The Effect of Income and Earnings Management on Firm Value: Empirical Evidence from Indonesia |
HERNAWATI, Retno Indah
(Accounting Department, Faculty of Economics and Business, Dian Nuswantoro University)
GHOZALI, Imam (Accounting Department, Faculty of Economics and Business, Diponegoro University) YUYETTA, Etna Nur Afri (Accounting Department, Faculty of Economics and Business, Diponegoro University) PRASTIWI, Andri (Accounting Department, Faculty of Economics and Business, Diponegoro University) |
1 | Scott, A., Gravelle, H., Simoens, S., Bojke, C., & Sibbald, B. (2006). Job satisfaction and quitting intentions: A structural model of British general practitioners. British Journal of Industrial Relations, 44(3), 519-540. https://doi.org/10.1111/j.1467-8543.2006.00511.x DOI |
2 | Sheikh, M. F., Bhutta, A. I., & Sultan, J. (2019). CEO compensation and unobserved firm performance in Pakistan. Journal of Asian Finance, Economics, and Business, 6(3), 305-313. https://doi.org/10.13106/jafeb.2019.vol6.no3.305 DOI |
3 | Siregar, S. V., & Utama, S. (2008). Type of earnings management and the effect of ownership structure, firm size, and corporategovernance practices: Evidence from Indonesia. The International Journal of Accounting, 43, 1-27. https://doi.org/10.1016/j.intacc.2008.01.001 DOI |
4 | Siti, P., Hesti, A. K., & Robiyanto, R. (2020). Corporate governance and earnings management practices in the Indonesian banking sector quality. Quality Access to Success, 21(176), 102-108. https://doi.org/10.1016/j.jbusres.2019.11.013 DOI |
5 | Stolowy, H., & Breton, G. (2004). Accounts manipulation: A literature review and proposed conceptual framework. Review of Accounting & Finance, 3(1), 5-66. https://doi.org/10.1108/eb043395 DOI |
6 | Stulz, R. (2013). How companies can use hedging to create shareholder value. Journal of Applied Corporate Finance, 25(4), 21-29. https://doi.org/10.1111/jacf.12038 DOI |
7 | Gill, A., Biger, N., & Mand, H. S. (2013). Earnings management, firm performance, and the value of Indian manufacturing firms. International Research Journal of Finance and Economics, 116, 120-136. https://scholarworks.waldenu.edu/sm_pubs/65/ |
8 | Gunny, K. A. (2010). The relation between earnings management using real activities manipulation and future performance: Evidence from meeting earnings benchmarks. Contemporary Accounting Research, 27(3), 855-888. https://doi.org/10.1111/j.1911-3846.2010.01029.x DOI |
9 | Handriani, E., & Robiyanto, R. (2019). Institutional ownership, independent board, board size, and firm performance: Evidence from Indonesia. Contaduria y Administracion, 64(3), 1-16. https://doi.org/10.22201/fca.24488410e.2018.1849 DOI |
10 | Haron, H., & Akhtaruddin, M. (2013). Determinants of directors' remuneration in Malaysian public listed companies. Indian Journal of Corporate Governance, 6(2), 17-41. https://doi.org/10.1177/0974686220130202 DOI |
11 | Healy, P. M., & Wahlen, J. M. (1999). A review of the earnings management literature and its implications for standard settings. Accounting Horizons, 13(4), 365-383. http://dx.doi.org/10.2308/acch.1999.13.4.365 DOI |
12 | Hermiyetti, & Manik, E. N. (2010). The influence of good corporate governance mechanism on earnings management: An emprical study in Indonesian BEI company 2006-2010. Indonesian Capital Market Review, 5, 52-63. https://doi/org/10.21002/icmr.v5i1.1583 DOI |
13 | Holthausen, R. W. (1990). Accounting method choice: opportunistic behavior, efficient contracting, and information perspectives. Journal of Accounting and Economics, 12(1-3), 207-218. https://doi.org/10.1016/0165-4101(90)90047-8 DOI |
14 | Tobin, J. (1969). A general equilibrium approach to monetary theory. Journal of Money, Credit and Banking, 1(1), 15-29. https://doi.org/10.2307/1991374 DOI |
15 | Kostyuk, A., Stiglbauer, M., & Govorun, D. (2016). The theory and practice of directors' remuneration: New challenges and opportunities. Bingley, UK: Emerald Group Publishing Limited. |
16 | Stulz, R. (2015). Risk‐taking and risk management by banks. Journal of Applied Corporate Finance, 27(1), 7-19. https://doi.org/10.1111/jacf.12099 DOI |
17 | Suprianto, E., & Setiawan, D. (2018). Impact of family control on the relationship between earning management and future performance in Indonesia. Business and Economic Horizon, 14(2), 342-354. http://dx.doi.org/10.15208/beh.2018.25 DOI |
18 | Suryani, A., & Putri, H. T. (2019). The effect of related party transactions through opportunistic behavior management to increase firm value. Journal of Finance and Banking Review, 4(2), 64-72. https://doi.org/10.35609/jfbr.2019.4.2(3) DOI |
19 | Susanto, S., & Christiawan, Y. J. (2016). The effect of earnings management on firm value. Business Accounting Review, 4(1), 205-216. https://media.neliti.com/media/publications/189888-ID-pengaruh-earnings-management-terhadap-fi.pdf |
20 | Tobin, J., & Brainard, W. (2016). On Crotty's critique of q-theory. Journal of Post Keynesian Economics, 12(4), 543-549. https://doi.org/10.1080/01603477.1990.11489817 DOI |
21 | Lin, F. L. (2011). Is earnings management opportunistic or beneficial in Taiwan ? Application of panel smooth transition regression model. International Journal of Economics and Finance, 3(1), 133-142. https://doi.org/10.5539/ijef.v3n1p133 DOI |
22 | Tong, S., & Junarsin, E. (2013). Do private firms outperform SOE firms after going public in China given their different governance characteristics? Gadjah Mada International Journal of Business, 15(2), 133-170. https://doi.org/10.22146/gamaijb.5699 DOI |
23 | Tucker, X. J., & Zarowin, P. (2006). Does income smoothing improve earnings informativeness? The Accounting Review, 81(1), 251-270. http://bear.warrington.ufl.edu/tucker/TAR_income_smoothing.pdf DOI |
24 | Watts, R. L., & Zimmerman, J. (1986). Positive accounting theory. The Accounting Review, 65(1), 131-156. https://www.jstor.org/stable/247880 |
25 | Kurniawan, I. S. (2019). Factors analysis are affecting of tax management on effective tax indicators. Journal of Accounting, 16(2), 213-221. http://journal.feb.unmul.ac.id/index.php/AKUNTABEL/article/view/5949 |
26 | Lang, L. H., Stulz, R. M., & Walkling, R. A. (1989). Managerial performance, Tobin's Q, and the gains from successful tender offers. Journal of Financial Economics, 24, 137-154. http://doi.org/10.1.1.619.7811 DOI |
27 | Mildred, A. M. (2012). The relationship between director remuneration and performance of firm listed in the Nairobi Securities Exchange [Master Thesis, School of Business of The University of Nairobi]. http://erepository.uonbi.ac.ke/handle/11295/9123 |
28 | Mohammadi, S., & Nezhad, B. M. (2015). The role of disclosure and transparency in financial reporting. International Journal of Accounting and Economics Studies, 3(1), 60. https://doi.org/10.14419/ijaes.v3i1.4549 DOI |
29 | Mohd Razali, M. W., Yee, N. S., Hwang, J. Y. T., Tak, A. H. Bin, & Kadri, N. (2018). Directors' remuneration and firm's performance: A study on Malaysian listed firm under consumer product industry. International Business Research, 11(5), 102. https://doi.org/10.5539/ibr.v11n5p102 DOI |
30 | Mulyasari, W., Sugiri, S., Herdhayinta, H., Agengtirtayasa, U. S., Mada, U. G., & Mada, U. G. (2016). Information content of earnings managements : Implications on growth and value companies. Journal of Accounting and Finance in Emerging Economies, 2(1), 47-56. https://doi.org/10.26710/jafee.v2i1.73 DOI |
31 | Neokleous, C. I. (2015). Executive compensation as a corporate governance problem. https://www1.essex.ac.uk/journals/estro/documents/issue7/Full_Issue_7.1.pdf |
32 | Purwanti, D., & Natser, G. I. (2016). Influence of the quality of accrual financial report information with the roles of accounting information system as an intervening factor. Jurnal Dinamika Akuntansi, 8(2), 84-97. https://journal.unnes.ac.id/nju/index.php/jda/article/view/9307 DOI |
33 | Pangestu, A. P., Agustia, S., & Rachman, R. A. (2019). The relationship between the remuneration of directors and financial performance of companies in Indonesia. Indonesian Accounting and Finance Studies, 2(1), 49-77. https://doi.org/10.21632/saki.2.1.49-77 DOI |
34 | Pearce, J. A., & Robinson, R. B. (2007). Strategic management: Formulation, implementation, and control (10th ed.). Jakarta: Salemba Empat Press. |
35 | Phornlaphatrachakorn, K., & Na-Kalasindhu, K. (2020). Strategic management accounting and firm performance: Evidence from finance businesses in Thailand. Journal of Asian Finance, Economics, and Business, 7(8), 309-321. https://doi.org/10.13106/JAFEB.2020.VOL7.NO8.309 DOI |
36 | Adiyaningsih, E. C. N., Hidayat, K., & Effendy, I. (2016). Tax plan analysis of income tax expenses: Article 21. Journal of Taxation, 10(1), 1-6. https://media.neliti.com/media/publications/193978-ID-tax-plan-analysis-beban-pajak-penghasila.pdf |
37 | Al-Absy, M. S. M., Ismail, K. N. I. K., Chandren, S., & Al-Dubai, S. A. A. (2020). Involvement of board chairmen in audit committees and earnings management: Evidence from Malaysia. Journal of Asian Finance, Economics, and Business, 7(8), 233-246. https://doi.org/10.13106/JAFEB.2020.VOL7. NO8.233 DOI |
38 | Al-Najjar, F., & Riahi-Belkaoui, A. (2001). Growth opportunities and earnings management. Managerial Finance, 27(12), 72-81. https://doi.org/10.1108/03074350110767457 DOI |
39 | Puspita, T., Azward, A., & Fuadah, L. (2020). The effect of committees under the board of commissioners, profitability and inventory intensity on tax aggressiveness: The Empirical study of manufacturing companies listed on the Indonesia Stock Exchange 2014-2018. Accounting and Finance, 1, 114-122. http://www.afj.org.ua/pdf/731-vpliv-komitetiv-pri-radi-upovnovazhenih-pributkovosti-ta-intensivnosti-zapasiv-na-podatkovu-optimizaciyu.pdf DOI |
40 | Resmi, S. (2012). Taxation: Theory & cases (6th ed.). Jakarta: Salemba Empat Press. |
41 | Ruparelia, R., & Njuguna, A. (2016). Relationship between board remuneration and financial performance in the Kenyan financial services industry. International Journal of Financial Research, 7(2), 247-255. https://doi.org/10.5430/ijfr.v7n2p247 DOI |
42 | Chaney, P., Faccio, M., Parsley, D., & Parsley, D. (2011). The quality of accounting information in politically connected firms. Journal of Accounting and Economics, 51(1-2), 58-76. https://doi.org/10.1016/j.jacceco.2010.07.003 DOI |
43 | Cohen, L., Marcus, A. J., Rezaee, Z., & Tehranian, H. (2011). Earnings guidance, earnings management, and share prices. International Research Journal of Finance and Economics, 116, 121-132. |
44 | Dechow, P., Sloan, R. G., & Sweeney, A. P. (1995). Detecting earnings management. The Accounting Review, 70(2), 193-225. https://www.jstor.org/stable/248303 |
45 | Ernayani, R., & Robiyanto, R. (2016). The effect of the cash flows, gross profit, and company size on Indonesian stock returns: A study on the chemical and basic industry companies during the periods of 2009-2014. International Journal of Applied Business and Economic Research, 14(3), 339-351. https://ssrn.com/abstract=2795657 |
46 | Gan, H., Park, M. S., & Suh, S. (2020). Non-financial performance measures, CEO compensation, and firms' future value. Journal of Business Research, Elsevier, 110(C), 213-177. https://doi.org/10.1016/j.jbusres.2020.01.002 DOI |
47 | Salehi, M., & Manesh, N. B. (2011). The effect of income smoothing on the informativeness of stock price: Evidence from the Tehran Stock Exchange. Asian Journal on Quality, 12(1), 80-90. https://doi.org/10.1108/15982681111140561 DOI |
48 | Saleh, I., Afifa, M. A., & Alsufy, F. (2020). Does earnings quality affect companies' performance? New Evidence from the Jordanian Market. Journal of Asian Finance, Economics, and Business, 7(11), 33-43. https://doi.org/10.13106/jafeb.2020.vol7.no11.033 DOI |