Opportunistic Behavior, External Monitoring Mechanisms, Corporate Governance, and Earnings Management
Objective - The purpose of this research is to analyze the effect of motivational bonus, leverage, firm size, corporate governance (audit committee's size, the proportion of independent commissioners, institutional ownership, managerial ownership) and free cash flow on earnings management.Methodology/Techniques - Earnings management is analyzed in this research using the modified Jones model. The population for the research consists of manufacturing companies listed on the Indonesian Stock Exchange (IDX) between 2013-2015. The final sample includes 60 manufacturing companies.Findings - The result of this study indicate that motivational bonus, leverage, firm size and free cash flow have an influence on earnings management practices. Motivational bonuses and free cash flow as opportunistic behavior also influence earnings management. In addition, leverage and firm size as external monitoring mechanism influence earnings management practices while audit committee size, the proportion of independent commissioners, institutional ownership and managerial ownership as corporate governance practices in companies has no significant effect on earnings management practices. Hence, it is concluded that corporate governance has no effect on earnings management practices in Indonesia
Year of publication: |
2018
|
---|---|
Authors: | Chandra, Agustina |
Other Persons: | Wimelda, Linda (contributor) |
Publisher: |
[2018]: [S.l.] : SSRN |
Subject: | Corporate Governance | Corporate governance | Bilanzpolitik | Accounting policy | Prinzipal-Agent-Theorie | Agency theory | Theorie | Theory |
Saved in:
freely available
Extent: | 1 Online-Ressource (9 p) |
---|---|
Type of publication: | Book / Working Paper |
Language: | English |
Notes: | In: Acc. Fin. Review 3 (1) 44 – 52 (2018) Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 11, 2018 erstellt |
Classification: | G34 - Mergers; Acquisitions; Restructuring; Corporate Governance ; g02 |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10012924011
Saved in favorites
Similar items by subject
-
Corporate Governance and the Cult of Agency
Heaton, J.B., (2020)
-
Timely loss recognition and termination of unprofitable projects
Srivastava, Anup, (2015)
-
Prasetyo, Indra, (2022)
- More ...
Similar items by person
-
The effect of financial institution ownership on firm value
Wimelda, Linda, (2017)
- More ...