scholarly journals The role of intellectual capital as a mediation of relationship between audit committee and real earnings management

Accounting ◽  
2021 ◽  
Vol 7 (7) ◽  
pp. 1799-1804 ◽  
Author(s):  
Sri Layla Wahyu Istanti ◽  
Anis Chariri ◽  
Agung Juliarto
Keyword(s):  
Human Capital ◽  
Earnings Management ◽  
Intellectual Capital ◽  
Audit Committee ◽  
Mediating Effect ◽  
Real Earnings Management ◽  
Manufacturing Companies ◽  
Management Actions ◽  
The Relationship

This study aims to examine the role of human capital, which is part of intellectual capital, as a mediator in the relationship between audit committee expertise and the number of audit committee meetings with real earnings management. This research is a quantitative study. The data source used is data from manufacturing companies in Indonesia. The sample selection technique used purposive sampling. The analysis technique uses path analysis. The results showed that the expertise of the audit committee had a significant effect on human capital, while the number of audit meetings had no effect on human capital. The results of this study also state that audit committee expertise, number of audit committee meetings and human capital performance have no effect on real earnings management actions. Furthermore, there is empirical evidence that shows that human capital has a mediating effect on the relationship between audit committee expertise and the number of audit committee meetings with real earnings management. The role of human capital in the relationship between the expertise of the audit committee and the number of audit committee meetings becomes originality, so it is the main contribution of research. The limitation of this research is that it only uses human capital as a mediating variable.

scholarly journals PENGARUH REAL EARNING MANAGEMENT TERHADAP ARUS KAS OPERASI PERUSAHAAN DENGAN KUALITAS AUDIT SEBAGAI VARIABEL MODERASI (Studi pada Perusahaan Manufaktur yang Terdaftar di BEI)

MODUS ◽  
2016 ◽  
Vol 27 (1) ◽  
pp. 65 ◽  
Author(s):  
Felicianus Adi Nugroho ◽  
Dewi Ratnaningsih
Keyword(s):  
Earnings Management ◽  
Audit Quality ◽  
Stock Exchange ◽  
Predictive Ability ◽  
Real Earnings Management ◽  
Earning Management ◽  
Manufacturing Companies ◽  
Management Actions ◽  
The Relationship

This study aims to determine the efect of real earnings management which is a proxy of earnings management to the predictive ability of fnancial reports through the company’s operating cash fow. Researchers also consider the infuence exerted by the quality of audits of the relationship between real earnings management with the company’s operating cash fow. Samples are manufacturing companies listed in Indonesia Stock Exchange during the period of observation 2010-2012.Berdasarkan criteria previously set contained 249 corporate data used in this study. The results of this study revealed that real earnings management has an infuence on the predictive ability of fnancial statements through operating cash fow. Quality audits can also afect earnings management actions undertaken by the company and consequently also of the operating cash fow of the company. Overall audit quality may afect the actions of earnings management and certainly also the predictive ability of corporate fnancial statements.Keywords: real earnings management, operating cash fow, and audit quality.

scholarly journals Does Transfer Pricing Moderate the Effect of Deferred Tax Assets and Deferred Tax Expenses on Accrual Earnings Management of Firms in Indonesia?

2021 ◽  
Vol 6 (3) ◽  
pp. 97-103
Author(s):  
Nera Marinda Machdar ◽  
Dade Nurdiniah
Keyword(s):  
Earnings Management ◽  
Transfer Pricing ◽  
Manufacturing Companies ◽  
Moderator Variable ◽  
Policy Makers ◽  
Deferred Tax Assets ◽  
Management Actions ◽  
Deferred Tax ◽  
Accounting Policy

The purpose of this study is to analyze (a) the effect of deferred tax assets on accrual earnings management; (b) the effect of deferred tax expenses on accrual earnings management; (c) the role of transfer pricing as a moderator variable to strengthen the effect of deferred tax assets on accrual earnings management; and (d) the role of transfer pricing as a moderator variable to strengthen the effect of deferred tax expenses on accrual earnings management. The samples consist of 160 manufacturing companies listed in Indonesia Stock Exchange (IDX). The study utilizes the financial statements from 2012 to 2018. This study presents that (a) deferred tax assets influence accrual earnings management; b) deferred tax expenses affect accrual earnings management; c) transfer pricing does not strengthen the effect of deferred tax assets on accrual earnings management; and d) transfer pricing does not strengthen the effect of deferred tax expenses on accrual earnings management. This study contributes to accounting studies, tax authorities and regulators, and accounting policy makers. Firstly, this research contributes to the development of accounting studies on the role of transfer pricing as a moderator of the effect of deferred tax assets and deferred tax liabilities on earnings management. Secondly, the results of this study can make a consideration for tax authorities and regulators in addressing company management actions to minimize the amount of tax paid by utilizing policies according to PSAK. It is worth considering how to sanction companies that deliberately reduce the amount of tax that should be paid. It is necessary to conduct tax investigation by the Directorate General of taxes on companies that are indicated to have practiced accrual earnings management with the aim of reducing the tax burden. Thirdly, accounting policy makers need to consider how management reduces the tax that should be paid through accounting policies that are allowed under PSAK and transfer pricing mechanism.

The mediating role of financial performance in the relationship between green innovation and firm value: evidence from ASEAN countries

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nur Asni ◽  
Dian Agustia
Keyword(s):  
Financial Performance ◽  
Firm Value ◽  
Mediating Effect ◽  
Manufacturing Companies ◽  
Green Innovation ◽  
Content Type ◽  
Mediating Role ◽  
Asean Countries ◽  
The Relationship

PurposeThe purpose of this paper is to investigate the mediating role of financial performance (FP) in modelling the relationship between green innovation (GI) and firm value (FV), using ASEAN countries as sample with panel analysis.Design/methodology/approachA panel data was collected from 374 publicly traded companies in six ASEAN countries, and was analysed using feasible general least squares (FGLS) to control heteroscedasticity and serial correlation.FindingsThe findings suggest that financial performance, namely return on assets (ROA) and return on equity (ROE), has a significant value in mediating the relationship between GI and FV. This illustrates that investors in the ASEAN region's capital market are more interested in the economic motivation for companies implementing GI. Other findings also provide evidence that ROA and ROE have positive and significant effects on FV. This indicates that the profitability resulting from a firm's ability to continuously innovate has a positive impact on the creation of value by manufacturing companies in the ASEAN region.Research limitations/implicationsThe number of observations is still relatively limited, from manufacturing companies listed on stock exchanges in the ASEAN countries. The total number of samples used in this study was 374 companies with 22.30% of the total population.Originality/valueThis study combines the different types of secondary data to provide panel evidence on the mediating effect of financial performance using ROA and ROE in the relationship between green innovation and firm value, using ASEAN countries as the sample.

scholarly journals Employees’ Weekend Activities and Psychological Well-Being via Job Stress: A Moderated Mediation Role of Recovery Experience

2020 ◽  
Vol 17 (5) ◽  
pp. 1642 ◽  
Author(s):  
Jae-Geum Jeong ◽  
Seung-Wan Kang ◽  
Suk Bong Choi
Keyword(s):  
Job Stress ◽  
Well Being ◽  
Mediating Effect ◽  
University Graduates ◽  
Manufacturing Companies ◽  
Psychological Well Being ◽  
Daily Work ◽  
Recovery Experiences ◽  
The Relationship

An employee’s off-work activities are known to contribute positively to recovering their energy levels depleted by daily work. Despite this view and understanding, the effect of employees’ weekend activities on their psychological well-being has not attracted sufficient research interest. Therefore, the purpose of this paper is to analyze the relationship between employees’ weekend activities and their psychological well-being, and the mediating role of job stress in the above relationship. We also investigated the moderating role of the recovery experiences in the relationship between employees’ weekend activities and job stress. Furthermore, we examined the moderated mediating effect of recovery experiences on the relationship among employees’ weekend activity, job stress, and psychological well-being. The survey data was obtained from 294 employees working in 15 manufacturing companies in South Korea. The participants were 71.1% men and 28.9% women, 49.7% were university graduates, followed by 26.2% college graduates, 12.6% high school graduates, 10.2% post-graduates, and 1.4% Ph.D. holders. In terms of age composition, 50% participants were in their thirties, followed by 19.7% in their forties. The empirical analysis revealed that weekend activities are positively associated with employees’ psychological well-being. Moreover, job stress was found to mediate the relationship between weekend activities and psychological well-being. We also found that the recovery experiences positively moderated the relationship between weekend activities and job stress. Further, the study revealed that the higher the level of recovery experience, the greater the effect of weekend activities on psychological well-being affected by job stress. The paper also discusses the theoretical and practical implications of the study.

scholarly journals CAN AUDIT COMMITTEE REDUCE REAL EARNINGS MANAGEMENT?

2020 ◽  
Vol 22 (1) ◽  
pp. 139-146
Author(s):  
YULIUS KURNIA SUSANTO ◽  
ARYA PRADIPTA
Keyword(s):  
Earnings Management ◽  
Board Of Directors ◽  
Audit Committee ◽  
Sampling Method ◽  
Negative Influence ◽  
Real Earnings Management ◽  
Manufacturing Companies ◽  
Purposive Sampling ◽  
The Board Of Directors

The objective of research was to give empirial evidence the influence of audit committee and directors on real earnings management (REM). The samples of this research consist of 336 data from 84 public manufacturing companies from 2013 until 2016 and selected by purposive sampling method. The result showed that the audit committee expertise and independence directors have significantly and postive influence on REM. The board of directors have significantly and negative influence on REM. The influence of audit committee tenure, size, meeting on REM is not significantly. The results of this reasearch shows that outsider of the firm like audit committee and independence directors can’t detect REM. The chance for management doing REM. While, board of directors as insider of the firm can detect and reduce REM.

scholarly journals Auditor report and earnings management: Evidence from FTSE 350 companies in the UK

2016 ◽  
Vol 6 (4) ◽  
pp. 334-344 ◽  
Author(s):  
Mohammad Alhadab
Keyword(s):  
Earnings Management ◽  
Discretionary Accruals ◽  
Real Earnings Management ◽  
Audit Report ◽  
Audit Firms ◽  
The Uk ◽  
Different Characteristics ◽  
The Relationship

This paper examines the relationship between audit report and real-based and accrual-based earnings management based on a UK sample. Prior research has mostly focused on US data and examined the relationship between auditor report (qualified vs. non-qualified) and earnings management (proxied by discretionary accruals), and found evidence that qualified audit report is positively associated with the level of discretionary accruals. Despite the importance of the role of audit firms to constrain the use of earnings management, there is no research to date has examined the relationship between auditor reports and real earnings management activities based on UK sample. This paper therefore fills this gap in the literature by providing the first evidence for UK FTSE 350 companies that auditor report is positively associated with real and accrual earnings management. The paper also provide evidence that firms received qualified audit report share different characteristics as compared to firms received un-qualified audit report.

Does green intellectual capital spur corporate environmental performance through green workforce?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Adil Mansoor ◽  
Sarwat Jahan ◽  
Madiha Riaz
Keyword(s):  
Human Capital ◽  
Human Resource ◽  
Intellectual Capital ◽  
Environmental Sustainability ◽  
Environmental Performance ◽  
Two Dimensions ◽  
Mediating Effect ◽  
Intangible Asset ◽  
Content Type ◽  
The Relationship

PurposeDrawing upon the intellectual capital-based view theory, this study explored the relationship between green intellectual capital (IC) and environmental performance (EP) with the intervening effect of green human resource management (GHRM).Design/methodology/approachCross-sectional data were collected from 187 human resource directors/managers working in manufacturing firms of Pakistan. A partial least squares approach was applied to test the hypothesized relationships.FindingsThe results showed a mediating effect of GHRM on the relationship between green human capital and the organizational EP. Also two dimensions of green IC (green human capital, green relational capital) were also found positively related to the EP of the firm.Practical implicationsPolicymakers should devote their attention to the preservation and enhancement of their employees' knowledge as green human capital is possessed by the employees. Furthermore, managers must exchange information with key stakeholders to better understand and resolve their environmental concerns. Organizational leaders must also ensure the implementation of GHRM policies that, in turn, improve the EP with the aid of green IC.Originality/valueThe current research contributes to the literature by defining green IC as an antecedent and GHRM as an intervening variable for EP. In addition, this study underlines the significance of GHC as a valuable intangible asset for the achievement of environmental sustainability. It also illustrates the importance of GRC, which creates an exchange partnership with the stakeholders to promote corporate environmentalism.

Audit committee and financial reporting quality: the moderating effect of audit quality

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sana Mardessi
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Audit Committee ◽  
Audit Quality ◽  
Reporting Quality ◽  
Moderating Effect ◽  
Real Earnings Management ◽  
Financial Reporting Quality ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this study is to address the impact of audit quality on financial reporting quality proxied by real earnings management. To further clarify the mentioned links, this study empirically assesses the moderating effect of audit quality. Design/methodology/approach The study is based on a sample consisting of 90 non-financial companies that are listed in the Amsterdam stock exchange in AEX all share index over the 2010–2017 period. This study applies a quantitative approach and secondary data as the main source of information for analysis. This paper performs an ordinary least squares regression to examine the moderating effect of audit quality on the relationship between financial reporting quality. Findings Empirical findings demonstrate that corporate governance mechanism, mainly independence members, financial expert and audit committee size has a statistically significant relationship with real earnings management. However, the effect of audit committee meetings on real earnings management is not significant. There is also evidence that audit quality moderates the audit committee – real earnings management links. Originality/value This study extends the existing literature by examining the moderating effect of audit quality on the relationship between financial reporting quality proxied by real earnings management in the Dutch context.

EFEKTIVITAS KOMITE AUDIT DAN MANAJEMEN LABA RIIL

2015 ◽  
Vol 11 (2) ◽  
pp. 157
Author(s):  
Yuliani Yuliani ◽  
Christine Novita Dewi
Keyword(s):  
Empirical Study ◽  
Earnings Management ◽  
Audit Committee ◽  
Sampling Method ◽  
Stock Exchange ◽  
Educational Background ◽  
Real Earnings Management ◽  
Manufacturing Companies ◽  
External Audit ◽  
Independent Variable

h: 0px; "> This research is an empirical study of the audit committee effectiveness towards the company’stendency in conducting real earnings management. The purpose of this research is to obtain empiricalevidence the influence of educational background of the audit committee’s composition, diligence ofthe audit committee, audit committee’s relationship with related parties towards company’s tendencyin conducting real earnings management through sales manipulation, excessive production andreduction in discretionary cost. Sampling was done using purposive sampling method, which uses 117data of manufacturing companies that are listed in BEI (Indonesia Stock Exchange) in the period of2009 to 2012 that tend to conduct real earnings management. The independent variable used are theeducational background composition of the audit committee members, audit committee diligence isproxied by the frequency of the audit committee internal meetings, and the audit committeerelationships with related parties are proxied by the frequency of the external audit committeemeeting, the results showed that the more fulfilled the composition of the audit committee competence,the more numbers of internal and external meetings conducted by audit committee, the lower ofcompany tends to manage their earnings though real activities.Keywords: real earnings management, internal meetings, audit committee’s compositions, externalmeetings

Sign in / Sign up

Export Citation Format

Share Document