A study on relationship between earnings management and operating cash flows management: Evidence from Tehran Stock Exchange

Objective - The purpose of this research is to examine the consequences of accrual based earnings management and real earnings management on future operating performance.The firms studied engage in accrual-based earnings management with discretionary accrual measures using the modified Jones model and some of the following real earnings management activities: (1) Sales manipulation that accelerates the timing of sales through increased price discounts or cutting prices to boost sales in the current period; and/or (2) cutting of discretionary expenditures to increase income in the current period. Furthermore, the study examines the extent to which discretionary accrual and real earnings management affects subsequent operating performance (as measured by both return on assets and operating cash flows). Methodology/Technique - The sample manufacturing firms that engage in financial statement were listed on the Indonesian Stock Exchange between 2012 and 2014. The hypothesis testing method used in this research is multiple regression linear. Findings - The results suggest that accrual-based earnings management, with discretionary accrual measures, and real earnings management through sales manipulation and discretionary expenditures are positively associated with return on assets after one and two years. Meanwhile, accrual-based earnings management and real earnings management through sales manipulation enhances subsequent operating cash flows. However, real earnings management through discretionary expenditures does not influence operating cash flows. Novelty - This research contributes to the existing literature on the subsequent impact of accrual-based earnings management and real earnings management Type of Paper: Empirical Keywords: Discretionary Accrual; Sales Manipulation; Discretionary Expenditure; Return on Assets; Operating Cash Flows JEL Classification: M21, M41.

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PENGARUH OPERATING CAPACITY, SALES GROWTH DAN ARUS KAS OPERASI TERHADAP FINANCIAL DISTRESS

Jurnal Riset Keuangan Dan Akuntansi ◽

10.25134/jrka.v5i1.1883 ◽

2019 ◽

Vol 5 (1) ◽

Author(s):

Annisa Livia Ramadhani ◽

Khairun Nisa

Keyword(s):

Logistic Regression ◽

Regression Analysis ◽

Financial Distress ◽

Agricultural Sector ◽

Stock Exchange ◽

Sampling Technique ◽

Cash Flows ◽

Sales Growth ◽

Operating Capacity ◽

Operating Cash Flows

This study aims to determine how the influence of operating capacity, sales growth and operating cash flows on financial distress. The population in this study israll agricultural sector companies listed on the Indonesia Stock Exchange (IDX) in 2013-2017. The sampling technique in this study used purposive sampling which produced 8 samples in a period of 5 years, namely as many as 40 units of data samples. The analytical method used is logistic �regression analysis which is processed. using SPSS Version 25. Based on the results of this study, it was found that simultaneous operating capacity, sales growth and operating cash flows influence the occurrence of financial distress. Then partially, operating capacity and sales growth have no effect on the occurrence of financial distress, while operating cash flows have a positive and significant effect on the occurrence of financial distress.�Keyword : Financial Distress, Operating capacity, Sales growth, Operation cash flow.

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PENGARUH ARUS KAS KEGIATAN OPERASI, SIKLUS OPERASI, UKURAN PERUSAHAAN DAN TINGKAT HUTANG TERHADAP PERSISTENSI LABA (STUDI EMPIRIS PADA PERUSAHAAN JASA SUB SEKTOR KONSTRUKSI DAN BANGUNAN YANG TERDAFTAR DI BURSA EFEK INDONESIA PERIODE 2013-2016)

Jurnal TAMBORA ◽

10.36761/jt.v3i1.184 ◽

2019 ◽

Vol 3 (1) ◽

pp. 45-54

Author(s):

Varadika Sarah ◽

Ahmad Jibrail ◽

Sudrajat Martadinata

Keyword(s):

Panel Data ◽

Firm Size ◽

Stock Exchange ◽

Sampling Technique ◽

Cash Flows ◽

Earnings Persistence ◽

Building Sector ◽

Operating Cycle ◽

Operating Cash Flows ◽

Operating Cash Flow

Earnings Persistence is earning can reflect the earnimg priod next. In fact there are still companies that do not guarantee a persistent of earning. This study wished to examine ehe effect of operating cash flows, operating cycle, firm size, and the lever of debt both individually and simultaneously to earning persistence in service compnies of construction and building sector listed on Indonesia Stock Exchange period 2013-2016. The sampling technique using purposive sampling so than 9 sample companies were obtained. Data were analized using panel data with multiple regression then tested with the help of STATA 11 softwere.The result of this study are: operating cash flow, operating cycle, firm size there is not significant effect on earning persistence. While the level of debt has significant effect on earning persistence in service compnies of construction and building sector listed on Indonesia Stock Exchange period 2013-2016

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CORPORATE GOVERNANCE DAN MANAJEMEN LABA RIIL PERBANKAN ISLAM INDONESIA DAN MALAYSIA

JMM UNRAM - MASTER OF MANAGEMENT JOURNAL ◽

10.29303/jmm.v7i4.344 ◽

2018 ◽

Vol 7 (4) ◽

Author(s):

M. Zubaedy Sy ◽

Nuryati Nuryati ◽

Surifah Surifah

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Audit Committee ◽

Stock Exchange ◽

Cash Flows ◽

Profit Sharing ◽

Least Square ◽

Real Earnings Management ◽

Annual Reports ◽

Islamic Banks

The main objective of this research is to create good corporate governance that is able to restrictopportunistic REM. The specific objectives of this study are 1) to provide evidence of difference inthe practices of CG and REM in Indonesian and Malaysian Islamic banks,and 2) to provide empirical evidence of the influence of CG on the REM of Indonesian and Malaysian Islamic banks. The study was conducted on Indonesian and Malaysian Islamic banks from 2011 to 2016by using purposive samplingmethod. The research data is secondary data in the form of annual reports and financial reports originating from the Indonesian Banking Directory, the Indonesia Stock Exchange and the Malaysia Stock Exchange. The analysis method used to test the differences between CG and real earnings management is the Man Whitney test whilethe method used to test the effect of CG on the REM of Islamic Banks in Indonesia and Malaysia is the multiple regression analysiswithordinary least square. The results show that the practices of corporate governance in Indonesia and Malaysia have their own strengths and weaknesses. CG mechanism of Indonesia and Malaysia shows lower level in some parts and higher level in other parts. Malaysia’s REM islower than Indonesia’sREM through operating cash flow, investment profit sharing, and discretionary costs. The experimental results show that CG generally does not affect real earnings management and only the independent audit committee who is able to restrictreal earnings management through operating cash flows. Riset ini menguji hubungan antara corporate governance (CG) dan manajemen laba berdasar aktivitas riil atau disebut real earnings management (REM) bank-bank Islam di Indonesia dan Malaysia. Tujuan jangka panjang riset ini adalah terciptanya good corporate governace yang mampu membatasi REM oportunistik. Target khusus penelitian ini adalah 1) memberi bukti empiris perbedaan praktik CG dan REM bank Islam Indonesia dan Malaysia. 2) memberi bukti empiris pengaruh CG terhadap REM bank Islam Indonesia dan Malaysia. Metode penelitian menggunakan metode ilmiah - kuantitatif, dengan membangun satu atau lebih hipotesis berdasarkan pada suatu struktur atau kerangka teori dan kemudian menguji hipotesis-hipotesis tersebut secara empiris. Penelitian dilakukan pada bank Islam Indonesia dan Malaysia periode waktu 2011 sampai 2016. Metode pengambilan sampel secara purposive sampling. Data penelitian merupakan data sekunder berupa annual report dan laporan keuangan yang berasal dari Directory Perbankan Indonesia, Bursa Efek Indonesia dan Bursa Efek Malaysia. Teknik analisis untuk menguji perbedaan CG dan manajemen laba riil adalah uji beda Man Whitney, sedangkan untuk menguji pengaruh CG terhadap REM Bank Islam Indonesia dan Malaysia menggunakan analisis regresi berganda ordinary least square. Hasil menunjukkan bahwa praktik corporate governance Negara Indonesia dan Malaysia, masing masing memiliki kelebihan dan kelemahan. Mekanisme CG ada yang lebih rendah, maupun lebih tinggi antara Negara Indonesia dengan Malaysia. REM Malaysia lebih rendah signifikan dari pada Indonesia, baik melalui arus kas operasi, bagi hasil investasi, maupun biaya diskresioner. Hasil uji menunjukkan bahwa pada umumnya mekanisme CG tidak berpengaruh terhadap manajemen laba riil. Hanya Independensi komite audit yang mampu menekan manajemen laba riil melalui arus kas operasi.Keywords:Corporate governance, real earnings management, Islamic banking.

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Earnings smoothing around open-market share repurchases

Review of Accounting and Finance ◽

10.1108/raf-10-2012-0111 ◽

2015 ◽

Vol 14 (1) ◽

pp. 64-80

Author(s):

Hui Di ◽

Dalia Marciukaityte

Keyword(s):

Earnings Management ◽

Market Share ◽

Discretionary Accruals ◽

Cash Flows ◽

Share Repurchases ◽

Open Market ◽

Content Type ◽

Operating Cash Flows ◽

Earnings Smoothing ◽

Open Market Share Repurchases

Purpose – The purpose of this paper is to examine whether firms engage in earnings decreasing management before share repurchases to mislead investors or to smooth earnings and improve earnings informativeness. Design/methodology/approach – The authors examine discretionary accruals and cash flows around open-market share repurchases. The primary discretionary accruals measure is industry- and performance-adjusted discretionary current accruals estimated from cash-flow data. Findings – Results show that, firms experience temporary increases in operating cash flows and use negative discretionary accruals to smooth earnings before share repurchases. Firms with the highest pre-repurchase cash flows use the lowest pre-repurchase discretionary accruals. Moreover, pre-repurchase discretionary accruals reflect expectations about future operating cash flows. Firms with the strongest deterioration in operating cash flows after repurchases use the lowest pre-repurchase discretionary accruals. These findings suggest that repurchasing firms use earnings management to increase smoothness and predictability of reported earnings rather than to mislead investors. Originality/value – This paper provides an alternative explanation to the finding of negative discretionary accruals before share repurchases. It adds to the literature on repurchases and earnings smoothing by showing that firms use earnings management around share repurchases to smooth earnings.

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CORPORATE GOVERNANCE DAN MANAJEMEN LABA RIIL PERBANKAN ISLAM INDONESIA DAN MALAYSIA

JMM UNRAM - MASTER OF MANAGEMENT JOURNAL ◽

10.29303/jmm.v7i4.335 ◽

2018 ◽

Vol 7 (4) ◽

Author(s):

M. Zubaedy Sy ◽

Nuryati Nuryati ◽

Surifah Surifah

Keyword(s):

Corporate Governance ◽

Earnings Management ◽

Audit Committee ◽

Stock Exchange ◽

Cash Flows ◽

Profit Sharing ◽

Least Square ◽

Real Earnings Management ◽

Annual Reports ◽

Islamic Banks

The main objective of this research is to create good corporate governance that is able to restrictopportunistic REM. The specific objectives of this study are 1) to provide evidence of difference inthe practices of CG and REM in Indonesian and Malaysian Islamic banks,and 2) to provide empirical evidence of the influence of CG on the REM of Indonesian and Malaysian Islamic banks. The study was conducted on Indonesian and Malaysian Islamic banks from 2011 to 2016by using purposive samplingmethod. The research data is secondary data in the form of annual reports and financial reports originating from the Indonesian Banking Directory, the Indonesia Stock Exchange and the Malaysia Stock Exchange. The analysis method used to test the differences between CG and real earnings management is the Man Whitney test whilethe method used to test the effect of CG on the REM of Islamic Banks in Indonesia and Malaysia is the multiple regression analysiswithordinary least square. The results show that the practices of corporate governance in Indonesia and Malaysia have their own strengths and weaknesses. CG mechanism of Indonesia and Malaysia shows lower level in some parts and higher level in other parts. Malaysia’s REM islower than Indonesia’sREM through operating cash flow, investment profit sharing, and discretionary costs. The experimental results show that CG generally does not affect real earnings management and only the independent audit committee who is able to restrictreal earnings management through operating cash flows. Riset ini menguji hubungan antara corporate governance (CG) dan manajemen laba berdasar aktivitas riil atau disebut real earnings management (REM) bank-bank Islam di Indonesia dan Malaysia. Tujuan jangka panjang riset ini adalah terciptanya good corporate governace yang mampu membatasi REM oportunistik. Target khusus penelitian ini adalah 1) memberi bukti empiris perbedaan praktik CG dan REM bank Islam Indonesia dan Malaysia. 2) memberi bukti empiris pengaruh CG terhadap REM bank Islam Indonesia dan Malaysia. Metode penelitian menggunakan metode ilmiah - kuantitatif, dengan membangun satu atau lebih hipotesis berdasarkan pada suatu struktur atau kerangka teori dan kemudian menguji hipotesis-hipotesis tersebut secara empiris. Penelitian dilakukan pada bank Islam Indonesia dan Malaysia periode waktu 2011 sampai 2016. Metode pengambilan sampel secara purposive sampling. Data penelitian merupakan data sekunder berupa annual report dan laporan keuangan yang berasal dari Directory Perbankan Indonesia, Bursa Efek Indonesia dan Bursa Efek Malaysia. Teknik analisis untuk menguji perbedaan CG dan manajemen laba riil adalah uji beda Man Whitney, sedangkan untuk menguji pengaruh CG terhadap REM Bank Islam Indonesia dan Malaysia menggunakan analisis regresi berganda ordinary least square. Hasil menunjukkan bahwa praktik corporate governance Negara Indonesia dan Malaysia, masing masing memiliki kelebihan dan kelemahan. Mekanisme CG ada yang lebih rendah, maupun lebih tinggi antara Negara Indonesia dengan Malaysia. REM Malaysia lebih rendah signifikan dari pada Indonesia, baik melalui arus kas operasi, bagi hasil investasi, maupun biaya diskresioner. Hasil uji menunjukkan bahwa pada umumnya mekanisme CG tidak berpengaruh terhadap manajemen laba riil. Hanya Independensi komite audit yang mampu menekan manajemen laba riil melalui arus kas operasi.Keywords:Corporate governance, real earnings management, Islamic banking.

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PENGARUH LABA AKUNTANSI, ARUS KAS OPERASI, ARUS KAS INVESTASI, ARUS KAS PENDANAAN, DAN UKURAN PERUSAHAAN TERHADAP RETURN SAHAM

GOING CONCERN : JURNAL RISET AKUNTANSI ◽

10.32400/gc.16.1.32435.2021 ◽

2021 ◽

Vol 16 (1) ◽

pp. 1

Author(s):

Meta Nursita

Keyword(s):

Stock Returns ◽

Stock Return ◽

Stock Exchange ◽

Hypothesis Test ◽

Cash Flows ◽

Study Data ◽

Company Size ◽

Test Model ◽

Operating Cash Flows ◽

The Impact

This study aimed to examine the impact of accounting profit, operating cash flows, investment cash flows, financing cash flows and company size to stock returns on manufacturing firms sector for consumption by the corporate listed and registered under the Indonesia Stock Exchange within 2014 - 2016. This study employed Purposive Sampling method with a total of 39 companies taken as the sample in the present study. Data analysis process followed the following steps; descriptive statistical test, multicollinearity test, model fit test, regression model feasibility test, and hypothesis test. Statistical method used is panel data regression analysis. The result showed that accounting profit had partially significant impact on stock return; operating cash flows no had significant impact on stocks return; investment cash flows, and financing cash flows had no significant impact on stock return and company size had significant impact on stocks return. in addition, simultaneously, the results showed that the four aspects examined had statistically significant impact on stock return.

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Do Investors Perceive Low Risk When Earnings are Smooth Relative to the Volatility of Operating Cash Flows? Discerning Opportunity and Incentive to Report Smooth Earnings

The Accounting Review ◽

10.2308/accr-51568 ◽

2016 ◽

Vol 92 (3) ◽

pp. 137-154 ◽

Cited By ~ 5

Author(s):

Devon Erickson ◽

Max Hewitt ◽

Laureen A. Maines

Keyword(s):

Earnings Management ◽

Cash Flows ◽

Low Risk ◽

Data Availability ◽

Additional Information ◽

Operating Cash Flows ◽

Risk Judgments

ABSTRACT A fundamental accounting question is whether investors perceive low risk when earnings are smooth relative to the volatility of operating cash flows. We conduct two experiments to examine this question. Absent additional information concerning the likelihood of earnings management, our first experiment finds that investors give managers the benefit of the doubt and perceive low risk when earnings are relatively smooth. Given this finding, our second experiment examines whether additional information that supports investors' suspicions of earnings management affects investors' risk judgments when earnings are relatively smooth. We find that investors no longer give managers the benefit of the doubt when additional information suggests that managers have either the opportunity or the incentive to report smooth earnings. Our study provides important insights to the literature concerning both “whether” and “when” relatively smooth earnings affect investors' risk judgments. Data Availability: Contact the authors.

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Comparative Prediction Relative to Reporting of Operating Cash Flows for Tehran Stock Exchange- Listed Companies

SSRN Electronic Journal ◽

10.2139/ssrn.1972878 ◽

2011 ◽

Author(s):

Daruosh Foroghi ◽

Alireza Vafaei ◽

Afshar Afshe Darvishi

Keyword(s):

Stock Exchange ◽

Listed Companies ◽

Cash Flows ◽

Operating Cash Flows

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EFFECTS OF ASSET STRUCTURE, OPERATING CASH FLOW, AND PROFITABILITY ON DEBT POLICY IN PROPERTY AND REAL ESTATE COMPANIES ON THE INDONESIA STOCK EXCHANGE PERIOD 2013-2017

ACCOUNTABILITY ◽

10.32400/ja.24805.7.01.2018.33-41 ◽

2018 ◽

Vol 7 (01) ◽

pp. 33

Author(s):

Meilianta Br Peranginangin ◽

Cathrin Mutiara Saragih ◽

Hantono Hantono ◽

Namira Ufrida Rahmi ◽

Siti Tiffany Guci

Keyword(s):

Linear Regression ◽

Real Estate ◽

Multiple Linear Regression ◽

Cash Flow ◽

Analytical Method ◽

Stock Exchange ◽

Cash Flows ◽

Operating Cash Flows ◽

Operating Cash Flow ◽

Debt Policy

This study aims to determine the effect of asset structure, operating cash flow, and profitability on debt policy in property and real estate companies in the Indonesia Stock Exchange in 2013-2017. The analytical method used is multiple linear regression, F test and t test. The results of the analysis of this study indicate that the structure of assets, operating cash flows, and profitability have a simultaneous effect on debt policy. Meanwhile the analysis partially shows that the asset structure, operating cash flows, and profitability do not partially affect debt policy.

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