Accrual Earnings Management and Real Earnings Management: Increase or Destroy Firm Value?

Darmawan, I Putu Edi; Sutrisno, Tri; Mardiati, Endang

doi:10.18415/ijmmu.v6i2.551

Cited by 38 publications

(44 citation statements)

References 13 publications

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“…A small number of studies identify the positive role of DAC in signaling future performance (Robin & Wu, 2015;Dechow et al, 2019;Darmawan et al, 2019;Chen & Gong, 2019). These studies focus in particular on the impact of DAC on investor decisions, by reference to the stock market.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Discretionary Accruals on Firm Growth. Empirical Evidence for Smes From Emerging Europe

Anton

Carp

2020

Journal of Business Economics and Management

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The aim of the paper is to assess the effect of discretionary accruals on firm growth while controlling for firm characteristics and macroeconomic environment. Employing a large sample of 1.105 young and high-growth firms (gazelles) from 15 emerging European countries over the period 2006–2014, it has been found that the discretionary accruals negatively influence firm growth. The empirical results suggest that discretionary accruals are used as earnings management tools and this practice is more used over the high-growth period (2006–2009), with negative effects on future performance. Furthermore, the results of the quantile regression employed in the whole period suggest that the earnings management practices have a negative effect on firm growth. The results prove to be robust for different estimation approaches and different sub-samples of gazelles. The findings provide empirical evidence for the need for more detailed information provided by firms on the origin of the accruals, as well as for the use in the performance analysis of some indicators that eliminate the influence of accruals, such as cash flow based ratios.

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Section: Introductionmentioning

confidence: 99%

The Effect of Discretionary Accruals on Firm Growth. Empirical Evidence for Smes From Emerging Europe

Anton

Carp

2020

Journal of Business Economics and Management

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“…For example, Gill et al (2013) concluded the more intense the practice of earnings management, the greater the adverse effect on Indian firms' return on assets. Darmawan et al (2019) also indicated that real earnings management harms manufacturing firms' value on the Indonesia Stock Exchange from 2013 to 2017. In Nigeria, Okafor et al (2018) realized that earnings management and corporate value are correlated negatively.…”

Section: Earnings Management and Corporate Performancementioning

confidence: 99%

“…So far, some research has been done on the impact of earnings management on corporate financial performance (Tabassum et al 2013;Gill et al 2013;Mehrani and Noruzi 2015;Rodriguez-Ariza et al 2016;Sayari and Omri 2017;Okafor et al 2018;Darmawan et al 2019;Khuong et al 2019;Abbas and Ayub 2019;Mostafa 2020;Zhang and Ayisi 2020;Dakhlallh et al 2020;Nobakht and Acar 2021), while some others have focused on the relationship between related party transactions and firm value (Cheung et al 2006;Xiao and Zhao 2009;Kohlbeck and Mayhew 2010;Pozzoli and Venuti 2014;Tambunan et al 2017;Fazli 2019;Hendratama and Barokah 2020;Ashrafi et al 2020), each of which has had different results for various reasons. This gap is fully felt in the research literature to simultaneously examine the effects of earnings management as well as related party transactions on corporate financial performance during a financial crisis.…”

Section: Introductionmentioning

confidence: 99%

Earnings Management, Related Party Transactions and Corporate Performance: The Moderating Role of Internal Control

Zimon

Appolloni

Tarighi

et al. 2021

Risks

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The primary purpose of this study is to investigate the impacts of earnings management (EM) and related party transactions (RPTs) on corporate financial performance in an emerging market, Iran. This paper also aims to examine the moderating role of internal control weakness (ICW) in the relationship between them. The study sample includes 108 Iranian manufacturing companies listed on the Tehran Stock Exchange (TSE) between 2013 and 2018, and panel data with random effects are used to test the hypotheses. When an accounting-based measure called ROA is defined as a proxy for corporate performance, the results show that there is a negative association between real earnings management (REM) and corporate financial situation, while accrual-based earnings management (AEM) and firm value are correlated positively. However, when Tobin’s Q index is defined as a proxy for corporate performance, we do not find any significant association between them. Consistent with the tunneling hypothesis or agency theory, our findings confirm RPTs damage corporate value (ROA and Tobin’s Q) because managers probably consider it a mechanism to exploit enterprise resources owing to existing conflictual interests. Moreover, purchase-related party transactions lead to lower ROA, whereas sale-related party transactions and Tobin’s Q are correlated negatively. Moreover, weak internal control has a positive moderating influence on the linkage between AEM and Tobin’s Q index. Finally, we provide robust evidence that there is a positive association between sale growth and institutional owners with ROA and Tobin’s Q, although financial leverage and mergers and acquisitions (M&A) have a destructive effect on corporate value.

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“…Menurut Darmawan et al (2019), manajemen laba dapat terjadi ketika manajer menggunakan valuasi dan menyusun transkasi untuk merubah laporan keuangan sehingga beberapa pihak salah mengartikan performa ekonomi perusahaan atau mempegaruhi perjanjian kontrak yang tergantung pada angka akuntansi. Toumeh dan Yahya (2019) menjelaskan setidaknya tujuh teknik popular dalam manajemen laba, yaitu:…”

Section: Manajemen Labaunclassified

“…Manajemen laba yang menjadi acuan adalah manajemen laba akrual atau metode pencatatan akuntansi dan manajemen laba riil yang berasal dari aktivitas operasi perusahaan. Kedua pendekatan tersebut menunjukkan bahwa terdapat peran manajerial yang ingin mengatur laba menjadi lebih tinggi atau lebih rendah untuk kepentingan memberi sinyal yang baik terhadap prinsipal (Darmawan et al, 2019). H2: Manajemen laba memengaruhi persistensi laba di industri transportasi di Indonesia.…”

Section: Manajemen Laba Dan Persistensi Labaunclassified

Apakah Manajemen Laba dilakukan untuk Tax Planning atau untuk Menjadikan Laba Lebih Persisten?

Sari

Pinasthika

2021

j.manage.bus.rev.

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Penelitian ini bertujuan untuk mengkaji bagaimana manajemen laba yang dilakukan perusahaan memengaruhi besaran pajak dan persistensi laba, khususnya dalam bisnis transportasi di Indonesia. Penelitian ini menjadi penting karena dalam Pedoman Standar Akuntansi Keuangan (PSAK) tidak diatur secara jelas batasan dalam melakukan manajemen laba, sehingga dapat menimbulkan berbagai potensi kecurangan yang akhirnya melanggar PSAK maupun Peraturan Undang-undang terkait penyajian laporan keuangan. Penelitian ini menggunakan perusahaan transportasi sebagai sampel, dengan jumlah data observasi sebanyak 70 laporan keuangan selama tahun 2014-2018, rentang waktu penelitian selama 5 tahun. Hasil penelitian ini membuktikan bahwa manajemen laba tidak berpengaruh terhadap tax planning dan persistensi laba dikarenakan metode pengakuan laba dari setiap perusahan yang berbeda. Peran dari agen menjadi kunci dari laba yang persisten sebagai sinyal kepada principal. Dari hasil penelitian ini, peneliti menduga bahwa aktivitas riil perusahaan merepresentasikan kondisi laba dan metode pengakuan tidak memiliki hubugan terhadap persistensi laba. Penulis menduga bahwa perusahaan tidak dapat melakukan manajemen laba dan tax planning secara bersamaan..

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Accrual Earnings Management and Real Earnings Management: Increase or Destroy Firm Value?

Cited by 38 publications

References 13 publications

The Effect of Discretionary Accruals on Firm Growth. Empirical Evidence for Smes From Emerging Europe

The Effect of Discretionary Accruals on Firm Growth. Empirical Evidence for Smes From Emerging Europe

Earnings Management, Related Party Transactions and Corporate Performance: The Moderating Role of Internal Control

Apakah Manajemen Laba dilakukan untuk Tax Planning atau untuk Menjadikan Laba Lebih Persisten?

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