scholarly journals COMPARISON OF EARNINGS MANAGEMENT IN EACH NON-FINANCIAL SECTOR OF BUMN LISTED ON THE IDX

2021 ◽  
Vol 2 (2) ◽  
pp. 133-152
Author(s):  
Shintya Fransiska
Keyword(s):  
Earnings Management ◽  
Sampling Method ◽  
Management Practices ◽  
Financial Sector ◽  
Discretionary Accruals ◽  
The Other ◽  
Average Level ◽  
Construction Sector ◽  
Jones Model ◽  
The Difference

This research was conducted to determine whether there are differences in each non-financial sector of BUMN listed on the IDX in carrying out earnings management practices. The research sample includes a saturated sampling method. The research sample consisted of 19 companies were divided into 8 sectors. The amount of data used is 225 data from 2006-2019. Earnings management will be measured using discretionary accruals with a Modified Jones model. The hypothesis was tested using the Kruskal Wallis test and followed by the Dunn test. The results show that there are differences in the level of earnings management in each non-financial sector of BUMN listed on the IDX. The difference is due to the higher level of earnings management carried out by the construction sector compare to the other sectors. Furthermore, the metal sector has the lowest average level of earnings management practices.

scholarly journals Earnings management and income tax evidence from Greece

2015 ◽  
Vol 12 (2) ◽  
pp. 511-529 ◽  
Author(s):  
Eftychia Kapoutsou ◽  
Christos Tzovas ◽  
Constantinos Chalevas
Keyword(s):  
Earnings Management ◽  
Significant Relationship ◽  
Income Tax ◽  
Management Practices ◽  
Management Accounting ◽  
Discretionary Accruals ◽  
Earning Management ◽  
Total Current ◽  
Jones Model ◽  
Deferred Tax

The aim of this study is to examine the question of earnings management and, specifically, how this relates to taxation. In order to determine whether there is a correlation between earnings management and taxation, we investigate the discretionary accruals aspect of total accruals, i.e. the portion of profits which can be affected by management accounting choices, as calculated by the Jones (1991) model and the modified Jones model (Dechow et. al, 1995). Furthermore, we examine to what degree a correlation may exist between discretionary accruals and tax income (consisting of current and deferred tax). Our empirical findings demonstrate a statistically significant relationship between the levels of discretionary accruals and of total, current and deferred tax. This suggests that tax in general may be employed as a means to facilitate earnings management. The findings of this study suggest that IFRS provisions regarding taxation provide firms with a scope to get involved in earning management practices

scholarly journals Audit Committee Characteristics and Earnings Management Practices

2019 ◽  
Vol 22 (1) ◽  
Author(s):  
Melinda Lydia Nelwan ◽  
Billy Ivan Tansuria
Keyword(s):  
Earnings Management ◽  
Audit Committee ◽  
Management Practices ◽  
The Other ◽  
Manufacturing Companies ◽  
Management Models ◽  
Other Hand ◽  
Financial Expertise ◽  
Jones Model

This study revisits the effectiveness of the audit committee independence and expertise in preventing earnings management practices.  Studies in other countries that have relatively stricter regulations showed the audit committee independence was effective to prevent earnings management.  Arguably, the practice may be different in Indonesia whose regulation is considerably more lenient.  On the other hand, studies related to audit committee expertise is rarely done in Indonesia.  This study utilized two of the earnings management models namely the Modified Jones Model and the Performance-Adjusted Modified Jones Model.  This study was limited to Indonesian listed manufacturing companies from 2009 to 2011.  Consistent for both earnings management models, the results show that audit committee independence is effective to prevent earnings management.  However, the results showed that audit committee expertise did not affect earnings management practices.  Although only approximately 39 percent of the audit committee members in Indonesian listed manufacturing companies were independent, the existence of those independence members enabled the audit committee to effectively conduct its monitoring role, especially in preventing earnings management.  Nevertheless, accounting and/or financial expertise might not determine the effectiveness of the audit committee’s monitoring role.

scholarly journals The Impact of Financial Crisis on Earnings Management in Nonfinancial Listed Firms: Evidence from Jordan

2020 ◽  
Vol 15 (5) ◽  
pp. 168
Author(s):  
Yahia M. Al-Mughrabi
Keyword(s):  
Financial Crisis ◽  
Earnings Management ◽  
Management Practices ◽  
Global Financial Crisis ◽  
Discretionary Accruals ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
Listed Firms ◽  
Jones Model ◽  
The Impact

This paper studies earnings management in Jordan during the global financial crisis. It addresses mainly the question of whether or not financial crisis has an impact on discretionary accruals, using the modified Jones model (1995) for estimating discretionary accruals. By applying Ordinary Least Squares regression model on a sample of 71 nonfinancial listed firms during the period of 2005-2012, I find a conclusive evidence that Jordanian nonfinancial listed firms did not engage in a greater level of earnings management during the financial crisis period. In addition, larger firms are less involved in earnings management practices compared to smaller firms. Moreover, the results suggest a negative significant impact of operating cash flow on discretionary accruals, while it fails to connect current year losses with discretionary accruals. However, the findings indicate that firm’s leverage is positively and significantly associated with discretionary accruals. Overall, the empirical results provided evidence that earnings management practices in Jordanian nonfinancial sectors are relatively small, even smaller in services sector, which raise questions about the validity of the modified Jones model and whether or not different models (such as Deangelo, 1986) should be used in future studies regarding earnings management.

scholarly journals MANAJEMEN LABA AKRUAL DAN RIIL SEBELUM DAN SETELAH ADOPSI WAJIB IFRS DI UNI EROPA

ETIKONOMI ◽  
2015 ◽  
Vol 12 (1) ◽  
Author(s):  
Yayu Putri Senjani
Keyword(s):  
Earnings Management ◽  
Sampling Method ◽  
Management Practices ◽  
Discretionary Accruals ◽  
Production Costs ◽  
Real Earnings Management ◽  
Earning Management ◽  
Paired Sample ◽  
Ifrs Adoption ◽  
Before And After

This study aims to provide empirical evidence on earnings management practices in the Europe Union in three years before and after the mandatory IFRS adoption. Earning management practices what are observed is accrual earnings management (the level of discretionary accruals) and real earnings management (abnormal cash flow from operation and abnormal production costs). Data is retrieved from OSIRIS database by using the purposive sampling method and was tested with paired sample t-test. The results showed empirically that there is no difference between accrual and real earnings management in the period before and after the mandatory IFRS adoption. Other results also showed that accruals and real earnings management are positively correlate for abnormal production costs after the mandatory IFRS adoptionDOI: 10.15408/etk.v12i1.1905

scholarly journals MANAJEMEN LABA BERBASIS AKRUAL DAN RIIL SEBELUM DAN SETELAH KONVERGENSI IFRS PADA PERUSAHAAN MANUFAKTUR TERDAFTAR DI BEI

InFestasi ◽  
2016 ◽  
Vol 12 (1) ◽  
pp. 36
Author(s):  
Ni Made Putri Utami ◽  
Endar Pituringsih ◽  
Biana Adha Inapty
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Sampling Method ◽  
Management Practices ◽  
Financial Statements ◽  
Discretionary Accruals ◽  
Production Costs ◽  
Real Earnings Management ◽  
Manufacturing Companies ◽  
Before And After

<p class="Bodytext70">This study aims to provide empirical evidence on earnings management practices on manufacturing companies listed in Indonesian Stock Market before and after IFRS convergence (2007-2011). Accrual earnings management (the level of discretionary accruals) and real earnings management (abnormal cash flow from operation, abnormal production costs, and abnormal discretionary expenses) are observed to analyze earnings management practices. Data was retrieved using the purposive sampling method and tested with paired sample t-test and correlation test. The results empirically showed that there was no difference between accrual earnings management before and after the IFRS convergence. Additionally, real earnings management also showed that there was no difference between before and after the IFRS convergence. Other results also showed that there was no relationship between management interchangeable accrual earnings and real earnings management after convergence of IFRS. The implications of this research provided information to the users of financial statements, especially shareholders and investors to increase the awareness of the opportunities of accrual earnings management and real earnings management through manipulation of the cash flow, sales and production cost by management.</p>

scholarly journals PENGARUH HARI PERDAGANGAN TERHADAP RETURN SAHAM (PENGUJIAN THE DAY OF THE WEEK, WEEK-FOUR EFFECT, DAN ROGALSKI EFFECT) PADA PERUSAHAAN KEUANGAN DI BURSA EFEK INDONESIA PERIODE 2017

2020 ◽  
Vol 9 (1) ◽  
pp. 120
Author(s):  
Rizki Khoiri ◽  
Deny Ismanto
Keyword(s):  
Data Analysis ◽  
Stock Returns ◽  
Sampling Method ◽  
Stock Exchange ◽  
Financial Sector ◽  
The Other ◽  
Purposive Sampling ◽  
Day Of The Week ◽  
The Difference ◽  
Positive Return

This study aims to examine (1) the difference in average daily return in one week (2) test the occurrence of negative returns on the fourth and fifth weeks of Monday on financial sector stock returns on the Indonesia Stock Exchange in the period 2017 and (3) test whether a positive return and tends to be larger than other months on Monday in April. The population in this study were financial sector companies listed on the Indonesia Stock Exchange. Samples were taken by purposive sampling method. Samples consisted of 6 financial sector companies listed on the Indonesia Stock Exchange and included in LQ45 during the 2017 period. The results of data analysis show that trading days have no significant effect on stock returns. There is no negative return on the fourth and fifth week of Monday on stock returns and positive returns are found and tend to be greater than the other months on Monday in April on financial sector stock returns on the Indonesia Stock Exchange in the 2017 period.

scholarly journals Earnings Management di Indonesia: Studi Empiris pada Periode Sebelum dan Setelah Terlaksananya Program Tax Amnesty

2019 ◽  
Vol 2 (2) ◽  
Author(s):  
Raden Arief Wibowo
Keyword(s):  
Earnings Management ◽  
Management Practices ◽  
Stock Exchange ◽  
Management Practice ◽  
Discretionary Accruals ◽  
Great Effort ◽  
Absolute Value ◽  
Tax Amnesty ◽  
The Absolute ◽  
The Difference

This study aims to examine earnings management practice in the Indonesian companies, before, during, and after the tax amnesty program, and compare it through testing the difference in the absolute value of discretionary accruals before, during, and after the tax amnesty program. To conduct this analysis, this study uses 42 samples of non-financial companies listed on the Indonesia Stock Exchange (IDX) from 2015 to 2018. Data from all company samples are arranged in the form of Discretionary Accruals, Non-Discretionary Accruals, and Absolute Discretionary Accruals. The results indicate that there are earnings management practices before the tax amnesty program, and it is greater during the tax amnesty, and smaller after the tax amnesty. Based on the results of different tests, this study also shows that there are differences in the value of Absolute Discretionary Accruals in the tax amnesty program (AbsPre) and Absolute Discretionary Accruals after the tax amnesty program (AbsPost), so the hypothesis states that there is difference between earnings management before the tax amnesty program and after the tax amnesty program, can be accepted. In addition, the amount of Absolute Discretionary Accruals before the tax amnesty program (AbsPre) which tends to be higher 68.37% or almost 70%, shows that there is a great effort made by the management of the company in order to make the company looks outperformed to the investors.

scholarly journals PENGARUH REAKSI PASAR ATAS PENGUMUMAN INFORMASI LABA PERUSAHAAN BERKAITAN DENGAN MANAJEMEN LABA PADA PERUSAHAAN MANUFAKTUR DI BURSA EFEK INDONESIA

2017 ◽  
Vol 11 (2) ◽  
Author(s):  
Theresia Sri Hastuti ◽  
Henilia Yulita
Keyword(s):  
Sampling Method ◽  
Management Practices ◽  
Market Reaction ◽  
Investment Decision ◽  
Relevant Information ◽  
Discretionary Accruals ◽  
Earning Management ◽  
Financial Report ◽  
Convenience Sampling ◽  
The Difference

<p>Financial report is an important factor for inventors to make investment decision in capital market. Publicly financial report which has relevant information will be reacted by market player. Many investors and other users of financial report do not pay attention to the process of publishing financial report, so it pushes the emergence of dysfunctional behaviours like earning management practices.<br />The research aims to analyze the difference of market reaction between:1) earning management companies and non-earning management companies; 2) income-decreasing discretionary accruals companies and income-increasing discretionary accruals companies.Population of this research is 130 manufactured companies listed in JSX during 2009-2010. Using convenience sampling method, 49 companies were taken to become final samples for each period. The result with two independent samples test Kruskal Walles χ (sign 5%) shows that there was no difference of market reaction between earning management companies and non-earning management companies (χ 0,58989 dan 0,03137), and neither was there between income-decreasing discretionary accruals companies and income-increasing discretionary accruals companies (χ 0,735 dan 2,82767).<br />Keywords : Earning Management, Market Reaction.</p>

Sustainability measures and earnings management: evidence from Greek municipalities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sandra Cohen ◽  
Ioanna Malkogianni
Keyword(s):  
Earnings Management ◽  
Local Governments ◽  
Management Practices ◽  
Discretionary Accruals ◽  
Sustainability Indicators ◽  
Financial Sustainability ◽  
Content Type ◽  
Final Sample ◽  
Jones Model ◽  
Corroborative Evidence

PurposeThis study analyses the engagement of Greek municipalities in earnings management activities through the manipulation of their accrual accounts. It aims at identifying whether discretionary accruals are associated with certain financial sustainability measures calculated through financial statement numbers.Design/methodology/approachTo test the hypotheses, the annual financial data of Greek municipalities for the period 2011–2018 are used. The final sample corresponds to an unbalanced panel data sample that includes 1,565 yearly observations. Total accruals and discretionary accruals modelling are based both on the aggregate Jones model and the modified Jones model.FindingsThe findings provide evidence that Greek municipalities engage in earnings management practices through the manipulation of accruals. Moreover, there is corroborative evidence that financial sustainability indicators, such as indebtedness, liquidity and efficiency ratios, are related to the magnitude of earnings management, while earnings management behaviour during the year preceding the municipal elections is more intense.Originality/valueThe paper expands the literature in earnings management in local governments by analysing the relation of financial sustainability indicators to this behaviour.

scholarly journals HUBUNGAN ANTARA PROFITABILITAS TERHADAP EARNINGS MANAGEMENT PADA SEKTOR UTAMA INDONESIA DI BEI TAHUN 2008-2011

CALYPTRA ◽  
2020 ◽  
Vol 5 (2) ◽  
pp. 92
Author(s):  
Cindy Kristina Hariyono
Keyword(s):  
Earnings Management ◽  
Economic Crisis ◽  
Management Practices ◽  
Discretionary Accruals ◽  
The Other ◽  
Net Income ◽  
The Relationship

Abstrak - Perusahaan yang mengalami kerugian memiliki kecenderungan melakukan upaya yang dapat memberikan manfaat bagi perusahaan, salah satunya dengan melakukan earnings management. Penelitian ini bertujuan untuk mengetahui hubungan antara profitabilitas terhadap earnings management pada perusahaan yang mengalami kerugian saat krisis ekonomi Eropa. Populasi dalam penelitian ini adalah seluruh perusahaan di 9 sektor utama yang terdaftar di BEI dan memiliki net income negatif pada tahun 2008-2011. Perhitungan profitabilitas dalam penelitian ini menggunakan variabel ROA, OPM, DE, OCF, dan Size, sedangkan pendeteksian earnings management menggunakan discretionary accruals dengan menggunakan model Jones (1991). Hasil penelitian ini menunjukkan bahwa terdapat 2 sektor utama yang melakukan earnings management pada saat mengalami kerugian, sedangkan 7 sektor lainnya tidak melakukan earnings management pada saat mengalami kerugian. Kata kunci : profitabilitas, earnings management, krisis ekonomi, sektor utama Abstract - Losses’ companies have a tendency to make efforts that could provide benefits for the company, one of them by performing an earnings management. This study aims to determine the relationship between the profitability of the earnings management practices in the companies have losses during the economic crisis of Europe. The population in this study are all companies in 9 major sectors listed on the BEI and have a negative net income in 2008-2011. For calculate of profitability in this study using ROA, OPM, DE, OCF, and Size, while for detecting earnings management using discretionary accruals by using the model of Jones (1991). These results indicate that there are two main sectors that perform earnings management when the companies have losses, while the other sectors did not perform earnings management when they have losses. Keywords : profitability, earnings management, the economic crisis, main sector

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