The Impact of Cgpi, Company Size, and Leverage on Earnings Management and Their Implications to the Integrity of Financial Statementstle (original) (raw)
Related papers
Corporate Governance, Audit Quality, Firm Size and Leverage: Their Effect on Earnings Management
Technium Social Sciences Journal
The objectives of this research are to estimate and analyze the effect of corporate governance, audit quality, firm size, and leverage on earnings management, either partially or simultaneously. The research method used is panel data regression analysis. Purposive sampling approach was used, choosing six companies that consistently participated in the Corporate Governance Perception Index (CGPI) program from 2014 to 2019 and are listed on the Indonesia Stock Exchange. The results show that CGPI has a significant negative effect, audit quality has no significant effect, firm size has a significant negative effect, leverage has a significant positive effect on earnings management. CGPI, audit quality, firm size, and leverage simultaneously have a significant effect on earnings management with a coefficient of determination (R2) of 0.7936, indicating that all independent variables can explain variations in earnings management by 79.36%, while the remaining 20. 64% is explained by othe...
2018
Earnings management (EM) is manipulation done by management in preparing financialstatement in order to gain management advantages or to increase the firm value.EM can reduce the quality of financial statements because it does not show the realearning periodical. This research aims to identify the effect of good corporate governance(GCG) (institutional ownership, managerial ownership, frequency of boardmeetings, frequency of audit committee (AC) meetings), firm size, and leverage on theEM. Population comprises the companies in LQ 45 index of Iindonesia Stock Exchange(IDX) for the period 2010–2014. Samples of the research were taken using purposivesampling method, and the variables are tested using multiple linear regression analysis.The results of the research show that partially, only leverage has significant effect onEM, while institutional ownership, managerial ownership, frequency of board meeting,frequency of AC meetings, and firm size have no significant effect on EM, but all ...
International Conference on Multidisciplinary Research, 2020
This study aimed to find out and analyze the variables that affect earnings quality by including book-tax differences as a moderating variable to see the relationships between variables. The model testing in this study was carried out on 91 listed companies on the Indonesia Stock Exchange within the period of 2007-2016. The data obtained were analyzed using e-views 10 and a random effect model was obtained where the random effect estimation model was used to examine the effect of Good Corporate Governance (GCG) and Financial Leverage with Book Tax Differences as moderating variables. The results showed that there was a positive and significant effect among good corporate governance variables on earnings quality, and there was a positive and significant effect between financial leverage variables on earnings quality. To see the effect of the book-tax differences in variable as a moderating variable, MRA was used.The results obtained to state that the book-tax differences variable strengthens the relationship between good corporate governance and earnings quality. The variables of book-tax differences do not strengthen or weaken the relationship between financial leverage and earnings quality,
Implication of good corporate governance and leverage on earnings management
International Journal of Social Science and Business
Company management (agent) is the party most concerned to practice earnings management to deceive the users of financial statements so that management gain private gain (obtaining privat gains). In addition, firms with high leverage ratios are influential in performing earnings management practices because the company is in default. The existence of the principle of good corporate governance is expected to minimize earnings management resulting in financial statements do not describe the fundamental value of the company actually.The study aims at stating wheader is proves significant influence between the institutional ownership, the composition of independent commissioners, the size of the board of directors, the size of the company and the leverage on earnings management.The results of research on non-bank companies listed in LQ 45 in Indonesia Stock Exchange year 2013-2016 show that partially the composition of independent commissioners, firm size and leverage have a positive eff...
Effects of Corporate Governance Variables on Earnings Management in Indonesia
2012
To determine the effects of corporate governance on earnings management, this paper analyzed 171 annualreports from issued 2006 to 2009 by 57 non-financial, joint stock companies implementing GCG (GoodCorporate Governance) practices, which were listed on the Indonesia Stock Exchange (IDX). Six corporategovernance variables (board composition, independent commissioners, separate chairman/CEO roles, auditcommittee, managerial share ownership, and audit quality) as well as three control variables (leverage, size,and ROA) were used. The results showed that two corporate governance variables significantly influencedearnings management practices (separate chairman/CEO roles and managerial share ownership); the othervariables had no effect because these companies used GCG practices only to follow regulations rather than tomonitor and control.
2020
The objective of the research was to know the effect of Good Corporate Governance, leverage, profitability on earnings management with firm size as a moderating variable. The research used associative causal method. The population was 30 banking companies listed in BEI (the Indonesia Stock Exchange) in the period of 2012-2016. The samples were 30 observational data, taken by using census sampling technique. The hypothesis was tested by using semPLS analysis. The result of the research showed that, institutional ownership and managerial ownership had negative and significant influence on earnings management, while independent board of commissioners and audit committee had positive but insignificant influence on earnings management. Leverage had negative and insignificant influence on earnings management. Profitability positive and significant influence on earnings management. Firm size as moderating variable could not moderate the correlation of Good Corporate Governance, leverage, p...
Corporate Governance: Actors & Players eJournal, 2017
In the preparation of accrual basis accounting financial statements are selected because it can reflect the company's financial condition directly. Policymakers provide flexibility for management to be able to choose the accounting standards applied to the company. Management takes advantage of the freedom of selection of certain accounting policies in order to provide good earnings reporting in the financial statements. This study aims to analyze the effect of firm size and good corporate governance (GCG) to earnings management with moderation variables that is audit quality. This research is a quantitative research using secondary data. The sample selection was done by purposive sampling method and the data processing method using hypothesis analysis and multigroup analysis. The data used is obtained from Indonesia Stock Exchange and processed by using Smart PLS. The results showed that firm size variables did not significantly influence positively to earnings management but t...
ABSTRACT : Profit management is a condition in which management is embarrassing to intervene in the process of preparing financial reports for external parties so that it can increase or decrease profits. profit in manufacturing companies listed on the Indonesia Stock Exchange from 2017 to 2019. The research approach used in this study is a quantitative approach using secondary data. The sampling technique used is non probability sampling with purposive sampling method. The number of samples used in this study were 90 samples. The analysis technique used is multiple linear regression. Based on the results of the study, it shows that the variable company size, the size of the board of commissioners and the audit committee has an effect on earnings management while managerial ownership has no effect on earnings management. This research is expected to be able to provide additional empirical studies for future research that examines earnings management and makes a positive contribution to investors and companies. Keywords : Company Size, Good Corporate Governance, Earnings Management
Good Corporate Governance and Earnings Management in Indonesia
2021
The purpose of this study was to analyze the effect of audit quality and audit committee on earnings management. The research population is manufacturing companies indexed on the Indonesia Stock Exchange (BEI) in the 2017-2019 period. The sample selection method used was purposive sampling. From population of 180 manufacturing companies, and by selecting certain criteria, a sample of 72 manufacturing companies was obtained. Hypothesis testing is performed using multiple linear regression using statistical software SPSS Version 26. The results of this study confirm that partially, audit quality affects earnings management and audit committee also affects earnings management. Then, hypothesis testing is also carried out simultaneously, and the result is that the quality of the audit and audit committee also affects earnings management. The practical implication of this research is that the quality of the audit and the audit committee can be a reference for investors that can be used a...
Journal of Accounting Research, Organization and Economics, 2019
Objective-This research aims to analyze: 1) The influence of institutional ownership on earnings management, 2) The influence of leverage on earnings management and 3) The influence of audit committee. Design/methodology-Population in this research is entire companies listed on the Indonesia Stock Exchange (BEI) in 2015-2017. Selection of the sample using purposive sampling method with a total of 194 companies. This research uses secondary data. The analysis used is multiple linear regression and t-test for the purpose of identifying the influence of institutional ownership, leverage, and audit committee on earnings management. Results-Findings of this research indicate that: 1) Institutional ownership had a significant effect to earnings management, with direction is positive 2) Leverage had a significant effect to earnings management, with direction is negative, and 3) audit committee had a significant effect on earnings management in positive direction.