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.

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. 141-154
Author(s):  
FLORENCIA ◽  
MEINIE SUSANTY
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Firm Size ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Institutional Ownership ◽  
Free Cash Flow ◽  
Return On Assets ◽  
Quality Audit

The purpose of this study is to examine the factors that influence earnings management on non financial companies that listed in Indonesia Stock Exchange. These factors are firm size, audit quality, audit committee, institutional ownership, return on assets, leverage, and free cash flow. Population of this research are non financial companies listed in Indonesia Stock Exchange from 2015-2017. The samples of this study are selected by using purposive sampling method and 558 data are taken. This research used a modified Jones model to calculate discretionary accruals values. This research used multiple regression analysis to determine the relationship between the factors and earnings management. The result of this study shows that return on assets, leverage, and free cash flow have effect on earnings management. On the other hand, firm size, audit quality, audit committee, institutional ownership do not have significant effect on 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 The impact of audit quality, corporate governance, and company characteristics on earnings management

2021 ◽  
Vol 11 (1) ◽  
pp. 107-112
Author(s):  
Yousef Shahwan
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Free Cash Flow ◽  
Statistical Testing ◽  
Return On Assets ◽  
Industrial Firms ◽  
The Impact

This study aims to investigate empirically how the characteristics of the firm; the audit quality and the corporate governance impact the management of earnings. The population employed in this study is industrial firms listed on the Amman Stock Exchange between 2017 and 2019. The method of sampling employed in this study is purposive sampling. 39 firms are analyzed, with 117 items of data being achieved. Also, this study applies statistical testing via multiple regression. The findings show that sales growth, free cash flow, financial leverage, and return on assets all have an impact on earnings management. Meanwhile, other factors such as audit quality, firm size, audit committee, the board size, institutional ownership, and managerial ownership, have not to impact on earnings management.

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

2020 ◽  
Vol 5 (3) ◽  
pp. 87-94
Author(s):  
Mayang Sekar Pembayun Khamisan ◽  
Silvy Christina
Keyword(s):  
Corporate Governance ◽  
Firm Size ◽  
Financial Distress ◽  
Audit Committee ◽  
Audit Quality ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Return On Assets ◽  
Tax Loss

Objective – This study aims to obtain empirical evidence about the factors that influence tax avoidance. The independent variables tested in this research were financial distress, tax loss carried forward, institutional ownership, managerial ownership, audit committee, audit quality, firm size, and return on assets with e Cash Effective Tax Rate (CETR) used as a dependent variable in this study. Methodology/Technique – 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 analyses to test the hypothesis. Findings – This research provides the result that financial distress, tax loss carried forward, institutional ownership, managerial ownership, audit committee, audit quality, firm size, and return on assets have no influence on tax avoidance. Originality/value – The difference between this study and previous studies is that this study focuses on financial distress, tax loss carried forward and corporate governance. Type of Paper: Empirical. JEL Classification: M41, M49. Keywords: Financial Distress, Tax Loss Carried Forward, Institutional Ownership, Managerial Ownership, Audit Committee, Audit Quality, Firm Size, Return on Assets, Cash Effective Tax Rate. Reference to this paper should be made as follows: Khamisan, M.S.P; Christina, S. 2020. Financial Distress, Tax Loss Carried Forward, Corporate Governance and Tax Avoidance, Acc. Fin. Review, 5 (3): 87 – 94. https://doi.org/10.35609/afr.2020.5.3(1)

scholarly journals PENGARUH GOOD CORPORATE GOVERNANCE DAN RETURN ON ASSETS TERHADAP TAX AVOIDANCE

AKUNTABILITAS ◽  
2019 ◽  
Vol 13 (2) ◽  
pp. 141-154
Author(s):  
Jefri Jefri ◽  
Yaumil Khoiriyah
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Audit Quality ◽  
Stock Exchange ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Managerial Ownership ◽  
Manufacturing Companies ◽  
Return On Assets ◽  
Good Corporate Governance

The objective of this research was to prove empirically the factors affecting the good corporate governance and the return on assets onthe tax avoidance of the manufacturing companies indexed in the Indonesia Stock Exchange in the period of 2014-2016. The independent variables of this research werethe institutional ownership, the managerial ownership, the proportion of independent board of Commissioners, the audit committee, the audit quality, the return on assets; while, the dependent variable of this research wasthe tax avoidance. The data collectingtechnique used in this research was the purposive sampling. The number of sample used in this research was 57 manufacturing companies indexed in the Indonesia Stock Exchange in 2014-2016. The data analysis technique used in this research was the multiple linear regressionby using IBM SPSS Version 20 program. The result of this research showed that the managerial ownership, the audit quality, and the return on assets affected the tax avoidance; while, the institutional ownership, the proportion of independent board of commissioners, and theaudit committee did not have any effect on the tax avoidance

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 The Effect of Good Corporate Governance, Free Cash Flow, and Tax Planning on Earnings Management

At-Taqaddum ◽  
2021 ◽  
Vol 13 (1) ◽  
pp. 1-20
Author(s):  
Ratno Agriyanto ◽  
Azizah Setiyawati ◽  
Dessy Noor Farida
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Cash Flow ◽  
Audit Committee ◽  
Negative Impact ◽  
Institutional Ownership ◽  
Tax Planning ◽  
Free Cash Flow ◽  
Assessment Tools ◽  
Good Corporate Governance

Earnings is one of the management assessment tools as a form of responsibility to investors, thus allowing opportunistic behavior to do earnings management. The study aims to determine the effect of good corporate governance, free cash flow, and tax planning on earnings management. In this study, the independent variables are the board of independent commissioners, institutional ownership, audit committee, free cash flow, and tax planning. The dependent variable is earnings management which is projected through discretionary accruals using the modified Jones model. Data collected in this study used the documentation method and library method. The object of this study is state-owned companies listed in the 2014-2018 period of the Indonesian Stock Exchange. The sampling technique used purposive sampling, and the analysis technique used multiple linear. This study shows that a partial board of independent commissioners, institutional ownership, audit committee, and tax planning do not significantly affect earnings management. In contrast, free cash flow has a significant negative impact on earnings management. Therefore, implementing good corporate governance, free cash flow, and tax planning which is not just to fulfill existing regulations, will increase performance and company value and trust of investors.

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