The Effect Of Non-Performing Financing (NPF) On Earnings Management Practices In Islamic And Conventional Bank

This study aims to examine the effect of Non-Performing Financing (NPF) to Earnings Management Practices in Islamic Bank and Conventional Bank. Earnings management procedures are still regarded legal when they do not conflict with General Accepted Accounting Principles (GAAP), but when viewed from an Islamic perspective, particularly in Islamic business ethics and sharia management, earnings management practices are regarded to be incompatible with the principles contained in Islamic business ethics and sharia management.The data collection of this research uses documentation technique from financial reports of Islamic bank and conventional bank. The analytical method which is used in this study is panel data regression. This study found that the Non-Performing Financing (NPF) have a significant positive effect with Earnings Management. For the implication, investors and other financial statements customers are anticipated to be more cautious in evaluating financial statements. For business institutions, especially sharia business institutions, the principles of Islamic business ethics should always be instilled in carrying out their operations.

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The “Quantitative Discretion Index”: A New Business Ethics Tool to Prevent Opportunistic Earnings Management Practices

Journal of Management and Sustainability ◽

10.5539/jms.v10n1p96 ◽

2020 ◽

Vol 10 (1) ◽

pp. 96

Author(s):

Damiano Montani ◽

Francesco Perrini ◽

Daniele Gervasio ◽

Andrea Pulcini

Keyword(s):

Business Ethics ◽

Earnings Management ◽

Management Practices ◽

Balance Sheet ◽

Financial Statements ◽

Ethical Behaviour ◽

Business Practices ◽

Research Attention ◽

Social Communications ◽

Corporate Social

In this article, we build a Quantitative Discretion Index (hereafter referred to as QDI) to identify within the financial statements the most vulnerable areas related to possible opportunistic earnings management (hereafter referred to as EM) practices, with the aim of supporting ethical behaviour in corporate social communications. In order to better explain the QDI construction method, a practical example is implemented, starting from an analysis of the consolidated balance sheet of an Italian listed company operating in the media sector (in 2016). The QDI might be added to the contents of voluntary information provided by companies that pay attention to ethical behaviour and corporate social responsibility. Within each corporate balance sheet, the QDI allows stakeholders to identify the evaluation discretion areas, where any possible EM practices may be more likely and on which it may be more useful for stakeholders to focus their research attention. Business ethics aims to mitigate EM practices in social communications, including voluntary communication. Indeed, the discretional nature of the assessment of financial statements items by the administrative body represents one of the main weaknesses in the activity of mitigating earnings management practices. At present, the literature has dealt with the relations between ethical behaviour and EM; however, the research should also provide tools that can identify and neutralise the possibilities that opportunistic EM practices can be implemented, thus resulting in more ethical business practices.

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PENGARUH PERENCANAAN PAJAK TERHADAP MANAJEMEN LABA YANG DIMODERASI OLEH PENURUNAN TARIF PAJAK (DISKON PAJAK)

Jurnal Ilmiah Akuntansi dan Manajemen ◽

10.31599/jiam.v16i1.116 ◽

2020 ◽

Vol 16 (1) ◽

pp. 85-95

Author(s):

Oma Romantis ◽

Kurnia Heriansyah ◽

Soemarsono D.W ◽

Widyaningsih Azizah

Keyword(s):

Earnings Management ◽

Secondary Data ◽

Sampling Technique ◽

Financial Statements ◽

Total Sample ◽

Tax Planning ◽

Tax Rates ◽

Panel Data Regression ◽

Analysis Technique ◽

Data Regression

The aims of this study to examine the effect of tax planning on earnings management which is moderated by reducing tax rates (tax discounts). The population in this study are companies listed in the 2017-2018 LQ45 index. The sampling technique in this study used a purposive sampling method with predetermined criteria, in order to obtain a total sample of 23 companies with final data totaling 46 financial statements. The type of data is secondary data obtained from www.idx.co.id. The analysis technique used in this study is panel data regression analysis and is processed using the Eviews 9.0 program. The results of this study indicate that tax planning has a significant effect on earnings management with a negative coefficient direction. A reduction in tax rates (tax discounts) weakens the effect of tax planning on earnings management.

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Motive behind Earnings Management Practices: Case in Public Property and Real Estate Companies in Indonesia

AKRUAL Jurnal Akuntansi ◽

10.26740/jaj.v12n1.p49-64 ◽

2020 ◽

Vol 12 (1) ◽

pp. 49

Author(s):

Alwan Sri Kustono

Keyword(s):

Real Estate ◽

Earnings Management ◽

Hypothesis Testing ◽

Management Practices ◽

Financial Statements ◽

Public Companies ◽

Public Property ◽

Real Estate Sector ◽

Testing Data ◽

Stage Analysis

This study examines the antecedents and consequence variables of earnings management. This study is expected to explain the motive of earnings management practices by public property and real estate companies in Indonesia: opportunistic or efficient. The theory which is the basis for developing the hypotheses ise agency, positive accounting, and signaling theories simultaneously. This study is explanatory research which aims to explain the causal relationship between variables through hypothesis testing. Data of this research are financial statements of public companies in the property and real estate sector in Indonesia (2014-2018) with some criteria. There are 60 firm-years data used in the analysis. Hypothesis testing uses multiple linear regression two-stage. The first stage analysis is used to examine the effect of the antecedent earnings management variable. Regression second stage test the consequences of earnings management practices. The results show debt and independent commissioners affect earnings management. Management performs more dominant earnings management because of opportunistic interests than to maintain market value and the interests of its shareholders. The implication of this research is to provide a comprehensive discourse on the motives for earnings management behavior in Indonesia.

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The Impact of Earnings Management on Stock Returns for Listed Industrial Firms on the Amman Stock Exchange

Business and Economic Research ◽

10.5296/ber.v9i3.15011 ◽

2019 ◽

Vol 9 (3) ◽

pp. 1

Author(s):

Ahmed M. Al Omush ◽

Walid M Masadeh ◽

Rasha M. Zahran

Keyword(s):

Earnings Management ◽

Stock Returns ◽

Management Practices ◽

Stock Exchange ◽

Financial Statements ◽

Industrial Firms ◽

Significance Level ◽

Amman Stock Exchange ◽

Study Population ◽

Operating Cash Flow

This study aims to investigate the impacts of earning management on the stock returns of listed industrial firms on the Amman Stock Exchange, with the observance of (firm size and operating cash flow) as control variables for the study. In order to fulfill the purposes of this study, the researcher utilized (Jones model) and (Modified Jones model) to measure earning management through reliance on discretionary accruals as evidence of earnings management practices, and utilize (Market Return On the Stock model) to measure stock returns, and the study population was Mining and Extraction Industries firms also Food and Beverages firms listed in Amman Stock Exchange, the study was conducted on a sample of 18 firms which represents 75% of the study population for the period from 2014 to 2018, In addition to using descriptive and analytical approach to data collection, analysis, and testing hypotheses through financial statements of the firms in the study, the researcher has used the Statistical Package for Social Sciences (SPSS) program to test the hypotheses. This study creates many results some of which are: there is an insignificant relationship between earnings management practices and stock returns for listed industrial firms in Amman Stock Exchange during the study period at the significance level of 5%, Which reflects the poor efficiency in Amman Stock Exchange and not the information contained in the financial statements issued and therefore not impact stock prices, which in turn affects the stock returns, and there is an insignificant relationship between stock returns and operating cash flow at the level of significance of 5%, In addition found significant correlation between firm size and stock returns at the significance level of 1%. The researcher presented a set of recommendations; the following are most valuable: the importance of increasing the awareness of the relevant parties about the unreliability of financial statements issued by industrial companies listed on the Amman Stock Exchange in existence of the earnings management practice and not reflecting the information contained in the financial statements on prices and stock returns by holding seminars, conferences and meetings also Activating the role of audit committees further to be able to detect the practice of earnings management and decrease it.

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CEO discretion, political connection and real earnings management in Nigeria

Management Research Review ◽

10.1108/mrr-12-2018-0460 ◽

2020 ◽

Vol 43 (8) ◽

pp. 909-929

Author(s):

Armaya'u Alhaji Sani ◽

Rohaida Abdul Latif ◽

Redhwan Ahmed Al-Dhamari

Keyword(s):

Earnings Management ◽

Reporting Quality ◽

Real Earnings Management ◽

Political Connection ◽

Financial Reports ◽

Content Type ◽

Dummy Variable ◽

Panel Data Regression ◽

Data Regression ◽

Financial Scandals

Purpose The purpose of this paper is to examine the influence of CEO discretion on the real earnings management and to explore whether the discretion of the CEO to ensure accurate and reliable financial reports is influenced by the political connection of board members. Design/methodology/approach Using the generalized method of movement to control the potential endogeneity on the sample of listed companies in Nigeria, the study conducted several checks using Driscoll–Kraay panel data regression with standard error to robust the main findings. Findings The paper provides evidence that CEO Discretion reduces the tendency of real earnings management and improve the reporting quality. However, the CEO’s discretion to provide reliable financial reports and to reduce the likely earnings manipulation is overturn by the presence of politically connected directors. Originality/value Existing studies on CEO attributes and earnings management in Nigeria fail to explain why CEOs were involved in corporate financial scandals. This paper suggests that the presence of politically connected directors is what override and upturn the CEO discretion to dwell into real earnings manipulations. Prior studies measured political connection using a dummy variable (Chaney et al., 2011; Osazuwa et al., 2016; Tee, 2018), this paper measured political connection using the proportion of politically connected directors. This is on the idea that the presence of more politically connected directors may give them the power to override the CEOs decision.

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PENGARUH GOOD CORPORATE GOVERNANCE TERHADAP MANAJEMEN LABA

El Muhasaba Jurnal Akuntansi ◽

10.18860/em.v1i2.1873 ◽

2012 ◽

Vol 1 (2) ◽

Author(s):

Yufenti Oktafia

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Business Performance ◽

Conflicts Of Interest ◽

Financial Statements ◽

Financial Statement ◽

Corporate Management ◽

Financial Reports ◽

Discretionary Accrual ◽

Good Corporate Governance

Earning managements is a management action in the process of preparing financial statements to influence the level of earnings that is displayed. Earnings management is one factor that can reduce the credibility of financial statements. Add to bias earnings management in the financial statements and can interfere with the use of a trusted financial reports profit figures as a result of these engineering profit numbers without engineering. Corporate governance is a concept proposed to improve business performance through supervision or monitoring management performance and ensuring accountability of management to the stakeholders with a framework based on rules. The concept of corporate governance as proposed for the achievement of corporate management more transparent to all users of financial statements. If this concept is applied properly it is expected that economic growth will continue to rise in line with the transparency of corporate management a better and will benefit many parties. Detection possibility of earnings management in the financial statements, examined through the use of estimates of total accruals. Total accruals consist of nondiscretionary accrual and discretionary accruals. Earnings management occurs because of opposition from various interested parties on the financial statement information, which interested parties on financial statements information that is internal and external parties. Conflicts of interest that occurs is minimized by a mechanism that is capable of aligning the interests of external and internal parties. Agency theory suggests that earnings management issues can be eliminated with the supervision of their own through good corporate governance. Keywords: corporate governance, discretionary accrual

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PRAKTIK EARNING MANAGEMENT DAN PENGARUHNYA TERHADAP KOMPENSASI BONUS

Jurnal Akademi Akuntansi ◽

10.22219/jaa.v3i1.11915 ◽

2020 ◽

Vol 3 (1) ◽

pp. 100

Author(s):

Siti Zubaidah

Keyword(s):

Panel Data ◽

Earnings Management ◽

Management Practices ◽

Hypothesis Test ◽

Financial Statements ◽

Test Method ◽

Earning Management ◽

Business Unit ◽

Business Units ◽

Business Entities

The purpose of this study is to identify earning management practices and analyze the effect of earnings management on bonus compensation. The object of research uses the Business Entity and Sharia Business Unit. The selected sample is 34 companies. Variables used are earnings management and bonus compensation. Data is collected through documentation in the form of financial statements of Business Entities and Sharia Business Units in 2017 and 2018. This study uses a hypothesis test. The test method used is panel data test using EViews 10 software. The results showed that the practice of earning management in Sharia Business Entities and Business Units is mostly done by income maximalization or increasing profit (50%) and income minimizasion or decreasing profit (50%), and there is a significant influence between earning management practices and bonus compensation.

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Public Accountants’ Perceptions Of The Acceptability Of Earnings Management Practices Through The Employment Of GAAP In The Post-Sox Period

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v26i1.277 ◽

2010 ◽

Vol 26 (1) ◽

Cited By ~ 1

Author(s):

John E. McEnroe

Keyword(s):

Earnings Management ◽

Management Practices ◽

Financial Statements ◽

Securities And Exchange Commission ◽

Font Size ◽

Generally Accepted Accounting Principles ◽

Sarbanes Oxley ◽

Accounting Scandals ◽

Audit Opinions ◽

Certification Requirements

Over fifteen years ago, Martens and McEnroe (1992) conducted a behavioral study involving earnings management through the use of Generally Accepted Accounting Principles (GAAP). Their findings indicated that auditors issued unqualified audit opinions on those financial statements and perceived little risk to litigation as a result. A decade later they conducted a similar study (Martens and McEnroe 2002) with the expectation that increased attention to earnings management by then chairman of the Securities and Exchange Commission (SEC), Arthur Levitt, would reduce auditors’ perceptions that the letter of GAAP is in itself an aegis or “safe harbor” against litigation. Although the authors found that auditors had become more conservative, they still issued unqualified opinions on financial statements in which transactions were reported in their form rather than their substance. Given the accounting scandals of Enron and WorldCom, among others, and the enactment of the Sarbanes-Oxley Act (SOX) in 2002, especially with its officers’ certification requirements, it was posited that auditors would exhibit a much more conservative approach than in either of the two previous studies. The results indicate that although auditors are more conservative than in the 1992 study, they still allow clients to engage in earnings management practices through the use of GAAP by issuing unqualified audit opinions on their financial statements.

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Pengaruh Ukuran KAP, Ukuran Perusahaan dan Manajemen Laba terhadap Integritas Laporan Keuangan

Jurnal ULTIMA Accounting ◽

10.31937/akuntansi.v10i2.993 ◽

2019 ◽

Vol 10 (2) ◽

pp. 138-149

Author(s):

Intan Paulina Lubis ◽

Lailah Fujianti ◽

Rafrini Amyulianthy

Keyword(s):

Regression Analysis ◽

Earnings Management ◽

Firm Size ◽

Stock Exchange ◽

Secondary Data ◽

Financial Statements ◽

Company Size ◽

Panel Data Regression ◽

Data Regression ◽

Size Firm

This study aims to analyze the effect of KAP size, firm size and earnings management on the integrity of financial statements. The integrity of financial statements is the extent to which the financial statements presented indicate true and honest information. This study was taken because there are still contradictions from previous studies. This study uses secondary data. The population in this study is the consumer goods industry companies listed on the Indonesia Stock Exchange in 2012-2016. Determination of the sample by purposive sampling method, there are 13 samples from the total population of 40. The method used to analyze the data is panel data regression analysis, Eviews 9. Regression analysis results show that firm size negatively significant to the integrity of financial statements. While the size of KAP and earnings management have no significant effect on the integrity of financial statements.Keywords: Financial Statement Integrity, Company Size, Company Size and Earnings Management

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Pengaruh Kualitas Audit, Ukuran Perusahaan Dan Leverage Terhadap Manajemen Laba Pada Perusahaan Perbankan Yang Tercatat Di Bursa Efek Indonesia Tahun 2016-2018

Jurnal Mahasiswa Manajemen ◽

10.30587/mahasiswamanajemen.v1i01.1237 ◽

2020 ◽

Vol 1 (01) ◽

pp. 56

Author(s):

Rodhiya Maulidah ◽

Rahmat Agus Santoso

Keyword(s):

Linear Regression ◽

Earnings Management ◽

Multiple Linear Regression ◽

Firm Size ◽

Management Practices ◽

Audit Quality ◽

Stock Exchange ◽

Financial Statements ◽

Company Size ◽

Earnings Information

The existence of earnings information that is needed in the financial statements can be targeted by parties who are not responsible for carrying out earnings management practices. There are several factors that can present earnings management practices, namely audit quality, company size and leverage. This study discusses the evaluation of quality, company size and leverage on earnings management in banking companies listed on the Indonesia Stock Exchange in 2016-2018. By using 117 samples of annual financial statements or financial statements of companies listed on the Indonesia Stock Exchange. Tests carried out using multiple linear regression. Regression results indicate the results of quality audits and firm size significantly influence earnings management. Meanwhile, leverage is not significant to earnings management. It is expected that the results of this study can add insight for users of financial statements to pay attention to audit quality and company size to avoid earnings management practices.

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