scholarly journals Real Earnings Management, Firm Performance, and Corporate Governance Mechanism

2021 ◽  
Vol 3 (2) ◽  
pp. 39-49
Author(s):  
Maria Stefani Osesoga ◽  
Rosita Suryaningsih ◽  
Febryanti Simon
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Earnings Management ◽  
Cash Flow ◽  
Stock Exchange ◽  
Real Earnings Management ◽  
Governance Mechanism ◽  
Discretionary Accrual ◽  
Corporate Governance Mechanism ◽  
The Impact

The purpose of this study is to analyze the impact of real earnings management on firm performance and the impact of corporate governance as an intervening variable in the relationship between real earnings management and firm performance. The object are companies include in Corporate Governance Perception Index during 2015-2019 and listed in Indonesia Stock Exchange (IDX) and analyzed by using path analysis method. Real earnings management has a significant effect on the firm performance. Furthermore, with corporate governance mechanism within the company, real earnings management significantly affect firm performance. This research is meaningful, but has limitations. The result cannot be generalizing because the sample only companies that listed in CGPI and IDX period 2015-2019. The research implication are as follows: top level management should be cautious about credit policy, cash flow from operation, discretionary expenditures, and production. Earnings management is one of variable that the most prevalent in recent studies but the proxy for earnings management in the recent studies used discretionary accrual. In this research, real earnings management is used to indicate earnings management which measured by abnormal cash flow from operation. Thus, it may provide some contribution to the literature.

Corporate Governance Mechanism on Financial Performance (Evidence from the Indonesia’s Listed State-owned Enterprises)

2021 ◽  
Vol 1 (1) ◽  
pp. 24-34
Author(s):  
Anak Agung Kompiyang Ratih Maldini ◽  
Pananda Pasaribu ◽  
Christian Haposan Pangaribuan
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Positive Impact ◽  
Stock Exchange ◽  
Governance Structure ◽  
Board Independence ◽  
Governance Mechanism ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism ◽  
The Impact

Objective – This study aims to find the impact of privatization, which proxied by good corporate governance toward the financial performance of SOEs in Indonesia. Methodology – This study used 16 privatized SOEs that are listed in Indonesia Stock Exchange and also 16 privatized non-SOEs as the comparison. The data is collected from the year 2014 to 2018 and analyzed by using multiple regression panel data. Findings – This study found that director size and board independence have a positive impact toward SOEs financial performance. The director size and board independences have a positive significant impact toward the SOEs financial performance while the privatized non-SOEs is not significantly affected Novelty – This study examines proper governance structure in SOEs and non-SOEs, thus providing new insights about good corporate governance regulation in the Indonesian context.

scholarly journals Pengaruh Intellectual Capital dan Corporate Governance Terhadap Kinerja Bank di Indonesia

2019 ◽  
Vol 2 (1) ◽  
pp. 57
Author(s):  
Jadzil Baihaqi
Keyword(s):  
Corporate Governance ◽  
Intellectual Capital ◽  
Boards Of Directors ◽  
Audit Committee ◽  
Stock Exchange ◽  
Governance Mechanism ◽  
Moderation Effect ◽  
Corporate Governance Mechanism ◽  
The Impact ◽  
The Relationship

This study examines the impact of intellectual capital and corporate governance mechanism on banks’ performance both directly and also moderated effect. We used banks that were listed in the Indonesia Stock Exchange. The bank’s performance was measured by risk-based bank rating while intellectual capital was measured by the coefficient of VAICTM (Pulic, 1998). The corporate governance mechanism was measured based on the size of boards of directors, the composition of independent director, CEO remuneration, managerial ownership, the effectiveness of audit committee and ownership concentration. The result of the study shows that banks’ performance was positively influenced by intellectual capital. However, corporate governance mechanism did not influence the banks’ performance, while the moderation effect of corporate governance mechanism on the relationship between intellectual capital and banks’ performance was not confirmed.

scholarly journals MEKANISME CORPORATE GOVERNANCE DAN MANAJEMEN LABA MODEL LONG TERM DISCRETIONARY ACCRUAL PADA PERUSAHAAN GO PUBLIK DI INDONESIA

2019 ◽  
Vol 21 (1) ◽  
pp. 55-69
Author(s):  
Wiyadi Wiyadi ◽  
Rina Trisnawati ◽  
Ecclisia Sulistyowati
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Institutional Investors ◽  
Audit Committee ◽  
Governance Mechanism ◽  
Purposive Sampling ◽  
Discretionary Accrual ◽  
Corporate Governance Mechanisms ◽  
Corporate Governance Mechanism

Penelitian ini bertujuan menganalisis pengaruh mekanisme corporate governanceinternal dan eksternal terhadap manajemen laba dengan pendekatan long termdiscretionary accrual perusahaan go publik di Indonesia yang tergabung dalamindeks LQ45 dan JII selama periode 2011-2015. Sampel penelitian berjumlah 226perusahaan diambil secara purposive sampling. Mekanisme CorporateGovernance terbagi menjadi: Mekanisme Corporate Governance internal daneksternal. Mekanisme Corporate Governance internal diproksikan dengan komiteaudit dan dewan komisaris independen. Sedangkan corporate governanceeksternal diproksikan dengan konsentrasi kepemilikan dan investor institusi.Metode analisis data menggunakan regresi linier berganda. Hasil penelitianmenunjukkan bahwa konsentrasi kepemilikan berpengaruh terhadap manajemenlaba. Sedangkan komite audit, dewan komisaris independen dan investor institusitidak berpengaruh terhadap manajemen laba.This study aims to analyze the influence of internal and external corporate governance mechanisms on earnings management with the long term discretionary accrual approach of companies incorporated in the LQ45 and JII indices during the period 2011-2015. The research sample was 226 companies taken by purposive sampling. The Corporate Governance mechanism is divided into: Internal and external Corporate Governance Mechanisms. The internal Corporate Governance mechanism is proxied by the audit committee and independent board of commissioners. While external corporate governance is proxied by the concentration of ownership and institutional investors. Methods of data analysis using multiple linear regression. The results showed that ownership concentration had an effect on earnings management. While the audit committee, independent board of commissioners and institutional investors have no effect on earnings management

scholarly journals Pengaruh Mekanisme Internal Corporate Governance Terhadap Pemilihan Auditor Eksternal

2020 ◽  
Vol 21 (2) ◽  
pp. 182
Author(s):  
Febrina Nafasati P ◽  
Dian Indu Dewi
Keyword(s):  
Corporate Governance ◽  
Stock Exchange ◽  
Governance Mechanism ◽  
Auditor Choice ◽  
Auditor Quality ◽  
Corporate Governance Mechanism ◽  
The Impact

<p><em>Internal Coporate Governance Mechanism influence for Auditor Choice. The research is to know of the impact of Internal Corporate Governance Mechanism on auditor choice by non-financial companies, where the proxies of Internal Corporate Governance Mechanism used are the largest shareholder, audit committee’s effectivenese, the number of board of commissioner and the proportion of independent commissioner. This study used Top 4-non Top 4 auditor segregation as a proxy of auditor quality that will be chosen by the company.</em></p><p><em>This study used Logistic Regresion and used 177 of non financial companies listed on the Indonesia Stock Exchange 2013. </em></p><p><em>The Result showed that there are significant of the number of board of commissioner and audit committee’s effectivenese on auditor choice by company. Therea are not significant of the largest shareholder and the proportion of independent commissioner on auditor choice by company.</em></p>

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

2020 ◽  
Vol 4 (1) ◽  
pp. 33-46 ◽  
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.

scholarly journals The Impact of Corporate Governance on Earnings Management: The Case Of Pakistan Textile Industry

2021 ◽  
Vol 6 (1) ◽  
pp. 71-87
Author(s):  
Shahzad Ahmad ◽  
Asad Sarfaraz Khan ◽  
Dr. Muhammad Zahid
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Stock Prices ◽  
Textile Industry ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Least Square ◽  
Governance Mechanism ◽  
Board Size ◽  
The Impact

Due to globalization and expansion in the world markets, the sensitivity of investor’s confidence has become a challenge especially in the wake of issues related to stock prices, earnings management (EM), the stability of income levels and corporate governance (CG) application. This study aims to explore the usefulness of four traits of corporate governance mechanism in constraining earnings management activities. By using five years’ observations of 109 textile companies listed on Pakistan Stock Exchange (PSX) for the period 2013-2017. Traits comprising of board size, gender diversity, board experience and qualification of board member are analyzed using Ordinary Least Square (OLS). Results of the study submit that board experience; finance qualification and business qualification have a negative significant impact on EM thus contends that experienced board members having business and finance qualification discourage earnings manipulation. While, positive and significant impact of board size on earnings management is an indication of loss of control due to its large size. Moreover, gender diversity and chartered accountancy are found irrelevant to EM in our case.

scholarly journals Pengaruh Penerapan Mekanisme Good Corporate Governance Terhadap Praktik Manajemen Laba Pada Perusahaan Manufaktur Yang Terdaftar Di Bursa Efek Indonesia

2009 ◽  
Vol 1 (1) ◽  
pp. 28
Author(s):  
Elfrida Ambarita ◽  
Dian Anita Nuswantara
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Management Practices ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
Management Practice ◽  
Governance Mechanism ◽  
Good Corporate Governance ◽  
Corporate Governance Mechanism

AbstractThe conflict of interest between agent and principal, asymmetrical information and accounting method selection are able to be used by the manager to do earning management practices. However, it could be reduced by practicing the good corporate governance mechanism which can adjust agent and principal’s interest. The objective of this study is to test the effect of good corporate governance mechanism, as reflected by institutional ownership, managerial ownership, presence of independent board and audit committee existence on the earnings management practice. Using sample from 62 companies in the manufacturing sector at the Jakarta Stock Exchange, which publish financial statement from 2005-2006. This study shows that good corporate governance mechanism insignificantly influence earnings management practice simultaneously. We can infer that mechanism haven’t succeeded to minimize the earnings management practices. 

scholarly journals The Impact of Corporate Governance Mechanism over Financial Performance: Evidence from Romania

2021 ◽  
Vol 13 (19) ◽  
pp. 10494
Author(s):  
Tatiana Dănescu ◽  
Ioan-Ovidiu Spătăcean ◽  
Maria-Alexandra Popa ◽  
Carmen-Gabriela Sîrbu
Keyword(s):  
Corporate Governance ◽  
Financial Performance ◽  
Intellectual Capital ◽  
Stock Exchange ◽  
Governance Mechanism ◽  
Specific Context ◽  
Business Sustainability ◽  
Earnings Per Share ◽  
Corporate Governance Mechanism ◽  
The Impact

In the context of the globalization and internationalization of economies, to efficiently attract financial and intellectual capital that is necessary for business sustainability, the mechanisms of corporate governance have to be based on gaining the trust of all the interested parties. These objectives require an organizational culture and a climate which is based on correctness, responsibility, transparency, and efficiency, in which ethical principles govern the spread of behaviors in the entire entity. This research identifies the relation between the corporate governance and the entities’ financial performance using the specific context of Romania. The findings of this study reveal new insights on the corporate governance and financial performance based on a sample of companies listed on the Bucharest Stock Exchange. The results show a positive correlation between the net accounting results, earnings per share, and the duality of the CEO, and a negative correlation between price per share and the duality of the CEO.

scholarly journals Pengaruh Mekanisme Corporate Governance Dan Ukuran Perusahaan Terhadap Manajemen Laba

2017 ◽  
Vol 4 (1) ◽  
Author(s):  
Elvia Launa ◽  
Novita Weningtyas Respati
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Firm Size ◽  
Audit Committee ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Managerial Ownership ◽  
Governance Mechanism ◽  
Corporate Governance Mechanism

The purpose of this research is to examine the influence of the corporate governance mechanism and firm size concerning to the earnings management. Corporate governance mechanism in this study include managerial ownership, independent commissioner and audit committee. The samples of this research are 7 real estate companies listed in Indonesian Stock Exchange period 2009-2013. This study using a purposive sampling method to determining the number of samples used. The method of analysis on this research is using multiple linear regression analysis. The result of the study shows that managerial ownership, independent commissioner, auditcommittee and firm size are not influence to earnings management. Managerial ownership has no influence to earnings management due to low managerial ownership owned by the samplecompany, while the independent commissioner has no influence because the placement of theindependent commissioner only act to fulfill the formal provisions. Audit committee has noinfluence to earnings management because the member size of audit committee still relativelystandard with the Capital Market Supervisory Agency regulation and firm size has no influenceto earnings management because earnings management’s action not influenced by the firm size.

scholarly journals Corporate Governance Mechanism and Firm Performance as Determinants of CEO Compensation: A Panel Data Analysis of Pakistani Listed Companies

2013 ◽  
Vol 8 (4) ◽  
pp. 307-314
Author(s):  
Zahid Irshad Younas ◽  
Bilal Mehmood ◽  
Asal Ilyas ◽  
Haseeb Asif Bajwa
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Panel Data ◽  
Fixed Effects ◽  
Ceo Compensation ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Governance Mechanism ◽  
Board Size ◽  
The Impact

The purpose of this study is to investigate the impact of corporate governance, firm performance on CEO compensation. More specific, firm performance, board size and audit expenditure are linked with CEO compensation. Using panel data for 151 Pakistani firms listed on Karachi Stock Exchange (KSE), fixed effects regression has been performed. The results indicate firm performance is negatively associated with CEO compensation, which hold managerial power theory. While, board size and audit expenditure showed a positive relationship with CEO compensation, which reflects the presence of human capital theory. The results of study are in line with the prior studies done on CEO compensation.

Sign in / Sign up

Export Citation Format

Share Document