Analysis of the impact of Leverage, Value Added and Size on Earning Management and Financial Performance of Indonesian Shariah Banking

Irawati, Nisrul; Marlina, Lisa; Sipayung, Friska

doi:10.2991/icoi-19.2019.69

Cited by 7 publications

(8 citation statements)

References 11 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This is reinforced by the observation of Laura and Cristina (2014); Uwalonma, Uwuigbe and Okorie (2015), that company size is a business attribute that gives a propensity to manage earnings, Leverage was found to have a significant and positive influence on conglomerate firms' earnings management in Nigeria. This positive association is in support of the research result of Shehu and Jubril (2012); Moussa, et al (2013); Irawati, Marlina & Sipayung (2019) that the higher leverage increases the possibility of earnings management. Furthermore, profitability has a positive relationship with earnings management which indicates that if current profit is high, managers would engage in the management of their earnings if they want their firms to survive amidst the worries of staying afloat with dwindling cash flow of the company as corroborated by Aziatul, et al (2015).…”

Section: Discussion Of Findingssupporting

confidence: 79%

Management Entrenchment, Firm Characteristics and Earnings Management Of Conglomerate Companies In Nigeria

Fagbemi

Osemene

Agbaje

2020

JAB

View full text Add to dashboard Cite

Sometimes the rivalry between shareholders and management is an indication of the level of entrenchment within the corporate environment. Managers are believed to routinely manipulate earnings in order to mislead shareholders about their company's actual economic outlook or performance. As a result, the study investigated the impact of managerial entrenchment, firm characteristics and earnings management of conglomerate companies in Nigeria. Employing the ex-post facto research design, the data was gathered from secondary source of the 6 listed conglomerate companies for the 11-year period running (2008-2018). The study used discretionary accruals a proxy for earnings management and to calculate discretionary accruals, the study used modified Jones model. The result showed that management entrenchment and firm characteristics have Impact on multinational firms ' earnings management in Nigeria. Specifically, from the conglomerate’s entrenchment proxies, CEO’s tenure has a positive and significant impact on earnings management (coff. =1.062821, p-value =0.0367) and management entrenchment as measured by CEO’s shareholding has a negative and insignificant effect on earnings management (coff. =-6252391, p-value = 0.4090) while firm size, profitability and leverage indicated a significant and positive impact on earnings management (coff, = 0.124587, p-value = 0.0000; coff. = 0.006647, p-value = 0.0431 and coff. = 0.032065, p-value = 0.0000). The study therefore recommended among others that management should reduce the debt in their capital structure in order to improve their companies’ value and their capital structure should be majorly financed by equity rather than debt and reduce CEOs tenure to minimise earnings management practices.

show abstract

Section: Discussion Of Findingssupporting

confidence: 79%

Management Entrenchment, Firm Characteristics and Earnings Management Of Conglomerate Companies In Nigeria

Fagbemi

Osemene

Agbaje

2020

JAB

View full text Add to dashboard Cite

show abstract

“…Several previous studies found that leverage take positive effect and significant impact on earnings management as reported by (Wiyadi, Trisnawati, Sasongko, & Fauzi, 2015), (Alfina & Sambuaga, 2021), (Widyasmara, Andika, & Saputri, 2021), (Asim & Ismail, 2019), and (Irawati, Marlina, & Sipayung, 2019). Based on previous research, this study proposes the following hypothesis H1.…”

Section: The Effect Of Leverage On Corruption Fraud Proxied By Earnin...mentioning

confidence: 66%

Factors Affecting Earning Management in Companies on the Indonesia Stock Exchange: Study of Fraud and Corruption Practices

Assagaf¹,

Sayidah²,

Albab³

et al. 2022

jeb

View full text Add to dashboard Cite

This study examines the phenomenon of corruption fraud proxied by earning management in companies listed on the Indonesia Stock Exchange. This study uses the variables of leverage, capital expenditure, and profitability as key variables influencing earning management practices that lead to fraud and corruption. This study uses time-series data from 2017 to 2021 and selects a sample by purposive sampling of as many as 28 companies listed on the Indonesia Stock Exchange. The study's results found that the key variables of leverage, capital expenditure, and profitability turned out to have a positive and significant effect on corruption fraud proxied by earning management. This research contributes mainly to the management of shareholders, practitioners, and investors to predict the possibility of earning management practices that lead to corruption and fraud committed by the company. The originality of this research is mainly in measuring corruption and fraud projected by earning management, thus providing a reference for future research.

show abstract

“…Several previous studies found that leveragetake effectpositive and significant impact on earnings management as reported by [11,12,13,14,15].…”

Section: The Effect Of Leverage On Corruption Fraud Proxies Earning M...mentioning

confidence: 80%

Determinants of Corporate Earnings Management on the Indonesian Stock Exchange: An Empirical Study of Fraud and Corruption

Assagaf

Sayidah

Albab

et al. 2022

AJEBA

View full text Add to dashboard Cite

This study aims to examine the phenomenon of corruption fraud which is proxied by earning management in companies listed on the Indonesia Stock Exchange. This study uses the variables of leverage, capital expenditure, and profitability as key variables that influence earning management practices that lead to fraud and corruption. This study uses time-series data from 2017 to 2021 and selects a sample by purposive sampling of as many as 28 companies listed on the Indonesia Stock Exchange. The results of the study found that the key variables of leverage, capital expenditure, and profitability, turned out to have a positive and significant effect on corruption fraud which was proxied by earning management. The contribution of this research is mainly to the management of shareholders, practitioners, and investors to predict the possibility of earning management practices that lead to corruption fraud committed by the company. The originality of this research is mainly in measuring corruption fraud which is projected by earning management, thus providing a reference for future research.

show abstract

Analysis of the impact of Leverage, Value Added and Size on Earning Management and Financial Performance of Indonesian Shariah Banking

Cited by 7 publications

References 11 publications

Management Entrenchment, Firm Characteristics and Earnings Management Of Conglomerate Companies In Nigeria

Management Entrenchment, Firm Characteristics and Earnings Management Of Conglomerate Companies In Nigeria

Factors Affecting Earning Management in Companies on the Indonesia Stock Exchange: Study of Fraud and Corruption Practices

Determinants of Corporate Earnings Management on the Indonesian Stock Exchange: An Empirical Study of Fraud and Corruption

Contact Info

Product

Resources

About