Browse > Article
http://dx.doi.org/10.13106/jafeb.2021.vol8.no8.0085

Factors Affecting Real Earning Management: Evidence from Indonesia Stock Exchange  

SIAHAYA, Septina Louisa (Accounting Department, State Polytechnic of Ambon Maluku)
SANDANAFU, Sally Paulina (Accounting Department, State Polytechnic of Ambon Maluku)
APONNO, Chrestiana (Accounting Department, State Polytechnic of Ambon Maluku)
SADUBBUN, Vury Lilian Angela (Accounting Department, State Polytechnic of Ambon Maluku)
Publication Information
The Journal of Asian Finance, Economics and Business / v.8, no.8, 2021 , pp. 85-91 More about this Journal
Abstract
This research aims to analyze the impact of Financial Risk (FR), Information Asymmetric (IA), and Earning Power (EP) on Real Earning Management (REM) of listed trading companies in IDX Indonesia. This study aims to analyze the influence of FR, IA, EP, on REM through Operating Cash Flow, Production expense, and Discretionary Expense. The study employs an unbalanced panel of data set from 2014 to 2018 on the activity of all trading companies (15 in total) as selected samples of 48 feasible samples from 144 existing data. The sample used a non probability sampling method with a purposive sampling technique. This research was classified as causative and tested by multiple linear regression model with cross-sectional analysis. The result indicated a significant impact of FR on REM through PROD and DISX but not through COF. How ever, IA, and EP showed significant impact on REM by means of COF but not go by PROD and DISX..The findings in this study contribute to the users of financial reports particularly the stakeholders in defining the determinants of real earning management practices among firms when it comes to decision making.
Keywords
Financial Risk; Information Asymmetric; Earning Power; Real Earning Management; Indonesia Stock Exchange;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Damayanti, A., & Musadieq, M. A. (2017). The Effect of Financial Risk and Environmental Risk on Earnings: A Case Study of State Saving Bank (BTN) PT Bank Tabungan Negara Ltd. for the period of 2006-2015. Business Administration Journal, 46(2), 9-18. http://www.administrasibisnis.studentjournal.ub.ac.id
2 Ado, A. B., Ademola, L. S., Mustapha, A. U., Rashid, N., (2020). The Financial Eterminants of Earnings Management and The Profitability of Listed Companies in Nigeria. Journal of Critical Reviews, 7(9), 31-36. https://doi.org/10.31838/jcr.07.09.06   DOI
3 Chae, S. J., Fujitani R., & Nakano, M. (2020). Financial Reporting Opacity, Audit Quality, and Crash Risk: Evidence from Japan. Journal of Asian Finance, Economics, and Business, 7(1), 9-17. https://doi.org/10.13106/jafeb.2020.vol7.no1.9   DOI
4 Dadbeh, F., & Mogharebi, N. (2013). A Study on The Effect of Information Asymmetry on Earning Management: Evidence from Tehran Stock Exchange. Management Science Letters, 3(7), 2166-2166. https://doi.org/10.5267/j.msl.203.06.001   DOI
5 Dang, H. T., Phan, D., Nguyen, T., & Hoang, L. H. T. (2020). Factors Affecting Financial Risk: Evidence from Listed Enterprises in Vietnam. Journal of Asian Finance, Economics, and Business, 7(9), 11-18. https://doi.org/10.13106/jafeb.2020.vol7.no9.011   DOI
6 Fatma, N., & Hidayat, W. (2019). Earnings Persistence, Earnings Power, and Equity Valuation in Consumer Goods Firms. Asian Journal of Accounting Research, 5(1), 3-13. https://doi.org/10.1108/ajar-05-2019-0041   DOI
7 Mortezaee, M., & Sanji, D. (2016). Financial Risk Management: A Comparative Study Between Iranian Banks. International Journal of Research - Granthaalaah, 4(12), 17-23. https://doi.org/10. 29121/granthaalayah.v4.i12.2016.2387   DOI
8 Ali, B., & Kamardin, H. (2018). Real Earnings management: AReview of The Literature and Future Research. Asian Journal of Finance & Accounting, 10(1), 440. https://doi.org/10.5296//ajfa.v10i1.13282   DOI
9 Kulapathi, S., Madaphati, S. K., Samineni, R. K., & Puppala, R. B. (2021). A Study on Unfolding Asymmetric Volatility: A Case Study of National Stock Exchange in India. Journal of Asian Finance, Economics, and Business, 8(4), 857-861. http:///doi.org/10.13106/jafeb.2021.vol8.no4.0857   DOI
10 Isac, N. S., Rahman, R. A., & Zamria, N. (2013), The Impact of Leverage on Real Earnings Management. Procedia Economics and Finance, 7, 86-95. http://doi.org/10.1016/S2212-5671(13)00222-0   DOI
11 Zhang, Z. (2015). Under-performance of listed companies, real earnings management, and M&A: Chinese Empirical Evidence. Journal of Industrial Engineering and Management, 8(2), 322-334. https://doi.org/10.3926/jiem.1330   DOI
12 Ghozali, I., Hernawati, R. I., Yuetta, E. N., & Prastiwi, A. (2021). The Effect of Income and Earnings Management on Firm Value: Empirical evidence from Indonesia. Journal of Asian Finance, Economics, and Business, 8(4), 105-112. https://doi.org/10.13106/jafeb.2021.vol8.no4.0105   DOI
13 Onuora, A. C., Okonkwo, F. C., & Okafor, I. (2020). Corporate Cash Management and The Nigerian Industrial Sector's Earning Power: A Case in Point. International Journal of Advanced Science and Technology, 29(7), 14275-14290. https://serc.org/journals/index.php/IJAST/article/view/ 30649
14 Azemi, N., M., Ghani, E. K., Puspitasari, E. (2017). The Effect of Information Asymmetry and Environmental Uncertainty on Earnings Management Practices Among Malaysian Technology-Based Firms. International Journal of Academic Research in Economics and Management Sciences, 6(1), 17-26. https://doi.org/10.6007/ijarems/v6-i1/2617   DOI