scholarly journals Opportunistic Behavior, External Monitoring Mechanisms, Corporate Governance, and Earnings Management

2018 ◽  
Vol 3 (1) ◽  
pp. 44-52
Author(s):  
Linda Wimelda ◽  
Agustina Chandra
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Cash Flow ◽  
Firm Size ◽  
Management Practices ◽  
Free Cash Flow ◽  
Managerial Ownership ◽  
Opportunistic Behavior ◽  
Manufacturing Companies ◽  
External Monitoring

Objective - The purpose of this research is to analyze the effect of motivational bonus, leverage, firm size, corporate governance (audit committee's size, the proportion of independent commissioners, institutional ownership, managerial ownership) and free cash flow on earnings management. Methodology/Technique - Earnings management is analyzed in this research using the modified Jones model. The population for the research consists of manufacturing companies listed on the Indonesian Stock Exchange (IDX) between 2013-2015. The final sample includes 60 manufacturing companies. Findings - The result of this study indicate that motivational bonus, leverage, firm size and free cash flow have an influence on earnings management practices. Motivational bonuses and free cash flow as opportunistic behavior also influence earnings management. In addition, leverage and firm size as external monitoring mechanism influence earnings management practices while audit committee size, the proportion of independent commissioners, institutional ownership and managerial ownership as corporate governance practices in companies has no significant effect on earnings management practices. Hence, it is concluded that corporate governance has no effect on earnings management practices in Indonesia. Type of Paper: Empirical Keywords: Opportunistic Behavior; External Monitoring Mechanisms; Corporate Governance; Earnings Management. JEL Classification: G34, G02.

scholarly journals Analisis Faktor yang Mempengaruhi Earning Management di Perusahaan Manufaktur Sektor Industri Barang Konsumsi yang Terdaftar di BEI Tahun 2015-2019

Horizon ◽  
2021 ◽  
Vol 1 (4) ◽  
pp. 733-747
Author(s):  
Geni Ramadhani ◽  
Citra Ramayani ◽  
Nilmadesri Rosya
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Firm Size ◽  
Consumer Goods ◽  
Stock Exchange ◽  
Free Cash Flow ◽  
Managerial Ownership ◽  
Company Size ◽  
Manufacturing Companies ◽  
Consumer Goods Industry

This study aims to analyze: The effect of profitability, leverage, company size, managerial ownership, free cash flow on earnings management in manufacturing companies in the consumer goods industry listed on the IDX in 2015-2019. Earnings management is measured by discretionary accruals with the modified Jones model. The population in this study were all manufacturing companies in the consumer goods industry listed on the Indonesia Stock Exchange with a sample size of 13 companies. The data used in this study are data on manufacturing companies in the consumer goods industry listed on the Indonesia Stock Exchange in 2015-2019 using panel data regression. The results of this study indicate that profitability has no significant effect on earnings management. Leverage has a significant effect on earnings management. Firm size has no significant effect on earnings management. Managerial ownership has a significant effect on earnings management. Free cash flow has no significant effect on earnings management. Profitability, leverage, firm size, managerial ownership, free cash flow simultaneously have a significant effect on earnings management.Keywords: Profitability, Leverage, Company Size, Managerial Ownership, Free Cash Flow and Earnings Management

scholarly journals Determinan Manajemen Laba Perusahaan di Sektor Konsumsi

2019 ◽  
Vol 3 (2) ◽  
pp. 96
Author(s):  
Muhammad Fajri
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Cash Flow ◽  
Institutional Ownership ◽  
Free Cash Flow ◽  
Earning Management ◽  
Managerial Ownership ◽  
Leverage Ratio ◽  
Good Corporate Governance ◽  
The Impact

The aim of this research is to provide empirical evidence on the impact of good corporate governance, free cash flow, and leverage ratio on earnings management. Good corporate governance is measured by audit committee’s size, the proportion of independent commissioners, institutional ownership, and managerial ownership. Discretionary accrual is the proxy of earning management. This research used 28 consumer goods companies listed in Indonesia Stock Exchange from 2016 to 2018. Data were analyzed using panel data with random effect model. Based on the result of analysis concluded that all components of good corporate governance (audit committee’s size, the proportion of independent commissioners, institutional ownership, and managerial ownership), have no significant effect on earnings management, on other hand leverage ratio has a negative effect and no significant on earning management, and free cash flow has a positve and no significant effect on earnings management

scholarly journals PENGARUH CORPORATE GOVERNANCE DAN FAKTOR LAINNYA TERHADAP MANAJEMEN LABA

2018 ◽  
Vol 19 (2) ◽  
pp. 183-194
Author(s):  
YULIANI ALMALITA
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Cash Flow ◽  
Audit Committee ◽  
Audit Quality ◽  
Control Variable ◽  
Total Sample ◽  
Analysis Data ◽  
Free Cash Flow ◽  
Managerial Ownership

The objective (s) of this research was verifying whether good corporate governance (size of audit committee, proportion of independent commissioner, institutional, managerial ownership, size of commissioner) leverage, free cash flow, profitability, losses, audit quality and market to book on earnings management and company’s size as control variable. Data analyze used in this research is secondary data and using purposive sampling where total sample are 69 listed companies on manufacture sector for period 2012-2013. Analysis data method that used in this research is multiple regression method with using SPSS version 19.0. The result of the research concludes that leverage and market to book have influence to earnings management. Whereas size of audit committee, proportion of independent commissioner, institutional, managerial ownership, size of commissioner, free cash flow, profitability, losses,

scholarly journals DETERMINAN MANAJEMEN LABA: KAJIAN EMPIRIS PADA PERUSAHAAN MANUFAKTUR GO PUBLIK DI BURSA EFEK INDONESIA

2019 ◽  
Vol 4 (1) ◽  
pp. 25-42
Author(s):  
Eny Kusumawati
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Firm Size ◽  
Audit Committee ◽  
Audit Quality ◽  
Institutional Ownership ◽  
Tax Planning ◽  
Free Cash Flow ◽  
Regression Result ◽  
Managerial Ownership

This study aimed to analyze the effect of nonfinantial and finantial to earnings management companies are included in the manufacturing company listed on the Indonesia Stock Exchange for the period 2014 until 2016. The finantial included leverage, free cash flow, profitability, tax planning, firm size and nonfinantial included managerial ownership, institutional ownership, independent board of commissioner, audit committee, audit quality. Measuring the earnings management used a discreationary accrual model. There were 120 companies taken by purposive sampling. Data was analyzed using multiple linear regression. Result of the data analysis showed that managerial ownership, institutional ownership, independent board of commissioner, and tax planning had no significantly effect on the earnings management. The audit committee, leverage, free cash flow, profitability, audit quality and firm size had significantly effect on the earnings management.  Keywords: finantial, non finantial, earning management

scholarly journals TATA KELOLA PERUSAHAAN, ALIRAN KAS BEBAS DAN MANAJEMEN LABA

2019 ◽  
Vol 21 (2) ◽  
pp. 205-214
Author(s):  
ARYA PRADIPTA
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Firm Size ◽  
Audit Committee ◽  
Stock Exchange ◽  
Selection Procedure ◽  
Institutional Ownership ◽  
Free Cash Flow ◽  
Managerial Ownership ◽  
Samples Selection

The purpose of this study is to examine the factors that influence earnings management in Indonesia. Those factors are profitability, leverage, firm size, audit committee, independent commissioner proportion, institutional ownership, managerial ownership and free cash flow. The population are non financial companies listed in Indonesia stock exchange. This study used 283 samples and samples selection procedure used purposive sampling. This research uses multiple regression analysis method. The result of this study shows that profitability and free cash flow have influence to earnings management. While, leverage, firm size, audit committee, independent commissioner proportion, institutional ownership and managerial ownership do not have influence to earnings management.

scholarly journals Free Cash Flow And Earnings Management: The Moderating Role Of Governance And Ownership

2015 ◽  
Vol 32 (1) ◽  
pp. 255 ◽  
Author(s):  
Mehdi Nekhili ◽  
Ines Fakhfakh Ben Amar ◽  
Tawhid Chtioui ◽  
Faten Lakhal
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Cash Flow ◽  
Audit Committee ◽  
Management Practices ◽  
Audit Quality ◽  
Free Cash Flow ◽  
Governance Mechanisms ◽  
Corporate Governance Mechanisms

<p class="Default">The purpose of this paper is to analyze the moderating effect of corporate governance and ownership features in lessening earnings management practices in a free cash flow (FCF) situation. A simultaneous equations model is developed to address endogeneity of the FCF variable. Based on a sample of French companies belonging to the SBF 120 index from 2001 to 2010, the results highlight the opportunistic behavior of managers in presence of free cash flows. Particularly, managers engage in earnings management practices that increase reported earnings. Our results also show that corporate governance mechanisms such as audit committee independence and external audit quality, in addition to institutional investors and managerial ownership reduce the extent of earnings management. Corporate governance mechanisms are substitutive in their monitoring role of managers’ behavior to reduce earnings management in presence of a free cash flow problem. </p>

scholarly journals Company Characteristics, Corporate Governance, Audit Quality Impact on Earnings Management

2019 ◽  
Vol 4 (2) ◽  
pp. 43-49
Author(s):  
Friska Firnanti ◽  
Kashan Pirzada ◽  
Budiman Budiman
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Cash Flow ◽  
Audit Committee ◽  
Audit Quality ◽  
Institutional Ownership ◽  
Free Cash Flow ◽  
Managerial Ownership ◽  
Sales Growth ◽  
Return On Assets

Objective – The purpose of this research is to empirically examine how company characteristics, corporate governance and audit quality affect earnings management. Methodology/Technique – The population used for this research is manufacturing companies listed on the Indonesian Stock Exchange between 2013 and 2015. The sampling method used in this research is purposive sampling. 64 companies are examined, with 192 items of data being obtained. Findings – This research also uses statistical testing through a multiple regression. The results show that return on assets, financial leverage, free cash flow, and sales growth all have an influence on earnings management. Meanwhile, other variables such as managerial ownership, institutional ownership, board size, the presence of an audit committee, firm size, and audit quality have no significant effect on earnings management. Novelty – In this research, company characteristics are proxied with the return on assets, financial leverage, firm size, free cash flow, and sales growth, while corporate governance is proxied with managerial ownership, institutional ownership, board size, and the presence of an audit committee. Type of Paper: Empirical. Keywords: Company Characteristics; Corporate Governance; Audit Quality; Earnings Management; Agency Theory. Reference to this paper should be made as follows: Firnanti, F.; Pirzada, K.; Budiman. 2019. Company Characteristics, Corporate Governance, Audit Quality Impact on Earnings Management, Acc. Fin. Review 4 (2): 43 – 49 https://doi.org/10.35609/afr.2019.4.2(2) JEL Classification: M40, M41, M49.

FAKTOR-FAKTOR YANG MEMPENGARUHI KEBIJAKAN DIVIDEN

2017 ◽  
Vol 8 (1) ◽  
pp. 63-84
Author(s):  
SYAIFUL BAHRI
Keyword(s):  
Corporate Governance ◽  
Cash Flow ◽  
Firm Size ◽  
Dividend Policy ◽  
Stock Exchange ◽  
Sample Selection ◽  
Institutional Ownership ◽  
Free Cash Flow ◽  
Manufacturing Companies ◽  
Good Corporate Governance

The purpose of this study is to examine the effect of good corporate governance, profitability, liquidity, free cash flow, firm size, leverage, collateral assets, and institutional ownership of dividend policy. The research population of manufacturing companies listed on the Indonesia Stock Exchange in 2013 until 2015. The sample of research by using purposive sampling of the research sample selection of 47 manufacturing companies within 3 years and with the number of units of analysis as much as 141. The results show that good corporate governance, liquidity, free cash flow, leverage, collateral assets, and institutional ownership have no effect on dividend policy. Profitability and firm size affect the dividend policy effect on dividend policy.

scholarly journals DETERMINAN MANAJEMEN LABA AKRUAL PADA INDEKS LQ45 DAN JII PERIODE 2010-2015

2018 ◽  
Vol 3 (2) ◽  
pp. 141-151
Author(s):  
Rina Trisnawati ◽  
Mardayaningrum Mardayaningrum ◽  
Laillatul Khotimah
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Cash Flow ◽  
Audit Committee ◽  
Sampling Method ◽  
Free Cash Flow ◽  
Earning Management ◽  
Managerial Ownership ◽  
Governance Mechanism ◽  
Corporate Governance Mechanism

The purpose of this study is to examine and analyze the mechanisms of corporate governance, leverage and the free cash flow against the accrual earning  management on LQ45 and JII Indexes during the 2010-2015 period. The number of samples in the study is 144 companies in JII index and 121 companies  in JII indexs. Sampling techniques using purposive sampling method. Methods of data analysis using multiple linear regression to test and prove the hypothesis of the study. Research results showed the proxy of corporate governance mechanism with institutional ownership, managerial ownership, the proportion of Board of Commissioners and the audit committee no effect  to accrual earnings management.(prob value >0.05). The free cash flow and leverage have an effect significantly to accrual earning management (prob value <0.05). Meanwhile in JII index, they have the same results. Corporate governance also no effect to accrual earning  management, but the free cash flow and leverage have an effect significantly to accrual earning management. Keywords: corporate governance, leverage, free cash flow, accrual earnings management

scholarly journals Surplus Free Cash Flow, Stock Market Segmentations and Earnings Management: The Moderating Role of Independent Audit Committee

2020 ◽  
pp. 097215092093406
Author(s):  
Ahmad A. Toumeh ◽  
Sofri Yahya ◽  
Azlan Amran
Keyword(s):  
Stock Market ◽  
Earnings Management ◽  
Cash Flow ◽  
Audit Committee ◽  
Management Practices ◽  
Free Cash Flow ◽  
The Body ◽  
Moderating Role ◽  
Independent Audit

Management engages in earnings manipulation for different reasons. This article argues that low-growth firms with high free cash flow will opt for income-increasing earnings management in order to obscure the low profits derived from their investments in negative net present value (NPV) projects. On the other hand, we argue that the listed companies might be interested in being listed in the first market due to its privileges and to preserve the competitiveness, through managing their earnings upwardly, so that they can satisfy the condition of achieving a particular earnings limit. This article should advance the body of earnings management literature in the Jordanian context by examining the effect of the moderating role of an independent audit committee (IAC) in the association between surplus free cash flow (SFCF) and income-increasing discretionary accruals (DAC). Further, this is the initial empirical attempt to investigate the moderation effect of IAC between stock market segmentations (SMS) and positive DAC. The results of this current study offer original and beneficial information for the Jordanian government and other countries with a similar institutional environment because the study promotes the application of applying IAC as an efficient tool to constrain management behaviour towards manipulation of the accruals. On top of that, this research offers information concerning the prevailing situation of earnings management practices and corporate governance in Jordan, in which shareholders, local and international investors, policymakers, regulators and academic researchers are interested. Finally, panel data analyses and various statistical techniques are employed to derive conclusions.

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