scholarly journals Is Earnings Management Informational or Opportunistic? Evidence from ASEAN Countries

2012 ◽  
Vol 14 (1) ◽  
pp. 61 ◽  
Author(s):  
Dewi Kusuma Wardani ◽  
Indra Wijaya Kusuma
Keyword(s):  
Earnings Management ◽  
The Philippines ◽  
Real Earnings Management ◽  
Earning Management ◽  
Positive Relation ◽  
Real Earning ◽  
Jones Model ◽  
Country Factors ◽  
Asean Countries

This study explores the informational and opportunistic characteristics of earnings management in ASEAN countries. Earnings management has an impact on the profitability of the companies. A positive relation between earnings management and future profitability reveals that earnings management is informational. However, negative a relation between earnings management and future profitability indicates that earnings management is opportunistic. This study uses data from the OSIRIS database. Four hundred and eighty five (485) companies from the Philippines, Indonesia, Malaysia, Singapore, and Thailand are used as a sample. This study focuses on 2 types of earnings management: (1) accrual earnings management and (2) real earning management. Modified Jones model is used for the accrual earnings management. Real earnings management follows Roychowdury (2006). The results show that the characteristics of earnings management are not consistent. Real earnings management is informational in Thailand, but opportunistic in Indonesia. Accruals earnings management is informational in the Philippines, but opportunistic in Malaysia. Country factors such as culture may explain the inconsistency of the results in ASEAN.Keywords: accruals earnings management; ASEAN countries; future profitability; informational; opportunistic; real earnings management

scholarly journals Real earnings management and borrowing costs: The moderating effect of the directors’ and officers' liability insurance

2021 ◽  
pp. 51-71
Author(s):  
Jui-I Chang ◽  
Chen-Ying Lee ◽  
Gene-Tu Lin
Keyword(s):  
Earnings Management ◽  
Manufacturing Industry ◽  
Moderating Effect ◽  
Liability Insurance ◽  
Real Earnings Management ◽  
Earning Management ◽  
Borrowing Costs ◽  
Real Earning ◽  
Borrowing Cost ◽  
Directors And Officers

Abstract The purpose of this paper is to investigate the effects of real earnings management on firm borrowing cost of public-listed in Taiwanese manufacturing industry during 2010 to 2017, and also examines the moderating effect of the directors’ and officers’ liability insurance (D&O insurance) on real earnings management and borrowing costs. The empirical results show that borrowing cost is positively related to real earning management but negatively related to D&O insurance purchase. Therefore, the firms with D&O insurance than those without have lower borrowing costs, but the higher the D&O insurance amount, the higher the borrowing costs. Furthermore, D&O insurance has a moderating effect between the real earnings management and borrowing costs. Our findings suggest the relationship between D&O insurance and real earning management, which through the D&O insurance purchasing decision to impact on corporate borrowing costs. JEL classification numbers: G22, G32, M41. Keywords: Real earnings management, Directors’ and officers' liability insurance, Borrowing costs, Moderating effect.

scholarly journals PENGARUH OTHER COMPREHENSIVE INCOME, KARAKTERISTIK KOMITE AUDIT DAN KUALITAS AUDIT TERHADAP REAL EARNING MANAGEMENT DENGAN LEVERAGE SEBAGAI VARIABEL MODERASI

2021 ◽  
Vol 8 (2) ◽  
pp. 109
Author(s):  
Dimas Rahmat Hidayat ◽  
Deden Afriyanto Perdana ◽  
Sekar Mayangsari ◽  
Lin Oktris
Keyword(s):  
Earnings Management ◽  
Audit Committee ◽  
Audit Quality ◽  
Real Earnings Management ◽  
Earning Management ◽  
Financial Leverage ◽  
Real Earning ◽  
Comprehensive Income ◽  
Financial Expertise ◽  
Other Comprehensive Income

<p><em>This study aims to analyze the effect of Other Comprehensive Income, Audit Committee Characteristics and Audit Quality on Real Earning Management with Leverage as Moderating Variable. The data used are secondary data obtained from the financial statements of manufacturing companies listed on the Indonesia Stock Exchange. This research is a research conducted by testing the hypothesis. A total of 216 samples from 57 companies with an observation period of 4 years, 2016-2019 were selected using the Data Cross Sections method. The analytical method used to test the hypothesis in this study is multiple linear regression analysis.</em><em> </em><em>The results of this study indicate that Other Comprehensive Income Variables, audit committee financial expertise, audit committee tenure, number of audit committee meetings and audit quality do not have a negative effect on real earning management while financial leverage variable has a positive effect on real earnings. management, and the financial leverage variable was not able to weaken the negative influence of the Other Comprehensive Income variable, the variable financial expertise/ financial expertise of the audit committee, the tenure of the audit committee, the number of audit committee meetings and audit quality on real earnings management.</em></p>

scholarly journals PEMBUKTIAN FENOMENA EARNING MANAGEMENT PADA PERBANKAN SYARIAH: ANALISIS LABA RIIL DAN LABA AKRUAL

2016 ◽  
Vol 6 (1) ◽  
pp. 52
Author(s):  
Ari Dewi Cahyati
Keyword(s):  
Earnings Management ◽  
Cash Flow ◽  
Secondary Data ◽  
Poor Performance ◽  
Financial Statements ◽  
Real Earnings Management ◽  
Earning Management ◽  
Islamic Banks ◽  
Mean Values ◽  
Real Earning

<p><strong>Abstract</strong><br /><br />The aim of this research is to test whether there is any earning<strong> </strong>management action at shariah banking or not’. Earning management is measured by real earning management and accrual earning management. Real earning management is indicated in the proxy of CFO abnormal, and then accrual earning management is indicated in accrual discretionary. Secondary data from Indonesia Bank web is used in this research. This study will provide useful information to the users of financial statements whether there are any actions of earnings management in Islamic banks, as a result that users of financial statements will be more careful in reading financial statements. The indication of earnings management in banking also requires attention BI as a regulator of banking in Indonesia. The results show that shariah banking doesnot carry out accrual earning management that is indicated in mean value DA of 0.00. It is found mean values for abnormal cash flow of -0.025 in real earnings management of Islamic banks which also indicates earnings management is done by minimizing the profits. Meanwhile, â1 has a positive value 0.283 and sig 0.564. This indicates that the suspect Islamic bank (poor performance) did not conduct real earnings management by manipulating the cash flow statement.</p><p><strong>Abstrak</strong><br /><br />Tujuan dari penelitian ini adalah menguji apakah terdapat tindakan earning management pada perbankan syariah. Tindakan earningmanagement ini diukur dengan earning management riil dan earning management accrual. Manajemen laba riil diindikasikan dengan proksi, yaitu abnormal CFO,sedangkan manajemen laba akrual diindikasikan dengan discretionary accrual. Data penelitian ini merupakan data sekunder yang diperoleh dari web Bank Indonesia. Manfaat penelitian ini memberikan informasi kepada pengguna laporan keuangan apakah terdapat tindakan Manajemen laba di bank syariah sehingga pengguna laporan keuangan dapat lebih teliti dalam membaca laporan keuangan. Adanya indikasi manajemen laba diperbankan juga perlu mendapat perhatian BI sebagai penyusun regulasi yang terkait dengan perbankan di Indonesia. Berdasarkan hasil penelitian ditemukan bahwa bank syariah tidak melakukan earning management accrual yang diindikasikan dengan nilai mean DA 0.00. Berdasarkan hasil olah data manajemen laba riil bank syariah ditemukan nilai mean untuk abnormal cash flow -0.025 yang juga mengindikasikan bahwa manajemen laba dilakukan dengan cara memperkecil laba. Sedangkan B1 bernilai positif 0.283 dan sig 0.564. Hal ini mengindikasikan bahwa bank syariah suspect (kinerja buruk) tidak melakukan manajemen laba riil dengan upaya memanipulasi laporan arus kas.</p>

scholarly journals The effect of the type of controlling shareholders and corporate governance on real and accruals earnings management

2015 ◽  
Vol 13 (1) ◽  
pp. 917-935
Author(s):  
Surifah
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Stock Exchange ◽  
Banking System ◽  
Real Earnings Management ◽  
Earning Management ◽  
Real Activity ◽  
Controlling Shareholders ◽  
Real Earning ◽  
Negative Impacts

This research investigates the relationship between corporate governance and preference of earnings management selected by Indonesian banking controlling shareholders. This study uses all banks listed on Indonesian Stock Exchange from 2006 until 2011 as samples. The result shows higher real earning managements and lower accruals discretionary in family-controlled banks and private institution compared to government-controlled banks. Government-controlled banks prefer accrual-based earnings management and real activity-based earnings management through operating cash flow. In the other hand, family-controlled banks and private institutions prefer real earnings management through interest expense and discretionary expenses. Foreign-controlled- banks choose earnings management through discretionary expenses. The implementation of corporate governance in Indonesia banking is high and giving negative impacts both to accrual and real-based earnings management. Concentrated ownership gives positive influences toward the accrual earning management and real earning management through discretionary expenses. The bank size has a positive and significant influence on accrual earnings management, yet its effect is negative and significant on real earning management through interest expenses. The findings contribute to the development of financial accounting literatures because there are small numbers of previous research on accrual discretionary on family-owned companies. Company does not indicate the increase of earnings quality, but it is indeed indicating that controlling family pays more attention on choosing the real activity-based earnings management to cover the expropriation. Accrual discretionary-based earnings management is intra-period reversely thus it cannot cover the permanent expropriation of controlling owners. The research also contributes to the studies of real-based earnings management measurement in banking system which has not been become a concern of research on previous studies.

scholarly journals How do Family and Managerial Ownership Structure Effect Real Earnings Management?

2021 ◽  
pp. 50-58
Author(s):  
M. Siraji ◽  
M. C. A. Nazar
Keyword(s):  
Earnings Management ◽  
Ownership Structure ◽  
Developing Economies ◽  
Stock Exchange ◽  
Real Earnings Management ◽  
Earning Management ◽  
Managerial Ownership ◽  
Management Activity ◽  
Policy Makers ◽  
Real Earning

Despite several works on corporate governance examine the ownership structure on earnings management, the empirical research on Real Earnings Management (REM) is limited. Thus, the main purpose of the research is to examine the effect of family and managerial ownership on real earnings management of selected non-financial listed companies at Colombo Stock Exchange (CSE) in Sri Lanka. The researchers use quantitative approach to address this current issue, and the data were collected using a sample of 206 firms listed at the CSE during the highest market capitalization period from 2015/2016 to 2019/2020, and eliminated the companies listed in the industry of bank, finance and insurance because the companies are governing by rules and regulation. The study found that family and managerial ownership play a prominent role and negatively related with real earning management activity. The finding of the study contributes to knowledge in earnings management of agency theory literature in developing economies, and help the investors, supplier auditors and policy makers for their decision-making activities by detecting the real earning management in different ownership structure.

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 MOTIVASI DAN STRATEGI MANAJEMEN LABA PADA ORGANISASI

2019 ◽  
Vol 8 (2) ◽  
pp. 68-80
Author(s):  
Ika Neni Kristanti
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Financial Statements ◽  
Ceo Turnover ◽  
Motivational Factors ◽  
Earning Management ◽  
Political Motivation ◽  
Jones Model ◽  
A Company

Earnings management occurs when managers use valuations in financial reporting and in compiling transactions to change financial statements so as to mislead some stakeholders regarding the underlying results that depend on reported accounting figures or to influence contract outcomes that depend on reported accounting figures. The existence of earnings management in a company is inseparable from the various types or underlying motivational factors, while some of the motivations associated with the implementation of earnings management are bonus motivation, political motivation, tax motivation, CEO turnover motivation, IPO motivation. The models used in measuring earnings management include: Healy Model, DeAngelo Model, Jones Model, Industrial Model, Jones Modification Model, Dechow-Dichev Model, Kothari Model and Stubben Model. Keywords : earning management, motivation, measuring models

scholarly journals PERSEPSI MAHASISWA PADA EARNING MANAGEMENT “STUDI KASUS MAHASISWA SEMESTER TUJUH UNIVERSITAS SURABAYA, TAHUN 2017”

2019 ◽  
Vol 12 (2) ◽  
Author(s):  
Jenifer . ◽  
Yenny Sugiarti
Keyword(s):  
Focus Group ◽  
Earnings Management ◽  
Student Perceptions ◽  
Focus Group Discussion ◽  
Management Practices ◽  
Group Discussion ◽  
Descriptive Statistics ◽  
Real Earnings Management ◽  
Earning Management ◽  
Questionnaire Data

This study aims to determine students' perceptions of earningss management practices including student’s perception about real earnings management, student’s perception regarding accrual earnings management. In addition, this study also observe whether or not student perceive difference between real earnings management and accrual earnings management. This study used questionnaires and then the data obtained will be processed using descriptive statistics of mean and mode. The results of questionnaire data that have been processed will be deepened with Focus Group Discussion (FGD). The results of this study indicate that there is no difference in student perceptions for real earnings management practices and accrual earnings management.

scholarly journals Perilaku Manajemen Laba Berdasarkan Siklus Hidup Perusahaan

2019 ◽  
Vol 1 (3) ◽  
pp. 1307-1321
Author(s):  
Chyntya Lisnawati ◽  
Nurzi Sebrina
Keyword(s):  
Life Cycle ◽  
Earnings Management ◽  
Sampling Method ◽  
Stock Exchange ◽  
Descriptive Analysis ◽  
Secondary Data ◽  
Earning Management ◽  
Manufacturing Companies ◽  
Real Earning ◽  
Start Up

This study aims to examine earnings management behavior is based on the company life cycle. This study is classified as comparative research. The population in this study are manufacturing companies listed on the Indonesian Stock Exchange period of 2013 to 2017. By using purposive sampling method, there were 61 companies as the research’s sample. Earning managements is measured through accrual earnings management and real earning management. Company life cycle is measured using the company cash flow. The type of data used is secondary data obtained from www.idx.co.id and used is descriptive analysis. The results of this study indicate that:1) company in the start up, growth, mature and decline stages tend to use real earning management, 2)there is no decrease in earnings management as the life cycle changes from start up, growth, mature and decline stages

scholarly journals The Empirical Research on the Correlation Between the Internal Control and Earning Management in Private Listed Companies

2021 ◽  
Vol 292 ◽  
pp. 02035
Author(s):  
Sheng-Nan Yan
Keyword(s):  
Control System ◽  
Earnings Management ◽  
Negative Correlation ◽  
Internal Control ◽  
Significant Negative Correlation ◽  
Listed Companies ◽  
Real Earnings Management ◽  
Earning Management ◽  
Internal Control System ◽  
Accrued Earnings

Under the background of industrial innovation, this paper takes the data of private listed companies from 2011 to 2016 as the sample for empirical analysis, and finds that internal control is an important factor in earnings management. There is a significant negative correlation between internal control and accrued earnings management and real earnings management. That is to say, having a good and rigorous internal control system can effectively reduce earnings management. Moreover, compared with earnings management of accounting selective activities, internal control has more restrictive effect on earnings management of real activities.

Sign in / Sign up

Export Citation Format

Share Document