Growth Illusion in The Indonesia Stock Exchange: Relationship Between Earnings Management and Firm Value

This study aims to determine the effect of simultaneous and partial ownership structure and earnings management on firm value in the Consumer Goods Industry Sector Companies that are listed on the Indonesia Stock Exchange in 2014. The method used in this study is the census method. The population studied was 32 companies in the Consumer Goods Industry Sector that were listed on the Indonesia Stock Exchange in 2014. The data collected were secondary data. Analysis of the data in this study used path analysis using SPSS V. 24. The results showed that the ownership structure and earnings management, simultaneously, had a significant effect on the value of the company in the Consumer Goods Industry Sector Companies that were listed on the Indonesia Stock Exchange in 2014. The ownership structure, partially, has no significant effect on the value of the company in the Consumer Goods Industry Sector Companies listed on the Indonesia Stock Exchange in 2014. Earnings management, partially, has a significant effect on the firm value of the Consumer Goods Industry Sector Companies that are listed on the Exchange Indonesian Securities in 2014, and ownership structure does not significantly influence earnings management in the Consumer Goods Industry Sector Companies that are listed on the Indonesia Stock Exchange in 2014. Keywords: ownership structure, earnings management, company value

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Examining the Factors Affecting Firm Values : The Case of Listed Manufacturing Companies In Indonesia

Journal of Accounting Research, Organization and Economics ◽

10.24815/jaroe.v3i1.15532 ◽

2020 ◽

Vol 3 (1) ◽

pp. 62-72

Author(s):

Erika Diana

Keyword(s):

Earnings Management ◽

Firm Value ◽

Stock Exchange ◽

Annual Reports ◽

Company Size ◽

Cash Holding ◽

Manufacturing Companies ◽

Financial Leverage ◽

Factors Affecting ◽

Panel Data Regression

Objective – This study aims to examine the effect of cash holding, earnings management, profitability, company size, and financial leverage on firm value in manufacturing companies listed on the Indonesia Stock Exchange in 2016-2018. Design/methodology – This study used hypothesis testing. Samples were selected using purposive sampling as many as 82 companies. Data obtained from annual reports and analyzed using panel data regression analysis method. Results – The results showed that cash holding, earnings management, and profitability as inde-pendent variables, company size and financial leverage as control variables jointly affect the value of the company. Partially, earnings management has no effect on firm value, while cash holding, profitability, company size, and financial leverage have an effect on firm value.

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PENGARUH LEVERAGE, MANAJEMEN LABA, DAN STRUKTUR KEPEMILIKAN TERHADAP NILAI PERUSAHAAN PADA PERUSAHAAN BUMN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2008 - 2012

Jurnal Akuntansi ◽

10.24964/ja.v1i2.15 ◽

2016 ◽

Vol 1 (2) ◽

Cited By ~ 1

Author(s):

Fajar Kusworo

Keyword(s):

Earnings Management ◽

Ownership Structure ◽

Firm Value ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Significant Positive Effect ◽

Public Ownership ◽

Government Ownership ◽

Simultaneous Testing ◽

Positive Effect

The purpose of this research was to determine the effect of leverage , earnings management , and ownership structure on firm value in state-owned companies . Based on a population of 18 state-owned companies listed on the Stock Exchange was taken 10 stateowned companies in 2008 to 2012 as the samples in this study according to the criteria of the study , a total of 50 years as a firm observational data . At the stage of data processing are affected data outliers firm by 2 years so the number of samples used in this study for 5 years amounted to 48 firm year . Data analysis was performed using linear regression analysis using SPSS for Windows 16.00. Simultaneous testing results show that leverage , earnings management , government ownership , and public ownership and a significant positive effect on firm value . Result partial test indicates that earnings management does not affect the value of the company , while leverage , government ownership , and public ownership negatively affect the value of the company .

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Pengaruh Manajemen Laba Pada Agresivitas Pajak dan Implikasinya Terhadap Nilai Perusahaan

E-Jurnal Akuntansi ◽

10.24843/eja.2019.v26.i01.p22 ◽

2019 ◽

pp. 591 ◽

Cited By ~ 1

Author(s):

Made Dika Diatmika ◽

I Made Sukartha

Keyword(s):

Earnings Management ◽

Path Analysis ◽

Firm Value ◽

Stock Exchange ◽

Positive Contribution ◽

Tax Aggressiveness ◽

Company Value ◽

Analysis Technique ◽

Negative Effect ◽

The Government

This study aims to determine the effect of earnings management on tax aggressiveness and its implications for firm value. This research was conducted at mining companies listed on the Indonesia Stock Exchange in 2012-2017. The data analysis technique used is path analysis. Based on the results of path analysis, it is known that earnings management with decreasing income has no effect on tax aggressiveness. Tax aggressiveness has a negative effect on firm value. Earnings management with income decreasing has a negative effect on firm value. Earnings management with decreasing income does not influence indirectly on firm value through tax aggressiveness. The implication of this research theoretically is supporting agency theory and signal theory while practically this research can provide a positive contribution to all parties, especially companies, the main users of financial statements, and also the government. Keywords: company value, earnings management, tax aggressiveness

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Pengaruh Manjemen Laba dan Tax Avoidance Terhadap Nilai Perusahaan (Studi Empiris pada Perusahaan Perbankan yang Terdaftar di Bursa Efek Indonesia Tahun 2014-2018)

Paediatrica Indonesiana ◽

10.24036/wra.v8i1.109054 ◽

2020 ◽

Vol 8 (1) ◽

pp. 1

Author(s):

Chindy Annisa Violeta ◽

Vanica Serly

Keyword(s):

Earnings Management ◽

Firm Value ◽

Sampling Method ◽

Stock Exchange ◽

Tax Avoidance ◽

Total Sample ◽

Multiple Regression Model ◽

Future Research ◽

Negative Effect ◽

Collection Methods

The puspose of this study is to determine the effect of earnings management and tax avoidance on firm value. This type of research is quantitative. The study was conducted on banking companies listed on the Indonesia Stock Exchange in 2014-2018, with a total sample of 135 samples using a purposive sampling method. Data collection methods are documentary studies. The analysis was done by using multiple regression model. Earnings management is measured using discretionary accruals that are calculated using the performance matched model and tax avoidance is measured using an effective tax ratio (ETR). The results of this study indicate that (1) earnings management has a positive but not significant effect on firm value. (2) Tax avoidance has a significant negative effect on firm value. Recommendations for futher research are expected to expand the object of research becouse in this study only examines banking companies. In addition, future research can use other models as a measurement of earnings management and look for other independent variables if you want to do the same research.Keywords: Earnings Management; Tax Avoidance; Firm Value.

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Earnings management, directors’ discretions and information content affecting discretionary accruals of Malaysian publicly listed companies

Corporate Ownership and Control ◽

10.22495/cocv11i4c7p5 ◽

2014 ◽

Vol 11 (4) ◽

pp. 625-634

Author(s):

Yap Voon Choong ◽

Kok Thim Chan ◽

John Stanley Murugeshu

Keyword(s):

Earnings Management ◽

Firm Value ◽

Stock Exchange ◽

Explanatory Power ◽

Discretionary Accruals ◽

Agency Cost ◽

Share Price ◽

Future Earnings ◽

Financial Variables ◽

Political Costs

Managers have reporting discretion permitted by accounting standards over a combination of earnings management choices. The objective of this study is to identify the types of discretionary accounting choices that are indicative of earnings management. Based on a sample of 947 companies listed on the Malaysian stock exchange, the results indicate that a number of firm specific financial variables that proxy for agency cost, political costs and information asymmetry capture discretionary accruals behaviour. This study also seeks to examine the explanatory power of the earnings management in predicting future earnings and firm value. The results indicate that discretionary accruals can improve the informativeness of a firm’s current and past earnings when predicting future earnings and share price

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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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Analysis of The Effect of Profitability and Liquidity on Income Management Which Impact on Company Value in Soe Banks Registered on Indonesia Stock Exchange Period 2009-2019

Syntax Literate ; Jurnal Ilmiah Indonesia ◽

10.36418/syntax-literate.v6i3.2307 ◽

2021 ◽

Vol 6 (3) ◽

pp. 1297

Author(s):

Masno Marjohan

Keyword(s):

Earnings Management ◽

Firm Value ◽

Stock Exchange ◽

Return On Assets ◽

Company Value ◽

Panel Data Regression ◽

Analysis Technique ◽

Data Regression ◽

Comprehensive Picture ◽

The Impact

This study aims to analyze, test the effect of profitability as measured by Return On Assets, liquidity as measured by LDR on earnings management, and the impact of earnings management on firm value in state-owned tire companies listed on the Indonesia Stock Exchange from 2009 to 2019. Total population This research is 4 state-owned bank companies so that the entire population is sampled with a period of 10 years from 2009-2019. The analysis technique used in this research is panel data regression to obtain a comprehensive picture of the relationship between one variable and another. The results of the research partially show that ROA, LDR Profitability has no effect on Earning Management, Profitability and Liquidity simultaneously have an effect on Earnings Management, and show that earnings management affects Firm Value.

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Accrual Earnings Management and Real Earnings Management: Increase or Destroy Firm Value?

International Journal of Multicultural and Multireligious Understanding ◽

10.18415/ijmmu.v6i2.551 ◽

2019 ◽

Vol 6 (2) ◽

pp. 8 ◽

Cited By ~ 1

Author(s):

I Putu Edi Darmawan ◽

Sutrisno T ◽

Endang Mardiati

Keyword(s):

Linear Regression ◽

Earnings Management ◽

Multiple Linear Regression ◽

Firm Value ◽

Stock Exchange ◽

Linear Regression Analysis ◽

Multiple Linear Regression Analysis ◽

Real Earnings Management ◽

Analysis Tool ◽

Negative Effect

This study aims to investigate empirically the effect of accrual earnings management and real earnings management on firm value. The analysis technique used is multiple linear regression analysis. The research samples were manufacturing firms listed on the Indonesia Stock Exchange during the period of 2013 to 2017. The analysis tool used is Multiple Linear Regression. The test results showed that accrual earnings management measured by discretionary accruals did not affect on value of the firm. Real earnings management was found to have a negative effect on firm value.

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Pengaruh Pengungkapan Corporate Social Responsibility Pada Nilai Perusahaan Dengan Manajemen Laba Sebagai Variabel Moderasi

Jurnal Ilmiah Akuntansi dan Bisnis ◽

10.24843/jiab.2019.v14.i01.p06 ◽

2019 ◽

Author(s):

Kalvarina Sabatini ◽

I Putu Sudana

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Earnings Management ◽

Agency Theory ◽

Firm Value ◽

Stock Exchange ◽

Sampling Technique ◽

Corporate Social Responsibility Disclosure ◽

Analysis Technique ◽

Corporate Social

The study aims to determine the effect of Corporate Social Responsibility disclosure on firm value and to determine earnings management moderate the effect of Corporate Social Responsibility disclosure on firm value. Agency theory used in this research as the grand theory. The population in this study are companies listed in the Business Index 27 in 2014–2016, which are listed on Indonesia Stock Exchange. Sample in this study was taken using purposive sampling technique. The analysis technique used in this study is moderated regression analysis technique. The results show that Corporate Social Responsibility has negative and significant effect on firm value. In addition earnings management has no significant effect on Corporate Social Responsibility disclosure on firm value. Theoretical implication shows that these results are in line with the signaling theory but contradictory with agency theory. On the other hand, practical implications of this research can be taken into consideration for potential investors and investors in making decisions by looking at CSR information which disclosed by the company. Keywords: CSR, earnings management, firm value

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