PENGARUH KEPEMILIKAN INTITUSIONAL DAN KUALITAS AUDIT TERHADAP EARNINGS MANAGEMENT DENGAN FINANCIAL DISTRESS SEBAGAI VARIABEL MODERASI

SIMAK ◽  
2021 ◽  
Vol 19 (02) ◽  
pp. 248-267
Author(s):  
Sri Ayem ◽  
Yuliana Adelheit Knoba
Keyword(s):  
Earnings Management ◽  
Financial Distress ◽  
Audit Quality ◽  
Institutional Ownership ◽  
Earning Management ◽  
Manufacturing Companies ◽  
Financial Reports ◽  
Negative Effect ◽  
Management Audit ◽  
The Relationship

This research aims to determine the effect of institutional ownership and audit quality on earnings management with financial distress as a moderating variable. The research sample was selected using a purposive technique and taken were the annual financial reports of manufacturing companies that were registered consistently during the last four years, namely 2016-2019 with a sample size of 14. The results of this study indicate that institutional ownership has a negative and significant effect on earning management, audit quality has a negative effect on earnings management, financial distress can moderate the relationship between institutional ownership and earnings management, financial distress can moderate the relationship between audit quality and earnings management

scholarly journals The Relationship of Reserve Account Disclosure Transparency and Accrual Earning Management with Audit Quality as Moderating

2018 ◽  
Vol 10 (1) ◽  
pp. 58-70
Author(s):  
Latifah Binti Nono ◽  
Siti Khomsatun
Keyword(s):  
Audit Quality ◽  
Stock Exchange ◽  
Sample Selection ◽  
Earning Management ◽  
Manufacturing Companies ◽  
Negative Effect ◽  
Management Audit ◽  
Relationship Of ◽  
The Relationship

The purpose of this study is to examine the effect of transparency of reserve account disclosure on accrual earning management, and also to examine the role of audit quality as a moderator for the effect of transparency of reserve account disclosure on accrual earning management. The population in the study are companies listed on the Indonesia Stock Exchange with a sample period of 2012-2015. The sample selection technique used purposive sampling. The samples were obtained 350 observations of manufacturing companies listed in Indonesia Stock Exchange period 2012 to 2015. This study uses panel regression statistical method with unbalance panel data. The measurements used for Transparency of reserve account disclosure are word count, sentence count, and disclosure index. The results support the hypothesis which show that transparency of reserve account disclosure have negative significant effect on the accrual earning management, audit quality have negative significant effect on accrual earning management, and audit quality has a role as moderator (strengthen) the Negative effect between transparency of reserve account disclosure to accrual earning management.Nevertheless, the result is inconsistent in each model. This study concludes that accrual earning management can be minimized by selecting competent auditors and increasing transparency of accounts receivable accounts.

Corporate Governance and Earnings Management: Empirical Evidence of the Distress and Non-Distress Companies

2021 ◽  
Vol 5 (4) ◽  
pp. 23-30
Author(s):  
Theresia Theresia ◽  
Dewi Kurnia Indrastuti ◽  
Nico Alexander
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Empirical Evidence ◽  
Financial Distress ◽  
Audit Committee ◽  
Management Practices ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Manufacturing Companies ◽  
Negative Effect

Objective - The purpose of this research is to obtain empirical research on the effect of corporate governance on earnings management in distressed and non-distressed companies. Corporate governance in this research is measured by independent board, audit committee, board of commissioners, institutional ownership and number of board commissioner meetings. The research predicts that corporate governance has a negative effect on earnings management either both in distressed and non-distressed companies. Methodology/Technique - This research uses 309 manufacturing companies listed on the Indonesian Stock Exchange and the data was obtained using purposive sampling method during 2016 until 2018. Of the 309 respondents in the sample, 287 are distressed companies and 22 are non-distressed companies. The data was analyzed using a multiple regression method. Findings - The empirical results show that commissioner board and institutional ownership have a negative effect on earnings management in non-distressed companies but in distressed companies, corporate governance does not have an effect on earnings management. This research shows that distressed companies, corporate governance cannot minimize earnings management practices because to maintain the company as a going concern, management will do earnings management to ensure stakeholders’ trust to encourage further investment in the company. In non-distressed companies, corporate governance can minimize earnings management practices because the company is in a good financial condition, so they don’t need to do earnings management. Additionally, in order to ensure stakeholders’ trust, the company will strengthen its’ corporate governance mechanisms. Type of Paper: Empirical. JEL Classification: M41, M43, G34, J33, K22. Keywords: Financial Distress; Earnings Management; Non-Financial Distress; Indonesia Stock Exchange. Reference to this paper should be made as follows: Theresia; Indrastuti, D. K; Alexander, N. (2021). Corporate Governance and Earnings Management: Empirical Evidence of the Distress and Non-Distress Companies, Accounting and Finance Review, 5(4): 23 – 30. https://doi.org/10.35609/afr.2021.5.4(3)

scholarly journals The impact of managerial ownership, institutional ownership, proportion of independent commissioner, and intellectual capital on financial distress

2019 ◽  
Vol 21 (3) ◽  
pp. 351
Author(s):  
I Kadek Widhiadnyana ◽  
Ni Made Dwi Ratnadi
Keyword(s):  
Intellectual Capital ◽  
Financial Distress ◽  
Stock Exchange ◽  
Multinomial Logistic Regression ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Financial Reports ◽  
Negative Effect ◽  
The Impact

Financial distress is a phase of the decline in the financial condition experienced by a company before the bankruptcy or liquidation occurs. One of the causes of financial distress is the company’s operating losses, caused its operating cash flow to be negative. During 2014-2016, there was 24 percent of manufacturing companies listed in Indonesia Stock Exchange (BEI) that has a negative pretax profit. The purpose of this study was to obtain empirical evidence of the effect of managerial ownership, institutional ownership, the proportion of independent commissioner board, and intellectual capital on financial distress. The population of this research is all of manufacturing companies listed on Indonesian Stock Exchange (IDX) on 2014-2016. The sample was taken using a non-probability sampling with a saturated sample technique. The numbers of samples analyzed were 423 financial reports of manufacturing companies published on IDX during 2014-2016. The analysis technique used in this research is multinomial logistic regression. It was found that managerial ownership has a negative effect on financial distress, institutional ownership has a negative effect on financial distress, proportion of independent commissioner has a positive effect on financial distress, and intellectual capital has a negative effect on financial distress.

scholarly journals AUDIT QUALITY, AUDIT COMMITTEE, INSTITUTIONAL OWNERSHIP AND INDEPENDENT DIRECTOR ON EARNING MANAGEMENT

2021 ◽  
Vol 13 (1) ◽  
pp. 42-50
Author(s):  
Ni Putu Desy Cristiana Yanthi ◽  
Dudi Pratomo ◽  
Kurnia Kurnia
Keyword(s):  
Earnings Management ◽  
Audit Committee ◽  
Audit Quality ◽  
Institutional Ownership ◽  
Audit Committees ◽  
Earning Management ◽  
Independent Director ◽  
Observation Data ◽  
Manufacturing Companies ◽  
Quality Audit

This study aims to analyze audit quality, audit committees, institutional ownership and independent director on earnings management at manufacturing companies listed on the Indonesia Stock Exchange in 2012-2016. The sampling method use purposive sampling for 5 years so its obtained 160 observation data samples. The results in this study indicate that earnings management that occur is the type of income decreasing. Simultaneously audit quality, audit committee, institutional ownership and independent directors significantly influence on income decreasing. Partially, audit quality and independent director variables have a negative effect on income decreasing. While audit committee independence has a positive effect on income decreasing. Furthermore, audit quality, audit committees, and institutional ownership have no effect on earning management type income decreasing.

scholarly journals PENGARUH REAL EARNING MANAGEMENT TERHADAP ARUS KAS OPERASI PERUSAHAAN DENGAN KUALITAS AUDIT SEBAGAI VARIABEL MODERASI (Studi pada Perusahaan Manufaktur yang Terdaftar di BEI)

MODUS ◽  
2016 ◽  
Vol 27 (1) ◽  
pp. 65 ◽  
Author(s):  
Felicianus Adi Nugroho ◽  
Dewi Ratnaningsih
Keyword(s):  
Earnings Management ◽  
Audit Quality ◽  
Stock Exchange ◽  
Predictive Ability ◽  
Real Earnings Management ◽  
Earning Management ◽  
Manufacturing Companies ◽  
Management Actions ◽  
The Relationship

This study aims to determine the efect of real earnings management which is a proxy of earnings management to the predictive ability of fnancial reports through the company’s operating cash fow. Researchers also consider the infuence exerted by the quality of audits of the relationship between real earnings management with the company’s operating cash fow. Samples are manufacturing companies listed in Indonesia Stock Exchange during the period of observation 2010-2012.Berdasarkan criteria previously set contained 249 corporate data used in this study. The results of this study revealed that real earnings management has an infuence on the predictive ability of fnancial statements through operating cash fow. Quality audits can also afect earnings management actions undertaken by the company and consequently also of the operating cash fow of the company. Overall audit quality may afect the actions of earnings management and certainly also the predictive ability of corporate fnancial statements.Keywords: real earnings management, operating cash fow, and audit quality.

Corporate Governance and Earnings Management: Empirical Evidence of the Distress and Non-Distress Companies

2020 ◽  
Vol 11 (1) ◽  
pp. 55-55
Author(s):  
Theresia ◽  
Dewi Kurnia Indrastuti ◽  
Nico Alexander
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Financial Distress ◽  
Audit Committee ◽  
Stock Exchange ◽  
Management Practice ◽  
Institutional Ownership ◽  
Research Problem ◽  
Manufacturing Companies ◽  
Negative Effect

The purpose of this research is to get empirical study the effect of corporate governance on earnings management on distress and non-distress companies. Corporate governance in this research measured by independent board, audit committee, board of commissioner, institutional ownership and number of board commissioner meeting. The research problem are corporate governance has a negative effect on earnings management either in distress companies and non-distress companies. This research used 309 manufacturing companies companies that listed in Indonesia Stock Exchange and the data were selected using purposive sampling method during 2016 until 2018. From 309 sample, 287 sample are distress companies and 22 companies are non-distress companies. The data were analyzed using multiple regression method The empirical result show that, commissioner board and institutional ownership has negative effect on earnings management in non-distress companies but in distress companies, corporate governance do not have effect on earnings management. From this research show that when companies in distress companies, corporate governance cannot minimize earnings management practice, but in non-distress companies corporate governance can minimize earnigns management practice. Keywords: Corporate Governance, Earnings Management, Financial Distress, Discretionary Accrual

scholarly journals The effect of financial distress and earnings management on tax aggressiveness with corporate governance as the moderating variable

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

scholarly journals Financial Distress, Tax Loss Carried Forward, Corporate Governance and Tax Avoidance

2020 ◽  
Vol 11 (1) ◽  
pp. 54-54
Author(s):  
Mayang Sekar Pembayun Khamisan ◽  
Silvy Christina ◽  
Silvy Christina
Keyword(s):  
Corporate Governance ◽  
Firm Size ◽  
Financial Distress ◽  
Audit Committee ◽  
Audit Quality ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Tax Loss

One of the biggest state's income is tax. In Indonesia, almost all activities carried out by the public are taxable, for example; grocery for daily activities, electronic equipment purchased, and employee income tax. Taxes have a very important role on state revenue because of taxes were main sources in contributing funds used to finance government spending and national development, but for the tax company is a burden that reduces the company's net profit, so the company will try to reduce the tax burden. To control the amount of tax payments is through tax avoidance, known as tax avoidance which is part of tax planning. Therefore this study aims to determine the effect of financial distress, loss compensation, institutional ownership, managerial ownership, audit committee, audit quality, company size, and return on assets to tax avoidance actions. The companies used in this study are manufacturing companies listed on the Indonesia Stock Exchange (IDX) with a research period of 2016-2018. The number of research samples used were 162 data. The method of sampling used purposive sampling and this research used multiple regression analysis to test the hypothesis. This research shows that financial distress, tax loss carried forward, institutional ownership, managerial ownership, audit committee, audit quality, firm size, and return on asset have no influence on tax avoidance. This research shows that financial distress, tax loss carried forward, institutional ownership, managerial ownership, audit committee, audit quality, firm size, and return on asset have no influence on tax avoidance. Suggestions for further research to extend the study period of more than 3 years. In addition, it is hoped that further researchers can replace or add other independent variables such as sales growth. Keywords: Financial Distress, Tax Loss Carried Forward, Corporate Governance, Tax Avoidancae

scholarly journals Earnings management determinants: A study of Egyptian listed firm characteristics post the Egyptian revolution

2021 ◽  
Vol 5 (2, special issue) ◽  
pp. 165-166
Author(s):  
Engy ElHawary ◽  
Dina Hassouna
Keyword(s):  
Earnings Management ◽  
Management Practices ◽  
Audit Quality ◽  
Stock Exchange ◽  
Management Practice ◽  
Earning Management ◽  
Firm Characteristics ◽  
Financial Leverage ◽  
Egyptian Revolution ◽  
The Relationship

This research aims to look at how firm characteristics and audit quality can affect the earning management practices in the Egyptian context, within the period of 2011–2019. This period was after the Egyptian revolution and has not been well investigated in Egypt, especially after the new release of corporate governance rules for listing firms. A sample of 157 non-financial listed companies in the Egyptian stock exchange is selected for achieving the research objective through analysing their financial reports. The panel least squares, using the fixed-effect model, is used to test the hypotheses and investigate the relationship between discretional accruals and firm characteristics, where the dependent variable is the earnings management, measured by the discretionary accruals and the independent variables are the firm characteristics (size, financial leverage, age, survival and audit quality). The results illustrate that the relationship between a firm’s financial leverage and earnings management is positive. This study may help the firms to control their financial leverage for avoiding any earnings management practice. The stakeholders should notice such significant firm characteristics in making their own decisions, especially after the COVID-19 pandemic crisis, which may expectedly increase the firm financial leverage, and in turn, some earning management practices can be used intentionally to hide the bad firm performance

scholarly journals Dampak Non-Debt Tax Shield dan Resiko Bisnis Terhadap Struktur Modal Perusahaan Manufaktur Indonesia

2020 ◽  
Vol 25 (2) ◽  
pp. 108
Author(s):  
Ani Wilujeng Suryani ◽  
Mitha Icha Sari
Keyword(s):  
Capital Structure ◽  
Financial Distress ◽  
Risk Level ◽  
Manufacturing Companies ◽  
Business Risk ◽  
Financial Reports ◽  
Tax Shield ◽  
Negative Effect ◽  
Tax Deductions ◽  
Debt Tax Shield

Capital structure decision is an important act made by company’s financial manager as mismanagement causes financial distress. This study aims to determine the effect of non-debt tax shield and business risk on capital structure. The data in this study were collected from the financial reports of 137 manufacturing companies in Indonesia from 2014 to 2019. Hypothesis testing was carried out using a fixed effect panel regression model. The results showed that the non-debt tax shield had a significant negative effect on capital structure, while business risk had a positive effect. Thus, companies that have a low non-debt tax shield will increase their debt to get compensation for tax deductions from interest expenses, while companies with a high risk level prefer internal financing to decrease the debt level. This study contributes to the literature by uncovering the factors that influence the determination of corporate debt levels in manufacturing industries in Indonesia. The result of this research can be used by the company managers to consider business risk and non-debt tax shields in determining the optimum capital structure to increase the value of the company.

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