary accruals. The results of this study show how earnings management practices occur in 11 Islamic banks in Indonesia. Value-added positive discretionary accruals indicate that there are earnings management practices by increasing earnings or increasing revenue and negative value discretionary accruals values indicate how earnings management practices by decreasing earnings or income decreases. Keywords: Earnings Management, Discretionary Accruals, Islamic Banking

scholarly journals PENGARUH LIKUIDITAS, UKURAN PERUSAHAAN DAN PROFITABILITAS TERHADAP NILAI PERUSAHAAN PADA PERUSAHAAN SUB SEKTOR KERAMIK PORSELIN DAN KACA YANG TERDAFTAR DI BURSA EFEK INDONESIA

2019 ◽  
Vol 6 (2) ◽  
pp. 9-15
Author(s):  
Jenny Frida Br Nainggolan ◽  
Yansen Siahaan ◽  
Jubi Jubi ◽  
Ady Inrawan
Keyword(s):  
Firm Value ◽  
Stock Exchange ◽  
Descriptive Analysis ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Company Size ◽  
Quantitative Descriptive Analysis ◽  
Average Value ◽  
Analysis Technique ◽  
Quantitative Descriptive

The purpose of this study is 1. To determine the liquidity, company size, profitability and value of the company in the Ceramic, Porcelain and Glass Sub-Sector Companies listed on the Indonesia Stock Exchange. 2. To determine the effect of liquidity, company size, profitability and firm value on the Ceramic, Porcelain and Glass Sub-Sector Companies listed on the Indonesia Stock Exchange both simultaneously and partially. This research was conducted using quantitative descriptive analysis and quantitative descriptive analysis. The object of the research is the Ceramic, Porcelain and Glass Sub-Sector Company listed on the Indonesia Stock Exchange. Data collection is done by documentation method. The analysis technique used is the classical assumption test, multiple linear regression analysis correlation coefficient, determination coefficient, hypothesis testing. This analysis was carried out using the IBM SPSS Statistic Program version 21.0.The results of this research can be concluded as follows: 1. Overall average value of Current Ratio (CR) fluctuates tends to increase 2. overall the average value of size has fluctuated tends to increase. 3. overall the average value of Return on Assets (ROA) fluctuates but tends to decrease. 4. F test found that simultaneously the magnitude of Fcount> Ftable of H0 is rejected, meaning that liquidity, firm size, and profitability have no significant effect on the value of the company in the Ceramic, Porcelain and Glass Sub-Sector Company listed on the Indonesia Stock Exchange in 2013-2017 .

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 The effect of accrual earnings management, using Khotari Model Approach, on the performance of manufacturing companies listed in Indonesia Stock Exchange

2016 ◽  
Vol 5 (1) ◽  
pp. 11
Author(s):  
Mochamad Handoko ◽  
Nurmala Ahmar
Keyword(s):  
Earnings Management ◽  
Sampling Method ◽  
Stock Exchange ◽  
Descriptive Analysis ◽  
Sampling Technique ◽  
Company Performance ◽  
Manufacturing Companies ◽  
Return On Assets ◽  
Analysis Technique ◽  
Model Approach

The purpose of this study is (1) to analyze the effect of accrual earnings management on the company performance measured with Return On Assets (ROA), (2) to analyze the effect of accrual earnings management on the company performance measured with Tobins Q. This study uses the data of manufacturing companies listed in Indonesia Stock Exchange. The sampling technique used is purposive sampling method. The researcher uses Khotari Model to calculate discretionary accruals as the proxy of earn-ing management, while the company performance in this study is proxied by the indi-cators of Return on Assets (ROA) and Tobins Q. The analysis technique used is descriptive analysis and simple linear regression. The results of this study prove that accrual earnings management affects ROA and Tobins Q. This study also proves that there is a decline in market value when the earnings management is performed.

scholarly journals Demystifying Earnings Management Through Accruals Management: An Indian Corporate Study

2012 ◽  
Vol 37 (1) ◽  
pp. 49-56 ◽  
Author(s):  
Sandeep Goel
Keyword(s):  
Earnings Management ◽  
Management Practices ◽  
Value Added ◽  
Discretionary Accruals ◽  
High Price ◽  
Earnings Manipulation ◽  
Net Income ◽  
Bottom Line ◽  
Earnings Growth ◽  
Management Issues

Earnings, the “bottom line” or “net income,” are the single-most important item in financial statements. They indicate the extent of company's value-added activities. They help in resource mobilization in capital markets. On account of the said importance of earnings, the management of the company is always interested in their reporting. This is where management exercises choices for reporting of earnings. The recent Satyam saga or Enron in the past are prime examples of misuse of flexibility in choosing the accounting methods and treatments by the management. Earnings management occurs when management uses discretion in financial reporting and in structuring transactions with the objective of securing private gains. Earnings management issues related to financial disclosure and reporting are increasingly relevant to the multitude of firm stakeholders. In the wake of these manipulative corporate practices, investors and managers are trying to understand whether there is widespread Enron-like manipulation of financial results among corporations or whether these scandals are just an aberration. A related issue for financial analysts, investors, and corporate executives is how to distinguish between earnings manipulation that ultimately proves to be fraudulent and the day-to-day struggles of managers to meet pre-determined targets by using various accounting flexibilities. An understanding of the financial statement effects of financial engineering transactions will thus help managers try to avoid future Satyams and Enrons and help to improve the climate for a common investor. A very important dimension of earnings management is that earnings manipulation is usually not the result of an intentional fraud, but the culmination of a series of aggressive interpretations of the accounting rules and application of aggressive operating activities. The end result is misstatement of the financial results by the people involved and realization by them when it gets too late. The typical case of earnings manipulation begins with a track record of success. The company or division has posted significant sales and earnings growth over recent years. Their stock price trades at high price earnings multiple but unfortunately, it is becoming more difficult for the company to maintain the sales and earnings growth as per the analysts� expectations. The management goes for creative accounting practices to manage their earnings. This study analyses the earnings management practices in corporate enterprises in India by examining the magnitude of discretionary accruals. DeAngelo Model has been used for calculating discretionary accruals in regard to potential earnings management for the study. It also explores earnings management issues with respect to industry classification in these enterprises. The sample was drawn from the top 25 listed profit-making companies for the year 2007. The period chosen for the study was 2002–03 to 2007–08. An examination of the units shows a definite presence of accrual management in the sample companies. Most of the units have been found to be exercising income-increasing discretionary accruals. The earnings creativity is further strengthened by industry parameters among the units.

scholarly journals Does Corporate Governance and other Factors Influence Earnings Management? A Study on Indonesia’s Banking Sector

2022 ◽  
Vol 10 (1) ◽  
pp. 11-26
Author(s):  
Sigit Handoyo ◽  
Inneke Tri Tri Kusumaningrum
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Management Practices ◽  
Banking Sector ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Research Data ◽  
Financial Data ◽  
Good Corporate Governance ◽  
Conventional Banks

The issue of misreporting financial data and earnings management has become more prominent in recent years. Several studies have been conducted determining the influences of the mechanisms of corporate governance and earnings management in various countries. In this study, it was proven that the existence of a good corporate governance (GCG) mechanism did not suppress earnings management practices in the banking sector industry in Indonesia. However, another factor, dividend policy, can prove effective in suppressing earnings management. The measurement of earnings management in this study was carried out using the Modified Jones model with a population of 43 conventional banks from which research data were taken using a purposive sampling technique sourced from the Indonesia Stock Exchange (IDX). The analysis was carried out using multiple linear regression. The implication of this research is that the implementation of good corporate governance by an entity must be considered given that earnings management practices in Indonesia are still relatively high.

scholarly journals Pengaruh Dana Pihak Ketiga dan Non-Performing Loan terhadap Penyaluran Kredit pada Bank yang Terdaftar di BEI

2020 ◽  
Vol 1 (1) ◽  
pp. 163-173
Author(s):  
Popy Sandra Tesalonica Hutahaean ◽  
Diharpi Herli Setyowati ◽  
Endang Hatma Juniwati
Keyword(s):  
Banking Sector ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Multiple Linear Regression Analysis ◽  
Third Party ◽  
Statistical Tool ◽  
Financial Reports ◽  
Analysis Technique ◽  
Quantitative Descriptive

The purpose in this research was to find the effect of third party funds and non-performing loans on the amount of lending to banking sector listed on the Indonesia Stock Exchange for the period 2014 to 2018. The research method used is quantitative descriptive method. The data used are secondary data in the form of annual financial reports, and the data analysis technique uses multiple linear regression analysis. The data processing in this study used a statistical tool, namely E-views 9. The results of this study indicate that partially third party funds have a positive and significant effect on the amount of lending and non-performing loans have a negative and significant effect on the amount of credit disbursement. Simultaneously or together, third party funds and non-performing loans have a significant effect on the amount of lending.

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.

scholarly journals PENGARUH PERENCANAAN PAJAK TERHADAP MANAJEMEN LABA PADA PERUSAHAAN NONMANUFAKTUR YANG TERDAFTAR DI BURSA EFEK INDONESIA

MODUS ◽  
2016 ◽  
Vol 26 (1) ◽  
pp. 33
Author(s):  
Ferry Aditama ◽  
Anna Purwaningsih
Keyword(s):  
Data Analysis ◽  
Earnings Management ◽  
Management Practices ◽  
Stock Exchange ◽  
Descriptive Analysis ◽  
Tax Planning ◽  
Manufacturing Companies ◽  
Exchange Effect ◽  
Tax Rate ◽  
Single Tax

This study aim to assess and obtain empirical evidence about the efect of tax planning on earnings management practices seteleh the change (decrease) in single tax rate in 2010 on the non-manufacturing companies listed on the Indonesia Stock Exchange. Effect of tax planning on earnings management is also associated with the phenomenon of change (decrease) in tax rates that began in the 2010 tax year. Tis study used a sample of 77 non-manufacturing companies listed in Indonesia Stock Exchange in 2009-2012. This research using descriptive statistics and simple linear regression for data analysis. The dependent variable in this study is earnings management, whereas the independent variable in this study is tax planning. Based on the results of data analysis, it appears that it was not tax planning manajamen positive efect on earnings in non-manufacturing companies listed on the Stock Exchange. However, the results of the descriptive analysis showed that 77 companies sampled in this study do tax planning in a way to avoid a decrease in profit.Keywords : earning management, earning threshold, tax planning, taxation.

scholarly journals Earnings Management di Indonesia: Studi Empiris pada Periode Sebelum dan Setelah Terlaksananya Program Tax Amnesty

2019 ◽  
Vol 2 (2) ◽  
Author(s):  
Raden Arief Wibowo
Keyword(s):  
Earnings Management ◽  
Management Practices ◽  
Stock Exchange ◽  
Management Practice ◽  
Discretionary Accruals ◽  
Great Effort ◽  
Absolute Value ◽  
Tax Amnesty ◽  
The Absolute ◽  
The Difference

This study aims to examine earnings management practice in the Indonesian companies, before, during, and after the tax amnesty program, and compare it through testing the difference in the absolute value of discretionary accruals before, during, and after the tax amnesty program. To conduct this analysis, this study uses 42 samples of non-financial companies listed on the Indonesia Stock Exchange (IDX) from 2015 to 2018. Data from all company samples are arranged in the form of Discretionary Accruals, Non-Discretionary Accruals, and Absolute Discretionary Accruals. The results indicate that there are earnings management practices before the tax amnesty program, and it is greater during the tax amnesty, and smaller after the tax amnesty. Based on the results of different tests, this study also shows that there are differences in the value of Absolute Discretionary Accruals in the tax amnesty program (AbsPre) and Absolute Discretionary Accruals after the tax amnesty program (AbsPost), so the hypothesis states that there is difference between earnings management before the tax amnesty program and after the tax amnesty program, can be accepted. In addition, the amount of Absolute Discretionary Accruals before the tax amnesty program (AbsPre) which tends to be higher 68.37% or almost 70%, shows that there is a great effort made by the management of the company in order to make the company looks outperformed to the investors.

Sign in / Sign up

Export Citation Format

Share Document