scholarly journals FACTORS AFFECTING REAL EARNINGS MANAGEMENT

2020 ◽  
Vol 6 (2) ◽  
pp. 47-57
Author(s):  
Veronica Prayitno
Keyword(s):  
Size Effect ◽  
Earnings Management ◽  
Effect Size ◽  
The Other ◽  
Real Earnings Management ◽  
Growth Effect ◽  
Liquidity Effect ◽  
Board Size ◽  
Equity Ratio ◽  
Asset Sale

The purpose of this research is to identify the influence of earnings change, debt/equity ratio, liquidity effect, growth effect, size effect, asset sale level, return on asset, market to book ratio, and board size to real earnings management. The other purpose of this research was to compare with the results of the previous research. This research used non-financial companies listed in Indonesia Stock Exchange (IDX) during the research period 2014 until 2017. Samples were collected using purposive sampling method, where 93 companies fulfill the criteria. Multiple linear regressions and hypothesis testing are used as the data analysis method in this research. The results of this research show that four variables: earnings change, debt/equity ratio, return on asset and market to book ratio statistically have effect on real earnings management, while the other five variables: liquidity effect, growth effect, size effect, asset sale level and board size statistically do not have effect on real earnings management of listed non-financial firms in Indonesia.

scholarly journals Effects of Board Size, Board Composition and Dividend Policy on Real Earnings Management in the Jordanian Listed Industrial Firms

2020 ◽  
Vol 11 (4) ◽  
pp. 195
Author(s):  
Yousef Shahwan ◽  
Tareq Hammad Almubaydeen
Keyword(s):  
Earnings Management ◽  
Dividend Policy ◽  
Structural Model ◽  
Negative Impact ◽  
Industrial Sector ◽  
Real Earnings Management ◽  
P Value ◽  
Board Composition ◽  
Board Size ◽  
The Impact

Earning manipulation has been a normal transaction among the global businesses, in which business organization sees it as beneficial, thereby turning black eyes to its negative impact on the general economy. This study aimed at examining the impact of board size, Board composition and dividend policy on real earnings management in the listed Jordanian industries. 8 years data (2010 to 2018) was extracted from the audited financial reports of the selected firms. Data was analyzed using Structural Model via AMOS version 26 and SPSS version 21. The findings revealed a positive and significant effect between board size, board composition and real earning management at p-value<0.05 and 0.001 (two-tailed) respectively. While negative of dividend policy on REM was recorded at p-value>0.05 (two-tailed). This study has immensely contributed towards bridging the gap in the existing knowledge as it documented a new finding. The benefits of these findings cross over the managers, shareholders, board of directors, investors, the Jordanian government and all other relevant institute for the buildup of the healthiest industrial sector and better economy.

scholarly journals Impacts of financial distress on real and accrual earnings management

2018 ◽  
Vol 22 (2) ◽  
pp. 222
Author(s):  
Danella Rachel Muljono ◽  
Kim Sung Suk
Keyword(s):  
Earnings Management ◽  
Financial Distress ◽  
Listed Companies ◽  
Production Costs ◽  
The Other ◽  
Real Earnings Management ◽  
Financial Health ◽  
Other Hand ◽  
Management Approaches ◽  
The Impact

This research investigates the impact of financial distress on the magnitude of different earnings management approaches, namely real earnings management and accruals earnings management. This research utilizes a total of 2002 firm-year observations from 259 publicly-listed companies and 20 sub-industries in Indonesia from the year 2005 to 2014. Financial distress causes a significant increase of real earnings management and a significant decrease of accruals earnings management. It means that the healthier the company, the bigger the magnitude of real earnings management that is conducted through managing production costs and discretionary expenses. On the other hand, the lower the financial health of the company, the bigger the magnitude of accruals earnings management that is conducted through managing discretionary component of accruals.

scholarly journals PENGARUH DEBT EQUITY RATIO TERHADAP REAL EARNINGS MANAGEMENT: ANALISIS FIRM LEVEL PERUSAHAAN MANUFAKTUR DI INDONESIA

2020 ◽  
Vol 11 (2) ◽  
Author(s):  
Ferica Christinawati Putri
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Production Cost ◽  
Real Earnings Management ◽  
Firm Level ◽  
Equity Ratio

Penelitian ini bertujuan untuk mengetahui pengaruh DER (Debt Equity Ratio) terhadap keputusan melakukan manajamen laba riil pada perusahaan. Penelitian ini menggunakan Abnormal Cash Flow from Operation, Abnormal Production Cost dan Abnormal Discretionary Expenses dengan menggunakan model regresi Roychowdhury sebagai proksi dari manajemen laba riil. Dengan menggunakan sampel perusahaan sebanyak 92 perusahaan yang terdaftar di Bursa Efek Indonesia periode 2003-2014. Hasil penelitian dengan analisis level spesifik perusahaan menemukan bahwa DER berpengaruh signifikan positif terhadap manajemen laba riil Kata kunci: Abnormal Cash Flow from Operation, Abnormal Production Cost dan Abnormal Discretionary Expenses, dan Manajemen Laba 

scholarly journals Does Board Characteristics Constrain Real Earnings Management? Evidence From Korea

2017 ◽  
Vol 33 (6) ◽  
pp. 1251-1262
Author(s):  
Hyun Min Oh ◽  
Heung Joo Jeon
Keyword(s):  
Earnings Management ◽  
Cash Flows ◽  
Production Costs ◽  
Real Earnings Management ◽  
Board Independence ◽  
Board Size ◽  
Absolute Value ◽  
Board Characteristics ◽  
Mandatory Adoption ◽  
The Absolute

This study empirically analyzes the effect of board characteristics on real earnings management, which is measured by using three proxies including abnormal cash flows from operations, abnormal discretionary expenses, and abnormal production costs. Specifically, we will investigate how board independence (or board size) affects real earnings management. Additionally, we will investigate the relation between the board characteristics and real earnings management according to before K-IFRS mandatory adoption or after K-IFRS mandatory adoption. The empirical results of this study are as follows. First, the relation between board independence (board size) and the absolute value of abnormal cash flows from operations is statistically significant and positive (+). Second, the relation between board independence (board size) and the absolute value of abnormal production costs is statistically significant and positive (+). Third, the relation between board independence (board size) and the absolute value of abnormal discretionary expenses is statistically significant and positive (+). These findings present that the board independence (or board size) does not constrain real earnings management. Thus, these mean that board independence (or board size) does not work as a mechanism to reduce real earnings management. This study contributes to accounting research as it directly tests the relation between the board characteristics and real earnings management in Korea, providing empirical support that a board independence (board size) does not constrain real earnings management as effectively as it constrains accrual earnings management. 

scholarly journals The impact of board characteristics on earnings management

2021 ◽  
Vol 10 (3) ◽  
pp. 8-17
Author(s):  
Mahmoud Mohmad Aleqab ◽  
Maha Mohammad Ighnaim
Keyword(s):  
Regression Analysis ◽  
Earnings Management ◽  
Board Of Directors ◽  
Stock Exchange ◽  
The Other ◽  
Real Earnings Management ◽  
Board Members ◽  
Amman Stock Exchange ◽  
The Board Of Directors ◽  
The Impact

This study explores the effect of the board of directors’ characteristics on real earnings management in Jordanian non-financial companies listed on the Amman Stock Exchange. The sample size is 131 companies during the period of 2015–2017. The study uses a board of directors’ size, board members’ independence, board members’ financial experience, number of board meetings, membership in more than one board, and the ownership of board members of company shares to represent the board of directors’ characteristics. Real earnings management is measured using the Roychowdhury model (2006). A multiple regression analysis (panel data) is used to investigate the effect of the board of directors’ characteristics on real earnings management. The study found a negative and statistically significant impact for both: board members’ independence and board members’ financial experience on earnings management through real activities against the previous studies’ findings, this research measured the impact of real activities. On the other hand, the study did not find any statistically significant effect of the additional earnings management variables through actual activities

scholarly journals Wisdom that Equality Tends to Offer: The Case of Real Earnings Management Practices of Female Directors in IT-friendly Firms of Bangladesh

2019 ◽  
Vol 8 (6) ◽  
pp. 328-334
Keyword(s):  
Earnings Management ◽  
Management Practices ◽  
Emerging Economy ◽  
The Other ◽  
Real Earnings Management ◽  
Due Diligence ◽  
Financial Reports ◽  
Statistical Procedures ◽  
Female Directors ◽  
Female Director

In this study, we analyze how female directorship and real earnings management of IT-friendly firms are empirically interrelated in context of an emerging economy, viz. Bangladesh. We undertake relevant statistical procedures by utilizing a sample of 1914 firm-year observations as listed on the Dhaka Stock Exchangethroughout the period of 2000-2017.Our results imply that firms with female director(s) are more likely to be involved in real earnings management On the other hand, we also underscore that IT-friendly firms are less likely to be engaged in real earnings management and to provide superiorquality financial reports whereas the significance of this observation becomes more pronounced when conjoined with appointment of female directors in similar firms. We also find that IT-friendly firms with female directors are less probable to be involved in earnings management when compared to both ITfriendly firms with male director(s) and non-IT friendly firms. Based on the evidence, we discern that female directors are included in the board not only for fulfillment of stated quotas, but also for their demonstration of due diligence to restrain management from earnings management practices.

scholarly journals ANALISIS MANAJEMEN LABA DAN KINERJA KEUANGAN PERUSAHAAN PENGAKUISISI SEBELUM DAN SESUDAH AKUISISI

2018 ◽  
Vol 5 (2) ◽  
Author(s):  
Tyasshela Sani Wibowo
Keyword(s):  
Earnings Management ◽  
Financial Performance ◽  
The Other ◽  
Earning Management ◽  
Company Performance ◽  
Return On Assets ◽  
Discretionary Accrual ◽  
Net Profit ◽  
Before And After ◽  
Equity Ratio

This study discuss about earnings management and financial performance of the acquirer before and after acquisition. The purpose of research was to obtain empirical evidence of how earning management have done by acquirer companies before the implementation of acquisition. In addition it aims to determine the changes in the acquirer’s financial performance before and after the acquisition. This research is a comparative study which to compare the financial performance the acquirer before and after the company make acquisition. Analysis of financial performance uses  financial rations, including profitability, activity, and solvability. Analysis of earnings management using the theory of Jones modified. Earnings management by the acquirer is a proxy for discretionary accruals (DA). The company performance was measured by using financing rations (a net profit margin, return on assets, total assets turnover, and debt to equity ratio). The result of analysis showed that there are two companies which have positive discretionary accrual value and the other three companies which have negative discretionary accrual value. Moreover financial performance of the acquirer company is experiencing the different more toward to reduction of financial performance. The conclusion was that  earning management of two acquirer companies (ANTM and UNTR) have done by increasing the profit (income increasing accruals) before doing the acquisition. While, the other three companies (ENRG, RAJA, and SMGR) have done earning management by decreasing the profit (income decreasing accruals) before doing the acquisition. Furthermore, financial performance that measure with NPM and DER increased after acquisition, while ROA and TATO decreased after acquisition.

Effects of Attachment Styles on the Experience of Equity in Heterosexual Couples Relationships

2003 ◽  
Vol 50 (4) ◽  
pp. 298-310 ◽  
Author(s):  
Ina Grau ◽  
Jörg Doll
Keyword(s):  
Attachment Theory ◽  
Attachment Style ◽  
Intimate Relationships ◽  
Attachment Styles ◽  
Experimental Studies ◽  
The Other ◽  
Heterosexual Couples ◽  
Secure Attachment ◽  
Dependent Variables ◽  
Equity Ratio

Abstract. Employing one correlational and two experimental studies, this paper examines the influence of attachment styles (secure, anxious, avoidant) on a person’s experience of equity in intimate relationships. While one experimental study employed a priming technique to stimulate the different attachment styles, the other involved vignettes describing fictitious characters with typical attachment styles. As the specific hypotheses about the single equity components have been developed on the basis of the attachment theory, the equity ratio itself and the four equity components (own outcome, own input, partner’s outcome, partner’s input) are analyzed as dependent variables. While partners with a secure attachment style tend to describe their relationship as equitable (i.e., they give and take extensively), partners who feel anxious about their relationship generally see themselves as being in an inequitable, disadvantaged position (i.e., they receive little from their partner). The hypothesis that avoidant partners would feel advantaged as they were less committed was only supported by the correlational study. Against expectations, the results of both experiments indicate that avoidant partners generally see themselves (or see avoidant vignettes) as being treated equitably, but that there is less emotional exchange than is the case with secure partners. Avoidant partners give and take less than secure ones.

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