scholarly journals The Effect of Board Diversity on Real Earnings Management: Empirical Evidence From Jordan

2019 ◽  
Vol 10 (5) ◽  
pp. 495
Author(s):  
Ahmad Almashaqbeh ◽  
Hasnah Shaari ◽  
Hijattulah Abdul-Jabbar
Keyword(s):  
Earnings Management ◽  
Stock Exchange ◽  
Real Earnings Management ◽  
Standard Errors ◽  
Board Members ◽  
Quantitative Methodology ◽  
Board Diversity ◽  
Age Diversity ◽  
Amman Stock Exchange ◽  
The Board Of Directors

This study considers the effect of foreign board members and age diversity on real earnings management (REM), by controlling the firm size, leverage and growth. This study employed quantitative methodology and longitudinal data for non-financial business firms, quoted on the Amman Stock Exchange from 2011 to 2015. Data were analysed using descriptive statistics and Panel Corrected Standard Errors (PCSE) regression. This study found that foreign boards member, age diversity, leverage and growth had negative and significant associations with REM. Based on the results, a firm should appoint young members to the board in addition to older members to pave the way to cross-ideology that can deter REM activities. At least one foreign director should exist within the board of directors because a foreign board member has different qualifications and experiences that may help to deter REM practices.

scholarly journals The impact of board characteristics on earnings management

2021 ◽  
Vol 10 (3) ◽  
pp. 8-17
Author(s):  
Mahmoud Mohmad Aleqab ◽  
Maha Mohammad Ighnaim
Keyword(s):  
Regression Analysis ◽  
Earnings Management ◽  
Board Of Directors ◽  
Stock Exchange ◽  
The Other ◽  
Real Earnings Management ◽  
Board Members ◽  
Amman Stock Exchange ◽  
The Board Of Directors ◽  
The Impact

This study explores the effect of the board of directors’ characteristics on real earnings management in Jordanian non-financial companies listed on the Amman Stock Exchange. The sample size is 131 companies during the period of 2015–2017. The study uses a board of directors’ size, board members’ independence, board members’ financial experience, number of board meetings, membership in more than one board, and the ownership of board members of company shares to represent the board of directors’ characteristics. Real earnings management is measured using the Roychowdhury model (2006). A multiple regression analysis (panel data) is used to investigate the effect of the board of directors’ characteristics on real earnings management. The study found a negative and statistically significant impact for both: board members’ independence and board members’ financial experience on earnings management through real activities against the previous studies’ findings, this research measured the impact of real activities. On the other hand, the study did not find any statistically significant effect of the additional earnings management variables through actual activities

scholarly journals The effect of the board diversity on firm performance: An empirical study on the UK

2021 ◽  
Vol 18 (3, special issue) ◽  
pp. 337-347
Author(s):  
Rehab EmadEldeen ◽  
Ahmed F. Elbayoumi ◽  
Mohamed A. K. Basuony ◽  
Ehab K. A. Mohamed
Keyword(s):  
Firm Performance ◽  
Stock Exchange ◽  
Gender Diversity ◽  
Cross Sectional ◽  
Board Diversity ◽  
Age Diversity ◽  
The Board Of Directors ◽  
Negative Effect ◽  
The Uk ◽  
Positive Effect

This study aims at filling existing research by examining the effect of board composition specially board diversity on firm performance using cross-sectional data from London Stock Exchange (FTSE 350) of non-financial companies with a total observations 3961 companies for the years 2000–2016. To the best of our knowledge, the contribution of this paper is to examine the effect of board diversity (age, gender, education, and nationality) of FTSE 100 and FTSE 250 on firm performance. Our results indicate that age diversity has a negative effect on firm performance, which means that young board members enhance and increase firm performance. Furthermore, education diversity has a negative effect on firm performance. On the other hand, gender diversity has positive effect on firm performance, so if companies increase the number of females in the board of directors, firm performance will increase. Ultimately, our result reveals that nationality diversity has a positive effect on firm performance.

scholarly journals Analisis Hubungan Manajemen Laba dan Struktur Kepemilikan Terhadap Kinerja Perusahaan di BEI Tahun 2016-2019

Owner ◽  
2021 ◽  
Vol 5 (2) ◽  
pp. 653-662
Author(s):  
Sari Dewi ◽  
Lisa Lisa
Keyword(s):  
Firm Performance ◽  
Earnings Management ◽  
Board Of Directors ◽  
Ownership Structure ◽  
Asset Management ◽  
Stock Exchange ◽  
Secondary Data ◽  
Real Earnings Management ◽  
The Board Of Directors ◽  
Q Model

Firm performance includes the activities produced by company management and high firm performance can be said to allow them to plan their work according to their own goals and take risks with full responsibility. This study was conducted to determine the effect of earnings management, the size of the board of directors, and ownership structure (blockholders ownership, institutional ownership, family ownership, and managerial ownership) on the firm's performance. By using sample data listed on the Indonesia Stock Exchange (IDX) from 2016 to 2019. Because there are several previous studies that produce different values ?? on firm performance. Therefore, it is necessary to re-examine this. In this study using the firm's performance with Tobin's Q model to determine the value of asset management generated by the company. The data used is panel data with secondary data collection techniques to test outliers by SPSS software version 25, then test descriptive statistics, multicollinearity, heteroscedasticity, R Square, F test, and also t-test using Eviews software version 10. The results of this study conclude that both accrual-based and real earnings management have a significant positive effect on firm performance, while the size of the board of directors has a significant negative effect on performance. The ownership structure has no significant effect on the firm's performance. The result of insignificant results could be caused by not supporting the agency theory perspective, as well as the lack of company control.

scholarly journals How does real earnings management affect firms’ future profitability? Evidence from Jordan

2020 ◽  
Vol 18 (1) ◽  
pp. 47-55
Author(s):  
Malek Alsharairi ◽  
Rasha Khamis ◽  
Mahmoud Alkhalaileh
Keyword(s):  
Developing Countries ◽  
Regression Analysis ◽  
Earnings Management ◽  
Stock Exchange ◽  
Real Earnings Management ◽  
Future Research ◽  
Ongoing Debate ◽  
Industrial Companies ◽  
Amman Stock Exchange ◽  
Channel Stuffing

This paper investigates the effects of the lagged real earnings management on the firms’ future profitability using a panel dataset (for the years 2012–2017) from the Jordanian industrial companies listed in the Amman Stock Exchange (ASE). We follow Roychowdhury (2006) to measure real earnings management using two proxies: abnormal sales (REMS) and abnormal production (REMP) in the regression analysis. Our findings reveal that real earnings management through abnormal sales has an insignificant effect on the firms’ future profitability. However, we document evidence that firms’ future profitability is adversely and significantly affected by real earnings management through abnormal production. We contribute to the ongoing debate in the literature of real earnings management and its ramifications on firms’ profitability, specifically in the context of developing countries. This research provides implications for policymakers, investors and managers regarding the potential consequences of channel stuffing practices at the different stages of the supply chain on the firm’s future profitability. Future research is suggested to focus on how real earnings management can possibly disrupt supply chains.

Pengaruh Diversitas Dewan Komisaris dan Dewan Direksi Terhadap Kinerja Perusahaan (Studi Empiris: Perusahaan Manufaktur Di BEI Periode 2014-2018)

2021 ◽  
Vol 16 (1) ◽  
pp. 68-79
Author(s):  
LILIS GUSTIANA ◽  
Yeasy Darmayanti ◽  
Meihendri Meihendri
Keyword(s):  
Hypothesis Testing ◽  
Board Of Directors ◽  
Sampling Method ◽  
Stock Exchange ◽  
Educational Background ◽  
Company Performance ◽  
Manufacturing Companies ◽  
Educational Backgrounds ◽  
Age Diversity ◽  
The Board Of Directors

This study aims to determine the effect of board of commissioners and board of directors diversity on company performance in manufacturing companies listed on the Indonesia Stock Excharge for the  2014-2018 period.  By using purposive sampling method, obtained 45 samples of manufacturing companies listed on the Indonesia Stock Exchange. Based on the results of hypothesis testing, it was found that the age diversity of the board of commissioners had no significant effect on company performance; the diversity of board of  commissioners educational  background had no significant effect on company performance, the diversity of board of commissioners tenure had a significant effect on company performance. While the diversity of board of directors age had a significant effect on company performance, diversity the of educational backgrounds of the board of directors does not have a significant effect on company performance, and the diversity of tenure of the board of directors does not have a significant effect on company performance.  Keywords : Company Performance, Age, Education, Tenure, Board Of Commissioners Board Of Directors.

scholarly journals The effect of financial distress and earnings management on tax aggressiveness with corporate governance as the moderating variable

2020 ◽  
Vol 9 (7) ◽  
pp. 167-176
Author(s):  
Ratih Pujirahayu Nugroho ◽  
Sutrisno T Sutrisno ◽  
Endang Mardiati
Keyword(s):  
Corporate Governance ◽  
Earnings Management ◽  
Financial Distress ◽  
Stock Exchange ◽  
Real Earnings Management ◽  
Audit Committees ◽  
Manufacturing Companies ◽  
Sample Collection ◽  
Financial Reports ◽  
Tax Aggressiveness

This study aims to verify the correlation between financial distress and earnings management of tax aggressiveness moderated by corporate governance. This study uses a population of manufacturing companies that publish their financial statement on the Indonesia Stock Exchange from 2017 until 2018. Sample collection was performed using a purposive sampling method, resulting in a total of 212 populations that published complete financial reports. This study was tested by using the Multiple Regression Analysis test. This research gave empirical proofs that financial distress and real earnings management positively influenced the tax aggressiveness was supported, the proportion of independent commissioners weakened the financial distress and negatively impacted the tax aggressiveness was supported, the total audit committees weakened the financial distress and negatively influenced the tax aggressiveness was not supported, the proportion of independent commissioners and total audit committees weakened the real earnings management and negatively affected the tax aggressiveness was not supported

scholarly journals IFRS ADOPTION AND EARNINGS MANAGEMENT PRACTICE: EVIDENCE FROM INDONESIA COMPANIES

2019 ◽  
Vol 7 (2) ◽  
pp. 229-239
Author(s):  
Vina Kholisa Dinuka
Keyword(s):  
Earnings Management ◽  
Management Practices ◽  
Stock Exchange ◽  
Management Practice ◽  
Real Earnings Management ◽  
Manufacturing Companies ◽  
Discretionary Accrual ◽  
Ifrs Adoption ◽  
Negative Effect ◽  
Ifrs Implementation

The purpose of this study is to verify IFRS contribution by examining the presence of Accrual Earnings Management (AEM) and Real Earnings Management (REM) in the period pre- and post- IFRS implementation in manufacturing companies in Indonesia. AEM is measured by absolute value of discretionary accrual, while REM is proxied by three measurements of REM, they are abnormal cash flow operation, abnormal production and abnormal discretionary expenses. The sample is taken from Indonesia stock exchange in 2009-2011 and 2013-2015. 2012 is Indonesia adoption period and it is excluded from the sample, because it is considerated as transitory year. This study uses regression analysis and Paired t-test to compare the presence of AEM and REM preceding and following IFRS implementation. The findings reveal that IFRS adoption has significantly negative effect towards AEM and REM. It indicates that the following IFRS implementation, AEM and REM are decrease. Therefore, IFRS is able to reduce earnings management practices in manufacturing companies in Indonesia both for AEM and REM.

scholarly journals PENGARUH INFORMASI LABA TERHADAP REAKSI PASAR DENGAN MANAJEMEN LABA RIIL DAN MANAJEMEN LABA AKRUAL SEBAGAI VARIABEL MODERASI

2019 ◽  
Vol 13 (1) ◽  
pp. 1-23
Author(s):  
Santi Santi ◽  
Kurniawati Kurniawati
Keyword(s):  
Earnings Management ◽  
Market Reaction ◽  
Stock Exchange ◽  
Real Earnings Management ◽  
Manufacturing Companies ◽  
Statistical Tool ◽  
Significance Level ◽  
Moderating Variables ◽  
Earnings Information ◽  
Final Sample

This study aims to investigate the effect of earnings information on market reaction with accrual and real earnings management as the moderating variables. The sample of this study is manufacturing companies listed in the Indonesia Stock Exchange in 2012-2015. Samples are collected by purposive sampling and resulted in 58 companies as the final sample. Data were analyzed using Moderated Regression Analysis (MRA) for testing hypothesis with significance level 5%. The statistical tool used is SPSS 22. The results of this study shown that market reacts positively significant toward earnings management and real earnings management in aggregate weaken the effect of earnings information toward market reaction. Real earnings management through discretionary expenses strengthen the effect of earnings information toward market reaction. Meanwhile, real earnings management through sales manipulation and overproduction, and accrual earnings management do not moderate the effect of earnings information toward market reaction.

scholarly journals CORPORATE GOVERNANCE DAN MANAJEMEN LABA RIIL PERBANKAN ISLAM INDONESIA DAN MALAYSIA

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.

scholarly journals CEO Characteristics and Real Earnings Management in Jordan

2020 ◽  
Vol 11 (4) ◽  
pp. 255
Author(s):  
Mohammad Abedalrahman Alhmood ◽  
Hasnah Shaari ◽  
Redhwan Al-dhamari
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Stock Exchange ◽  
Reporting Quality ◽  
Personal Characteristics ◽  
Positive Association ◽  
Real Earnings Management ◽  
Board Structure ◽  
Political Connection ◽  
Ceo Characteristics

The Chief Executive Officer (CEOs) tends to be the most influential member of a corporation as they exert control over corporate decisions such as financial disclosure, board structure, and company performance in ensuring enhanced corporate performance and earnings. The issue of earnings management (EM) that has captured the attention of researchers may be among the most critical factors that are linked to financial statement manipulation. Therefore, the current study explored the effects of the personal characteristics of CEOs on real earnings management (REM) practices in Jordan. Data of 58 companies listed on the Amman Stock Exchange for six years from 2013 to 2018 were utilised to achieve this study’s objectives. The results of this study revealed that CEOs’ experience had a significantly positive association with REM. Meanwhile, CEOs’ tenure had no impact on REM among Jordanian firms. Also, the results exposed the presence of a significantly negative association between CEO duality and REM. Finally, CEOs’ political connection was found to have a significantly positive association with REM. This study offers empirical evidence on the effect of CEO characteristics on REM and how such characteristics can lead to exploitation, which brings an impact on the financial reporting quality.

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