Earnings persistence determinants in Indonesia’s consumer goods companies
Hanum Paramaratri,
Christina Tri Setyorini,
Irianing Suparlinah
Abstract:This study aims to investigate the effect of various financial factors that affect the consumer product sectors in the Indonesia Stock Exchange earnings persistence. The study employed purposive sampling, the data were collected from the 2011-2020 annual financial statements, and analyzed by utilizing panel data regression. In the consumer cyclical industry, firm size and accrual amount negatively influence earnings persistence. In contrast, the impact of fluctuating cash flow, volatile sales, and debt levels … Show more
“…Earnings management can be considered as a misleading and deceptive action from shareholders (Healy & Wahlen, 1999), or as an action that should be carried out by management (Beneish in Fatjriyati, 2020). Earnings management is a manager's option on accounting policies or measures that may affect profits reporting targets by a certain amount (Paramaratri, Setyorini, and Suparlinah 2023). However, earnings management practicesincluding the selection of accounting methods and estimates in accordance with generally accepted accounting principles (GAAP) (Pratomo and Sudibyo 2023).…”
This research aims to determine the effect of credit risk on earnings management in banking companies listed on the Indonesia Stock Exchange in 2019-2022. This research uses descriptive statistical analysis and multiple regression analysis using SPSS. The research data comes from annual financial reports obtained from the BEI website and the company's official website. Sample selection used purposive sampling technique so that 42 companies were obtained for a period of 4 years, but there were outlier data so that the total sample was 80 data. This research shows that credit risk as proxied by Gross NPL and Net NPL simultaneously influences earnings management in banking companies listed on the Indonesia Stock Exchange in 2019-2022.
“…Earnings management can be considered as a misleading and deceptive action from shareholders (Healy & Wahlen, 1999), or as an action that should be carried out by management (Beneish in Fatjriyati, 2020). Earnings management is a manager's option on accounting policies or measures that may affect profits reporting targets by a certain amount (Paramaratri, Setyorini, and Suparlinah 2023). However, earnings management practicesincluding the selection of accounting methods and estimates in accordance with generally accepted accounting principles (GAAP) (Pratomo and Sudibyo 2023).…”
This research aims to determine the effect of credit risk on earnings management in banking companies listed on the Indonesia Stock Exchange in 2019-2022. This research uses descriptive statistical analysis and multiple regression analysis using SPSS. The research data comes from annual financial reports obtained from the BEI website and the company's official website. Sample selection used purposive sampling technique so that 42 companies were obtained for a period of 4 years, but there were outlier data so that the total sample was 80 data. This research shows that credit risk as proxied by Gross NPL and Net NPL simultaneously influences earnings management in banking companies listed on the Indonesia Stock Exchange in 2019-2022.
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