Earnings management determinants: Comparison between Islamic and Conventional Banks across the ASEAN region

Suripto, .

doi:10.1016/j.apmrv.2022.01.005

Cited by 7 publications

(7 citation statements)

References 38 publications

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“…Thus, Islamic banking was more able to survive in the face of the COVID-19 pandemic than conventional banking. This finding is also supported by the results of previous research (Suripto, 2022). It could be concluded that Islamic banking as a banking system based on profit sharing is more relevant during the financial crisis and can be used as an alternative system in the banking world.…”

Section: Discussionsupporting

confidence: 86%

Comparing the resilience of Sharia and conventional banking to the financial crisis in the Association of Southeast Asian Nations

Suripto,

Sugiono,

Dasuki

2023

Banks and Bank Systems

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This study aims to analyze the comparison of the resilience of Islamic and conventional banking in the Association of Southeast Asian Nations (ASEAN) during the COVID-19 pandemic. Comparison of banking resilience was proxied by the Capital Adequacy Ratio (CAR) and Loan-to-Deposit Ratio (LDR) factors, Return on Assets (ROA) and Non-Performing Loans (NPL) with the Multiple Discriminant Analysis test. In this case, the emphasis is placed on the patterns by which Islamic and conventional banking in ASEAN weathered the recent financial crisis during the COVID-19 pandemic. The explanatory and quantitative analysis also used a purposive sample strategy and SPSS to obtain and analyze data from 120-unit analyses of Islamic and conventional banks, respectively. From 2020 to 2021, traditional banks in the ASEAN region, especially in Indonesia, Malaysia, and Brunei Darussalam, were emphasized. Moreover, some data were prioritized regarding the Comparison of Resilience of Sharia and Conventional Banking in ASEAN after the COVID-19 pandemic. The results showed that conventional and Islamic banks had different resilience due to the influence of Capital Adequacy Ratio (CAR) and Loan-to-Deposit Ratio (LDR) factors, but there was no significant difference in the Return on Assets (ROA) and Non-Performing Loans (NPL). Based on the accuracy of the average prediction of 80%, conventional and Islamic bank groups had classification values of 48% and 88%, respectively. This indicated that Islamic financial institutions were more successful than conventional groups in implementing banking resilience.

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Section: Discussionsupporting

confidence: 86%

Comparing the resilience of Sharia and conventional banking to the financial crisis in the Association of Southeast Asian Nations

Suripto,

Sugiono,

Dasuki

2023

Banks and Bank Systems

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“…Profit earned by the company during the current year may be used to predict the occurrence of earnings management activities in the company. Earnings management is often used to manipulate profit and loss components in a company's financial statements (Dian et al, 2019;Sugiyanto & Candra, 2019). These attempts are done with the aim of manipulating financial information.…”

Section: Discussionmentioning

confidence: 99%

“…Earnings management is a deliberate technique to decrease or increase earnings in order to minimize instability within its earnings report, thus the company appear more stable (Dian et al, 2019;Sugiyanto & Candra, 2019). Earnings management as management's effort to keep company profits relatively stable over time (Chang et al, 2022;Hu et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

The Factors Influencing the Earnings Management in Indonesian State-Owned Enterprise Listed on the Indonesia Stock Exchange from 2016-2020

Renata,

Sakti

2022

IJSSB

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Managers' efforts to provide added value to the company can lead to conflicts of interest between agents (managers) and principals (owners). Problems may occur when relying on managers to control the company to improve company performance. This study aims to examine the factors that affect earnings management. This type of research is quantitative by using explanatory (Explanatory Research). The population in this study is State-Owned Enterprises (BUMN) listed on the Indonesia Stock Exchange. The sample of this research is 20 BUMN listed on the Indonesia Stock Exchange from 2016-2020. The sampling technique used is purposive sampling. The technique used to analyze the data is inferential statistical analysis. The hypotheses were tested using panel data regression analysis. The results showed that profitability and leverage positively affected earnings management, while size did not affect earnings management. This finding shows that SOEs' profit-generating factors and debt ownership motivate management to carry out good earnings management for their shareholders.

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“…Banks in Malaysia tend not to adopt a Loan Loss Provision (LLP) policy for income smoothing purposes, where they assume that during good economic times customers are able to pay their financing and in bad economic times, they tend to reserve a little for LLP (N. K. Sari & Widaninggar, 2020). Additionally, the mechanism for implementing good corporate governance (GCG) in these three countries can also discourage earnings management practices (Suripto, 2022).…”

Section: Effect Of Earnings Management On Bank Stabilitymentioning

confidence: 99%

The Determinants of Bank Stability: An Empirical Investigation in Southeast Asia

Sari

Sudarmawan²

2023

JESTT

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This research aimed to examine the effect of institutional quality, financing growth, and earnings management on the stability of Islamic banks in Southeast Asia for the 2014-2021 period. The sampling technique used was purposive sampling and received 11 Islamic commercial banks from Brunei Darussalam, Indonesia, and Malaysia. Data sources were obtained from each bank’s financial statements and the World Bank’s statements. The analysis method used was panel data regression analysis with Eviews 12 software. The results showed that the quality of institutions and the growth of financing had a significant effect on the stability of banks proxied by the Z-Score. The quality of institutions has a positive influence, while the growth of financing has a negative effect on banks' stability. Furthermore, the variables of earnings management have no significant impact on the stability of the bank. This research was limited to a sample of countries in Southeast Asia, so it is expected to be a reference for improving the quality of institutions to support banking performance. The implications of this study are expected to be an evaluation for banks to pay more attention to their policies in financing expansion and improve the quality of financial statements to minimize earnings management practices whose existence does not affect bank stability. Keywords: Bank stability, institutional quality, banking performance, financing ABSTRAK Penelitian ini bertujuan untuk menguji pengaruh kualitas institusi, pertumbuhan pembiayaan dan manajemen laba terhadap stabilitas bank syariah di Asia Tenggara periode 2014-2021. Teknik pengambilan sampel menggunakan metode purposive sampling dan diperoleh 11 bank umum syariah dari negara Brunei Darussalam, Indonesia dan Malaysia. Sumber data diperoleh dari laporan keuangan masing-masing perbankan dan laporan World Bank. Metode analisis yang digunakan ialah analisis regresi data panel dengan software Eviews 12. Hasil penelitian menunjukkan bahwa kualitas institusi dan pertumbuhan pembiayaan berpengaruh secara signifikan pada stabilitas bank yang diproksikan dengan Z-Score. Kualitas institusi memiliki pengaruh yang positif sedangkan pertumbuhan pembiayaan berpengaruh negatif pada stabilitas bank. Selanjutnya, variabel manajemen laba tidak berpengaruh secara signifikan pada stabilitas bank. Penelitian ini terbatas pada sampel negara di Asia Tenggara, sehingga diharapkan dapat menjadi referensi dalam meningkatkan kualitas institusi untuk menunjang kinerja perbankan. Implikasi dari penelitian ini diharapkan dapat menjadi evaluasi bagi perbankan untuk lebih memperhatikan kebijakannya dalam ekspansi pembiayaan dan meningkatkan kualitas laporan keuangan guna meminimalisir praktik manajemen laba yang keberadaanya tidak mempengaruhi stabilitas bank. Kata Kunci: Stabilitas Bank, Kualitas Institusi, Kinerja Perbankan, Pembiayaan

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Earnings management determinants: Comparison between Islamic and Conventional Banks across the ASEAN region

Cited by 7 publications

References 38 publications

Comparing the resilience of Sharia and conventional banking to the financial crisis in the Association of Southeast Asian Nations

Comparing the resilience of Sharia and conventional banking to the financial crisis in the Association of Southeast Asian Nations

The Factors Influencing the Earnings Management in Indonesian State-Owned Enterprise Listed on the Indonesia Stock Exchange from 2016-2020

The Determinants of Bank Stability: An Empirical Investigation in Southeast Asia

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