THE EFFECT OF CORPORATE GOVERNANCE MECHANISM ON EARNINGS MANAGEMENT PRACTICE (Case Study on Indonesia Manufacturing Industry)

Susanto, Yulius Kurnia

doi:10.34208/jba.v15i2.146

Cited by 39 publications

(54 citation statements)

References 21 publications

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“…Ngamchom shows that board independence has negative correlation with earnings management [3]. This study has the same result with Xie et al, Johari el al, and Susanto et al [12][13][14], the greater the number of independent directors in the company, the better monitoring over management, which will reduce earnings management practices. On the contrary, Abdullah using data from Kuala Lumpur Stock Exchange (KLSE) showed that there's no significant relationship between board independence and earnings management [11].…”

Section: H1 Board Size Has Influence On Earnings Management B Board supporting

confidence: 78%

“…The empirical evidence from Susanto research showed that woman in audit committees negatively correlated to earnings management [4]. This result is supported by Man and Qi [18,19], female audit committees tend to be risk-averse to fraud and engage in less earnings management.…”

Section: G Audit Committees Woman and Earnings Managementmentioning

confidence: 85%

“…Qi and Tian argues that female audit committees may be more conservative and have higher ethical level than male audit committees [19]. Female audit committees are seen as the watcher of the management company to carry out activities of the company in accordance with the wishes of the principal, which increases the value of the company [4].…”

Section: G Audit Committees Woman and Earnings Managementmentioning

confidence: 99%

“…This research is a development from Ngamchom and Susanto [3][4][5]. The independent variables used [3] are board size, board independence, CEO duality, directors expertise, board meetings, proportion of an audit committee, audit committee expertise, audit committee meetings, concentrated shareholders and type of shareholders with the highest proportion of the company.…”

Section: Introductionmentioning

confidence: 99%

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Audit Committee: Woman, Experience, Education on Earnings Management

Florencea¹,

Susanto²

2019

Proceedings of the 5th Annual International Conference on Accounting Research (AICAR 2018)

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The purpose of this research is to obtain empirical evidence about the effect of board size, board independence, directors expertise, board meetings, audit committee expertise, audit committee meetings, audit committee woman, audit committee education, concentrated shareholders, and managerial ownership on earnings management. The population in this research is all listed manufacturing companies in Indonesia Stock Exchange during 2013 to 2016. Samples are obtained through purposive sampling method, in which 66 listed manufacturing companies in Indonesia Stock Exchange meet the sampling criteria resulting 264 data available are taken as sample. Multiple linear regressions and hypothesis testing are used as the data analysis method in this research. The result of this research shows that audit committee woman statistically has influence earnings management. While board size, board independence, directors expertise, board meetings, audit committee expertise, audit committee meetings, audit committee education, concentrated shareholders, and managerial ownership statistically do not have influence earnings management. If the number of woman in audit committee is higher, the level of earnings management will be lower and vice versa. Woman audit committee may be more conservative and have higher ethical value.

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Section: H1 Board Size Has Influence On Earnings Management B Board supporting

confidence: 78%

Section: G Audit Committees Woman and Earnings Managementmentioning

confidence: 85%

Section: G Audit Committees Woman and Earnings Managementmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Audit Committee: Woman, Experience, Education on Earnings Management

Florencea¹,

Susanto²

2019

Proceedings of the 5th Annual International Conference on Accounting Research (AICAR 2018)

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“…Profitability is measured by the proxy of ROA measurement that is the ratio between net profit after tax which is obtained with total assets of company (Alzoubi 2016). (9) Leverage is the percentage of company assets financed by using debt (Susanto, 2013).…”

Section: (7)mentioning

confidence: 99%

Company Financial Ratios, Company Ownership and Company Conditions on Earnings Management

Djashan

Lawira

2018

Proceedings of the 7th International Conference on Entrepreneurship and Business Management

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Recently, high-level scandals and financial crises that have occurred in several countries have brought issues of corporate governance to the forefront of developing countries, emerging markets and transitional economies. This scandal shook the integrity of accounting information and resulted in a decline in investor confidence. This has made the company need to achieve significant progress to carry out corporate governance to restore investor confidence in the quality of financial reporting. To achieve this, this paper proposes a conceptual framework to investigate the relationship between financial ratios (profitability, leverage and operating cash flow), ownership (Institutional ownership and managerial ownership), and company condition (board size, firm size, sales growth) to earnings management among manufacturing companies listed on the Indonesia Stock Exchange (IDX). Evidence from previous research shows that the company's financial ratios (profitability) that have large profits and meet targets has very little chance of manipulating earnings. 44

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Digitalization in small and medium enterprise: a parsimonious model of digitalization of accounting information for sustainable innovation ecosystem value generation

Pham

2022

APJIE

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Purpose This study aims to dispense a concrete and coherent picture on the role of digitalization of accounting information (DOAI) among the small and medium-sized enterprises (SMEs) through a statistically reliable and parsimonious paradigm for procuring the impact of DOAI on sustainable innovation ecosystem (SIE) and public value (PV) generation. With this cue, the geographical scope of this tentative manuscript was framed in SMEs of developing countries. Design/methodology/approach A three-pronged methodology was disposed in this research, namely, literature review, expert interviews and self-administered survey. Qualitative data was procured from a series of semi-structured in-depth interviews. The quantitative data was drawn on a self-administered survey in which the closed-ended questionnaires were conveniently circulated to a cross-sectional sample of 583 respondents. The data captured from quantitative approach was processed and analyzed via covariance-based structural equation modeling with AMOS 26.0. Findings The outcomes analysis highlighted that there were significant positive associations between the hypothesized constructs regarding significance and effect size. These interlinks were also partially mediated through the mediation of quality of information on financial reports and SIE. Research limitations/implications This research was bounded by geographical provenance emphasis on one country and relative smallness of the data set procured through anonymous survey-based approach drawn from a convenient sample of digitally savvy respondents working in one sub-sector resulted in the reduction in the robustness and generalizability of the observations. Nevertheless, these above-mentioned limitations could thus offer the starting points for novel avenues creation for the future research. Practical implications The practitioners would definitely have valuable benefits from in-depth insights on the obtained findings. Concretely, as lifting the degree of understandings on the magnitude of long-term cooperation and superior coordination within the SIE would enable practitioners to enlarge their business viewpoints to better cope with the challenges of complicated business settings, facilitating them to co-create PV for all their key stakeholders through giving priority to implementing DOAI. Social implications Society could benefit from this study if policymakers and the influencers of government focus on innovative features and assure the possible environment for innovation deployment through embarking on introducing policies that would facilitate the digitalization as well as stimulate and incentivize establishing the SIE for PV generation. It would be good for both the SMEs and society when SMEs could thrive in community settings as well as this togetherness. Originality/value Unpacking the potential of DOAI has been considered as the promising research avenues that are outlined not only to redress the shortfall in the research stream in relation to the digitalization among SMEs but also provide the right directions for sustainable development among SMEs.

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THE EFFECT OF CORPORATE GOVERNANCE MECHANISM ON EARNINGS MANAGEMENT PRACTICE (Case Study on Indonesia Manufacturing Industry)

Cited by 39 publications

References 21 publications

Audit Committee: Woman, Experience, Education on Earnings Management

Audit Committee: Woman, Experience, Education on Earnings Management

Company Financial Ratios, Company Ownership and Company Conditions on Earnings Management

Digitalization in small and medium enterprise: a parsimonious model of digitalization of accounting information for sustainable innovation ecosystem value generation

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