Implementation of Corporate Governance Influence to Earnings Management

Riwayati, Hedwigis Esti; Markonah,; Siladjaja, Muljanto

doi:10.1016/j.sbspro.2016.05.044

Cited by 15 publications

(14 citation statements)

References 10 publications

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“…The board of commissioners as part of corporate members has collective duties in supervising and advising the board of directors as well as controlling the implementation of GCG at any level of organization. The relationship between factors of corporate governance and earnings management has been investigated by Cornett, McNutt, & Tehranian (2009); Lo, Wong, & Firth (2010); Shan (2015); Riwayati, Markonah, & Siladjaja, (2016); and Xue, & Hong (2016). In addition, a study by Sun, Liu, & Lan (2011) described women in top supervisory as more ethical than men in top supervisory.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

Women on boards and earnings management: What really matters?

Hala

2019

Jurnal Keuangan Dan Perbankan

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The diversity of gender and income conservatism has been intriguing topics over the last decade. The effect of women who are more likely to be financially conservative than men will bring impact on the practices of conservative accounting, particularly when determining revenues for corporate governance. Therefore, we investigate the effects of women leaders in corporate business and their impacts on earnings management. The population of the study includes companies indexed in the Indonesia Stock Exchange, except for banking corporates. By using purposive sampling, 341 companies were selected for observation within six years. Total population sampling is 2046 data (firmyears). Hypothesis testing employed the multiple regression model on panel data with the Ordinary Least Square (OLS) approach. The estimation result of the Jones Model indicates women in top supervisory have no significant effect on earnings management while women in top management have a negative significant effect on earnings management. In addition, the hypothesis testing with the Kothari model demonstrates a negative significant effect of both women in top supervisory and women in top management toward earnings management. Therefore, we justify that women in top supervisory and women in top management bring prominent contributions to corporate business mainly in the financial sector, particularly in the improvement of financial reports by reducing the likelihood of earnings management practices.

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Section: Hypotheses Developmentmentioning

confidence: 99%

Women on boards and earnings management: What really matters?

Hala

2019

Jurnal Keuangan Dan Perbankan

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“…This study looked at the influence of corporate governance mechanisms with other control variables on accrual-based and real transaction earnings management of firms listed in Nigeria and Ghana. Most studies used econometric models to establish the relationship between earnings management and firm value like Sajid and Afza (2018), Li (2018), and Zhang et al (2018) for corporate governance and earnings management research like the study of Chen et al (2019) and Hedwigis et al (2016), but our study uses ACO and KNN chemometrics to determining the calibration and prediction of corporate governance mechanisms in reducing earnings management activities by managers. The study revealed three major corporate governance sub-indexes such as board disclosure (BDI), ownership structure (OWS), and SHRIT with other control variables such as size, age, cash flow, and growth influencing AM.…”

Section: Discussionmentioning

confidence: 99%

“…Various studies have focused on dimensions of earnings management on firm value like Sajid andAfza (2018), L. Li (2019), Yang et al (2015), and Zhang et al (2018) for corporate governance and earnings management research like Chen et al (2019) and Hedwigis et al (2016), but limited studies have been conducted in West African region. Base on the above, the study aims at assessing the impact of corporate governance mechanisms on both Accrual-Based Transaction Earnings Management (AM) and Real Transaction Earnings Management (RM) in the two main leading economies in West Africa, Nigeria, and Ghana, using Ant Colony Optimization (ACO) and K-Nearest Neighbor (KNN).…”

Section: Introductionmentioning

confidence: 99%

The Predictive Power of K-Nearest Neighbor (KNN): The Effect of Corporate Governance Mechanisms on Earnings Management

Coleman

Bawuah

2020

SAGE Open

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This study investigates the long-run effect of corporate governance mechanisms on earnings management of listed companies in Nigeria and Ghana. The study uses Ant Colony Optimization (ACO) and K-Nearest Neighbor (KNN) in establishing a long-run effect of good corporate mechanisms in reducing earnings management practice by corporate managers. ACO selected four major corporate governance mechanisms: Board Procedure Index, Board Disclosure Index, Ownership Structure Index, and Shareholders’ Rights Index; these were the key corporate governance mechanisms that influence the reduction in earnings management activities. KNN produced a strong significant longitudinal effect of implementing good corporate governance mechanisms in decreasing the manipulating behavior of managers. Quality corporate governance mechanisms’ implementation reduces the opportunistic behavior of corporate managers in manipulating earnings. Therefore, the study alert policymakers the urgency in setting up appropriate policies to enhance the reduction in earnings management practices to provide accurate financial information for stakeholders’ financial decision-making. The use of ACO and KNN in the study is a great novelty, which presents a calibration and prediction of the impact of corporate governance mechanisms on earnings management showing the rate of reduction.

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“…TABEL Corporate Governance (selanjutnya disebut GCG). GCG mampu mengarahkan dan mengendalikan perusahaan agar tercapai keseimbangan antara kekuatan dan kewenangan perusahaan [7]. Pernyataan ini senadan dengan pernyataan Baird (2000) bahwa salah satu akar penyebab timbulnya krisis moneter di Indonesia adalah buruknya pelaksanaan GCG di lembaga perbankan nasional, baik yang dimiliki pemerintah (BUMN/BUMD), pihak swasta, maupun kepemilikan campuran dengan bank asing [15].…”

Section: Pendahuluanunclassified

Budaya Perusahaan: Penerapan Good Corporare Governance Serta Implikasinya Terhadap Keberlanjutan Kinerja Bank

Supriyatna¹,

Yulianto²,

Hamdani³

et al. 2019

BIEJ

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Kinerja merupakan suatu proses manajemen yang dirancang untuk menghubungkan tujuan organisasi dengan tujuan individu sedemikian rupa, sehingga baik tujuan individu maupun tujuan korporasi dapat bertemu. Ukuran dari kinerja perusahaan sangatlah bermacam-macam dan berbeda-beda dari satu industri ke industri lainnya tergantung pada aktivitas pokok perusahaan seperti produksi, keuangan, pemasaran, sumber daya manusia, jasa dan banyak lagi kegiatan usaha lainnya. Pada penelitian ini, jenis industri yang akan diteliti bergerak di bidang jasa perbankan. Kinerja keuangan adalah salah satu tolak ukur dalam menilai suatu bank dan kondisi keuangan yang bagus cenderung menarik perhatian investor. Dalam hubungannya dengan kinerja, laporan keuangan sering dijadikan dasar untuk penilaian kinerja bank karena dapat menunjukkan posisi keuangan dan juga indikator kinerja. Berdasarkan data kinerja dan rasio keuangan perbankan nasional pada tahun 2013 – 2017, dapat dilihat bahwa tren kinerja perbankan cenderung fluktuatif dari tahun ke tahun. Salah satu penyebab turunnya kinerja dan rasio keuangan adalah penerapan Good Corporate Governance (GCG) yang kurang baik. Permasalahan mengenai kinerja perbankan selaras dengan data statistik GCG yang dikeluarkan oleh LPPI pada tahun 2018, dimana rata-rata peringkat GCG untuk Bank Umum Kategori Usaha (BUKU) 1 dan 2 berada di atas standar standar industri perbankan. Selama ini, penerapan GCG dilakukan pada tingkat corporate dan kurang optimalnya implementasi GCG yang dilakukan di tingkat unit bisnis maupun tingkat operasional / fungsional. Pemodelan dari kerangka penelitian dirancang dengan menggunakan model persamaan struktural atau Structural Equation Model (SEM) yang merupakan pendekatan terintegrasi antara Analisis Faktor, Model Struktural dan Path Analysis. Berdasarkan fenomena yang terjadi pada industri perbankan di Indonesia, maka kerangka pemikiran penelitian yang akan ditelaah adalah mengetahui gambaran keberlanjutan kinerja pada industri perbankan di Indonesia yang merupakan dampak dari penerapan GCG yang didukung oleh budaya perusahaan.

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Implementation of Corporate Governance Influence to Earnings Management

Cited by 15 publications

References 10 publications

Women on boards and earnings management: What really matters?

Women on boards and earnings management: What really matters?

The Predictive Power of K-Nearest Neighbor (KNN): The Effect of Corporate Governance Mechanisms on Earnings Management

Budaya Perusahaan: Penerapan Good Corporare Governance Serta Implikasinya Terhadap Keberlanjutan Kinerja Bank

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