The purpose of the study is to analysis wheter management did Earning Management with approach discretionary loss loan provision and use 5 indicator of bank operation performance at bank sharia for the period 2011 -2016. Based on empirical result from the bank sharia financial report, the study find: (1) the two earnings-related variables, namely earnings before loan loss provisions and one-year-ahead earnings, are significantly related to discretionary loan loss provision; (2) non-performing loans ratio is are not found to be significantly linked to discretionary loan loss provisions, but bad debts coverage ratio and capital adeuqcy ratio are significantly linked to discretionary loan loss provisions. Finally, our findings indicate that bank managers may use discretionary loan loss provisions to engage in earnings management when the earnings before loan loss provisions.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.