scholarly journals PEMETAAN PERILAKU OPPORTUNISTIK TERHADAP PROSPEK PERUSAHAAN MENDATANG MELALUI AKTIVITAS MANIPULASI

2020 ◽  
Vol 3 (2) ◽  
pp. 55-86
Author(s):  
Muljanto Siladjaja ◽  
Markonah Markonah
Keyword(s):  
Financial Reporting ◽  
Dividend Policy ◽  
Market Value ◽  
Discretionary Accruals ◽  
Communication Process ◽  
Good News ◽  
Future Market ◽  
Positive Perception ◽  
Accruals Quality ◽  
The Future

This research have tested out the influence of opportunistics’s behaviour on the fluctuation of market price  by using the manipulation activity later this research provide the mapping between investor’s decision with accruals quality in financial reporting. Because of  the usefullness information financial reporting, so that the investor can done the predicting the future prospect by estimating the growth rate, so it give the feedback to management. The dividend policy can be used s as the communication process, management have proclivity  to diseminate that the prospect had been better in the future. The previous research had tested out the using of accruals had been the negative perspective on investor’s view, so the research have developed out the estimation of discretionary accruals quality as an critical measurement of reducing the opportunistic behaviour. This research used the statistics model by developing the the multiple regresion by developing out  the new indicators for the estimated price, that based on earnings and equity as independent variables. This research have the causal approach by using the purposive sampling on the manufacturing industry by using the real based manipulation activity, so the manipulation activity had been treated as a proxy for grouping the patern of opportunistics behaviour. By using future market value based on earning and equity, the investor have enough capability in detecting the earning management, the investor have calculated the net market value in predicting the company’s prospect in future. In this research have developed out the accruals quality literature by mapping the feedback of interaction in decision tree model with Teorema Bayes. The positive perception of dividend policy show out the investor involvement in formulating cooperate operational policy. The investor’s positive perception can be formed when they found “the good” news by detecting out the negative manipulation and high accruals quality. It has paved the investor out the way in controlling and monitoring the company’s performance for the better prospect one. As novelty, this research have created out the new measurement in earning quality (by modifying a new formula for discretionary accruals quality) and future value market (based on earnings and equity). By re-shaping the new paradigms of the financial statement’ concept as decision usefulness information, this research have created out the predictive model in describing out the investor’s perception  and the asymmetric information area in efficient market.

scholarly journals PEMETAAN PERILAKU OPPORTUNISTIK TERHADAP PROSPEK PERUSAHAAN MENDATANG MELALUI AKTIVITAS MANIPULASI

2020 ◽  
Vol 3 (2) ◽  
pp. 195-226
Author(s):  
Muljanto Siladjaja ◽  
Markonah Markonah
Keyword(s):  
Financial Reporting ◽  
Dividend Policy ◽  
Market Value ◽  
Discretionary Accruals ◽  
Communication Process ◽  
Good News ◽  
Future Market ◽  
Positive Perception ◽  
Accruals Quality ◽  
The Future

This research have tested out the influence of opportunistics’s behaviour on the fluctuation of market price  by using the manipulation activity later this research provide the mapping between investor’s decision with accruals quality in financial reporting. Because of  the usefullness information financial reporting, so that the investor can done the predicting the future prospect by estimating the growth rate, so it give the feedback to management. The dividend policy can be used s as the communication process, management have proclivity  to diseminate that the prospect had been better in the future. The previous research had tested out the using of accruals had been the negative perspective on investor’s view, so the research have developed out the estimation of discretionary accruals quality as an critical measurement of reducing the opportunistic behaviour. This research used the statistics model by developing the the multiple regresion by developing out  the new indicators for the estimated price, that based on earnings and equity as independent variables. This research have the causal approach by using the purposive sampling on the manufacturing industry by using the real based manipulation activity, so the manipulation activity had been treated as a proxy for grouping the patern of opportunistics behaviour. By using future market value based on earning and equity, the investor have enough capability in detecting the earning management, the investor have calculated the net market value in predicting the company’s prospect in future. In this research have developed out the accruals quality literature by mapping the feedback of interaction in decision tree model with Teorema Bayes. The positive perception of dividend policy show out the investor involvement in formulating cooperate operational policy. The investor’s positive perception can be formed when they found “the good” news by detecting out the negative manipulation and high accruals quality. It has paved the investor out the way in controlling and monitoring the company’s performance for the better prospect one. As novelty, this research have created out the new measurement in earning quality (by modifying a new formula for discretionary accruals quality) and future value market (based on earnings and equity). By re-shaping the new paradigms of the financial statement’ concept as decision usefulness information, this research have created out the predictive model in describing out the investor’s perception  and the asymmetric information area in efficient market.

scholarly journals The impact of innate accruals quality on the future market value moderated by dividend policy

2020 ◽  
Vol 5 (2) ◽  
pp. 269-283
Author(s):  
Muljanto Siladjaja ◽  
Yuli Anwar
Keyword(s):  
Growth Rate ◽  
Dividend Policy ◽  
Market Price ◽  
Market Value ◽  
Future Market ◽  
Observation Data ◽  
Constant Growth Rate ◽  
Content Type ◽  
Accruals Quality ◽  
The Impact

PurposeThe purpose of this study is to test and prove how the quality of innate accruals can make a significant contribution to the prospect of future market value for manufacturing industries.Design/methodology/approachThis research used multiple regression method by gathering all observation data on a go public company in the industrial manufacturing sector.FindingsThe results of this test can show that the dividend policy helps reduce the use of accruals to increase investor perceptions about the prospects of the company's future period, especially the value of earnings informativeness, including valid information about the actual fundamental conditions. These results reflect high innate accruals quality, so the use of low accruals, especially in reporting earnings.Research limitations/implicationsThis test uses a measurement of a constant growth rate with the calculation of the indicator g in the next five-year period, and the proof has secondary data abnormalities reflecting a very high level of variation in the use of accruals. As an implication of the data that is not normal, it causes a large amount of data pruning through outlier tests. Samples that qualify for processing are 180 from 384 data.Originality/valueBy calculating the value of the dividend payout with the growth rate, the estimated future market price can be done with reasonable accuracy.

scholarly journals The impact of CEOs’ accounting backgrounds on earnings management and conservatism

2017 ◽  
Vol 10 (1) ◽  
pp. 4-24
Author(s):  
Nan Hu ◽  
Rong Huang ◽  
Xu Li ◽  
Ling Liu
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Discretionary Accruals ◽  
Accounting Conservatism ◽  
Policy Implications ◽  
Good News ◽  
Content Type ◽  
Accounting Research ◽  
Significant Difference ◽  
The Impact

Purpose Existing literature in experimental accounting research suggests that accounting professionals and people with accounting backgrounds tend to have a lower level of moral reasoning and ethical development. Motivated by these findings, this paper aims to examine whether chief executive officers (CEOs) with accounting backgrounds have an impact on firms’ earnings management behavior and the level of accounting conservatism. Design/methodology/approach The authors classify CEOs into those with and without accounting backgrounds using BoardEx data. Using discretionary accruals from several different models, they do not find that CEOs with accounting backgrounds are more likely to engage in income-increasing accruals. However, the authors find that CEOs with accounting backgrounds exhibit lower levels of conservatism, proxied by C-scores and T-scores (Basu, 1997). This finding suggests that CEOs with accounting backgrounds recognize bad news more quickly than good news, consistent with the accounting principle of “anticipating all losses but anticipating no gains”. Findings The authors show that firms whose CEOs have accounting backgrounds exhibit lower levels of accounting conservatism. However, these firms do not exhibit higher levels of income-increasing discretionary accruals. This study documents the impact of CEOs’ educational backgrounds on firms’ accounting choices and confirms prior findings in experimental accounting research using large sample archival data. Originality/value This paper is the first study that investigates the impact of CEOs’ accounting backgrounds on firms’ financial reporting policy. The findings may have some policy implications. If accounting backgrounds of CEOs can make a significant difference on firms’ behavior, it is reasonable to make CEOs accountable for the quality of financial reporting. This paper is one of the first to empirically test inferences drawn by experimental accounting research. There has been a gap between archival and experimental accounting studies. The authors propose that interesting research questions can be addressed by filling in such a gap.

scholarly journals The Mapping Of Investor Perception On The High Financial Reporting Quality

2021 ◽  
Vol 6 (1) ◽  
pp. 1
Author(s):  
Muljanto Siladjaja ◽  
Yuli Anwar
Keyword(s):  
Financial Reporting ◽  
Information Quality ◽  
Dividend Policy ◽  
Earnings Quality ◽  
Accounting Information ◽  
Reporting Quality ◽  
Financial Reporting Quality ◽  
Future Market ◽  
Maximum Utility ◽  
Accounting Information Quality

This research mapped investor perception on high accounting information quality, particularly the accurate prediction model for future returns. The high financial reporting quality indicates the company's prospective improvement in the future under the right management. This positively affects market price fluctuation, where the investor has minimum distortion on accounting information and low risk. The obedience to accounting standards and tax regulation illustrates actual earnings in reducing agency cost's volatile movement. This study used questionnaires to gather information. The respondents were related parties with dominant influence in investment, specifically 384 samples. Through the structural equation model, the mapping of earnings quality, future market value, and dividend policy played a critical role in minimizing misleading information and improving accounting information quality. The high financial reporting quality indicates the managements' obedience in maximum implementation of regulations with continuous improvements. In this regard, the dividend policy has significantly contributed to the improvement of the earnings quality. The Decision Tree Model was used in mapping investor perception on earnings quality to estimate the high probability of a long or short position for their maximum utility. When the dividend policy is used as a mandatory indirect obligation, the management should provide high accounting information quality.

Accruals Quality and Internal Control over Financial Reporting

2007 ◽  
Vol 82 (5) ◽  
pp. 1141-1170 ◽  
Author(s):  
Jeffrey T. Doyle ◽  
Weili Ge ◽  
Sarah McVay
Keyword(s):  
Financial Reporting ◽  
Internal Control ◽  
Discretionary Accruals ◽  
Cash Flows ◽  
Internal Controls ◽  
Earnings Persistence ◽  
Firm Characteristics ◽  
Material Weakness ◽  
Material Weaknesses ◽  
Accruals Quality

We examine the relation between accruals quality and internal controls using 705 firms that disclosed at least one material weakness from August 2002 to November 2005 and find that weaknesses are generally associated with poorly estimated accruals that are not realized as cash flows. Further, we find that this relation between weak internal controls and lower accruals quality is driven by weakness disclosures that relate to overall company-level controls, which may be more difficult to “audit around.” We find no such relation for more auditable, account-specific weaknesses. We find similar results using four additional measures of accruals quality: discretionary accruals, average accruals quality, historical accounting restatements, and earnings persistence. Our results are robust to the inclusion of firm characteristics that proxy for difficulty in accrual estimation, known determinants of material weaknesses, and corrections for self-selection bias.

Pengaruh Budaya Terhadap Akuntansi, Auditing Dan Praktik Akuntansi Internasional

2016 ◽  
Vol 3 (1) ◽  
pp. 78-95
Author(s):  
Priyastiwi Priyastiwi
Keyword(s):  
Cultural Values ◽  
Leadership Style ◽  
Financial Reporting ◽  
National Level ◽  
Deep Understanding ◽  
Cultural Dimensions ◽  
Financial Disclosure ◽  
Cross Cultural Differences ◽  
The Future ◽  
The Impact

The purpose of this article is to provide the basic model of Hofstede and Grays’ cultural values that relates the Hofstede’s cultural dimensions and Gray‘s accounting value. This article reviews some studies that prove the model and develop the research in the future. There are some evidences that link the Hofstede’s cultural values studies with the auditor’s judgment and decisions by developing a framework that categorizes the auditor’s judgments and decisions are most likely influenced by cross-cultural differences. The categories include risk assessment, risk decisions and ethical judgments. Understanding the impact of cultural factors on the practice of accounting and financial disclosure is important to achieve the harmonization of international accounting. Deep understanding about how the local values may affect the accounting practices and their impacts on the financial disclosure are important to ensure the international comparability of financial reporting. Gray’s framework (1988) expects how the culture may affect accounting practices at the national level. One area of the future studies will examine the impact of cultural dimensions to the values of accounting, auditing and decision making. Key word : Motivation, leadership style, job satisfaction, performance

Discretionary Accruals in Italian Private Firms and Non-Linear Bank Loan Granting

2017 ◽  
pp. 83-99
Author(s):  
Elisabetta Mafrolla ◽  
Viola Nobili
Keyword(s):  
Financial Reporting ◽  
Banking System ◽  
Regulatory System ◽  
Discretionary Accruals ◽  
Bank Loans ◽  
Bank Loan ◽  
Banking Union ◽  
Private Firms ◽  
European Banking Union

This paper investigates whether and at what extent private firms reduce the quality of their accruals in order to signal a better portrait to the bank and obtain new or larger bank loans. We measure earnings discretionary accruals of a sample of Italian private firms, testing whether new and larger bank loans are associated with a higher (lower) quality of earnings in borrowers' financial reporting. We study bank loan levels and changes and how they impact discretionary accruals and found that, surprisingly, private firms' discretionary accruals are systematically positively affected by an increase in bank loans, although they are negatively affected by the credit worthiness rating assigned to the borrowers. We find that the monitoring role of the banking system with regard to the adoption of discretionary accruals is effective only when the loan is very large. This paper may have implications for policy-makers as it contributes to the understanding of the shortcomings of the banking regulatory system. This is an extremely relevant issue since the excessive amount of non-performing loans held by Italian banks recently threatened the stability of the European Banking Union as a whole.

THE FUTURE OF CORPORATE REPORTING REFLECTIONS ON THE CRITICAL QUESTION OF THE NECESSITY OF FORWARD-THINKING PHILOSOPHY AND CULTURE OF REPORTING WORLDWIDE

2018 ◽  
Vol 28 (5) ◽  
pp. 1455-1466
Author(s):  
Hristina Oreshkova
Keyword(s):  
Financial Reporting ◽  
Biological Diversity ◽  
Radical Change ◽  
Green Economy ◽  
Critical Question ◽  
Corporate Reporting ◽  
Global Problems ◽  
The Future ◽  
Strategic Goals

Over the most recent decades corporate reporting has proved to be essential to achieving the strategic goals of humankinds and the ever-increasing necessity of truthful information and transparency. Corporate reporting is a socially significant process and practice. The quality of corporate reporting reflects the degree of relevance of the manner enterprises and businesses communicate with the surrounding world and environment (natural or industrial) and millions of people concerned – societies, present and future generations, employees, workers, and many other people, and other living beings. On most authoritative international scientific forums – symposia, conferences, congresses, assemblies, summit meetings and events, conducted in Europe and worldwide, it is pompously declared that corporate reporting should provide useful and reliable information both financial and non-financial one. The responsibilities of accountability and stewardship seem out to be of great importance to the fulfillment of the strategic goals of our centuries.The belief of the author is that the simultaneous analysis of the global problems challenging humankinds such as climate changes, destruction of biological diversity on the Planet, the matter of the necessity of actions of creating Green Ethics and Green Economy worldwide, the increasing need for combined and well-coordinated efforts in the combat supporting the eradication of poverty globally, and the relevance of corporate reporting to solving these unique problems the mankind is facing, would highlight and confirm their intricate interrelation (the key aim of the present research), consequently rendering the debate on the future of corporate reporting more meaningful and constructive. The debate would most probably promote the standpoint we personally maintain, which is also endorsed by an increasing number of supporters in Europe and around the world, implying in particular that apart from a process of unification and reduction of essential differences in the international financial reporting, what is also necessary is the radical change in the philosophy and culture of corporate reporting and presentation. Undeniably, it includes revealing of the financial state and the substantial effects and impacts of the businesses operating activities in a straightforward manner, as complete insights and understanding of the broader and far-reaching goals to which the corporate reporting must be subordinated – at present and in the long-lasting future.

The Valuation Relevance of Reversing Deferred Tax Liabilities

2004 ◽  
Vol 79 (2) ◽  
pp. 437-451 ◽  
Author(s):  
David A. Guenther ◽  
Richard C. Sansing
Keyword(s):  
Discount Rate ◽  
Firm Value ◽  
Market Value ◽  
Present Value ◽  
Depreciation Rate ◽  
The Future ◽  
Deferred Tax Liabilities ◽  
Deferred Tax ◽  
Tax Depreciation ◽  
Depreciation Methods

This paper compares two attributes of a deferred tax liability (DTL) that arise from differences in book and tax depreciation methods. The first attribute is the effect of the DTL on the market value of the firm. The second is the length of time between when the asset is placed into service and when the DTL associated with that asset begins to reverse. The paper shows that a decrease in the time it takes for the DTL to begin to reverse is neither necessary nor sufficient for the value of the DTL to increase. It also shows that the value of the DTL is not equal to the present value of the future deferred tax expense. The effect of one dollar of DTL on firm value depends only on the tax depreciation rate and the discount rate.

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