Effect of audit committee characteristics on relationship between financial distress and income maximization actions

Partha, I Made Bana

doi:10.29332/ijssh.v3n3.343

Cited by 5 publications

(4 citation statements)

References 5 publications

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“…As Hamdani [34] summarized, an influential audit committee expects to change different policies in the next few years to achieve accounting profits, thereby avoiding financial problems. This study's results are consistent with previous research conducted by [36], which showed that audit committees have a negative and significant impact on financial distress. As we all know, the audit committee usually has direct access to every company's control element.…”

Section: Discussionsupporting

confidence: 92%

Financial Distress of Registered Banking in Indonesia STOCK Exchange: Review of the Good Corporate Governance Aspect and Banking Performance

Kurniasih

2021

EJBMR

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This study aims to analyse the effect of good corporate governance (GCG) mechanisms and financial performance on the Financial Distress of banks listed on the Indonesia Stock Exchange. What utilized a quantitative approach to collect the data. And the causal research design is used to examine the influences. The research population was 45 banks which are listed on the Indonesia Stock Exchange in 2019. The sample of this research was 15 banks that met the sampling criteria by purposive sampling. The results showed that Institutional, Managerial, Independent Commissioner Board Composition, Audit Committee, CAR, and LDR significantly affected financial distress. The Non-Performing Loan (NPL) has a positive and significant impact on economic desperation.

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Section: Discussionsupporting

confidence: 92%

Financial Distress of Registered Banking in Indonesia STOCK Exchange: Review of the Good Corporate Governance Aspect and Banking Performance

Kurniasih

2021

EJBMR

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“…This has resulted in many companies and issuers on the Indonesia Stock Exchange (IDX) being very vulnerable to being faced with financial difficulties. The analytical technique used in this research is to carry out quantitative analysis which is expressed by numbers that are calculated using statistical methods assisted by the statistical data processing program SPSS (Statistical Product and Service Solution) (Nuryani et al, 2018;Partha et al, 2019). The resulting moderating regression equation is as follows.…”

Section: Methodsmentioning

confidence: 99%

Profitability moderate the effect of operating capacity and intellectual capital on financial distress

Winata

Budiasih²

2022

ijbem

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Financial distress is the stage of declining financial conditions experienced by the company before the occurrence of bankruptcy or liquidity. This study aims to examine the effect of operating capacity and intellectual capital on financial distress with profitability as a moderating variable. The population in this study are property and real estate companies listed on the Indonesia Stock Exchange. The sample in this study amounted to 12 property and real estate companies during the 2016-2020 period. Sampling using purposive sampling method. The analytical tools used in this research are multiple linear analysis and Moderated Regression Analysis (MRA). Based on the results of the study, it shows that operating capacity has a positive effect on financial distress, intellectual capital has a negative effect on financial distress, profitability can moderate the effect of operating capacity on financial distress and profitability cannot moderate the influence of intellectual capital on financial distress.

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“…At the same time, companies with high profits encourage management to manage earnings by maximizing income because it will be more attractive to shareholders and potential investors. Therefore, companies tend to carry out earnings management with income maximization to show that the profits generated by the company have increased (Hidayah and Subowo, 2019;Partha et al, 2019). However, when companies with too high profits will raise the taxes that must be paid.…”

Section: Return On Assets and Earnings Managementmentioning

confidence: 99%

Debt Ratio, Return on Asset, Firm Size and Earnings Management: Age Moderation

Soesetio¹,

Subagyo²,

Istanti³

et al. 2023

JAM

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Earnings management still become a phenomenon both in Indonesia and abroad. Many cases of earnings management practices have occurred and the company's amount of leverage is one of the drivers of earnings management practices. This research aims to examine and describe the relationship between various debt policy, profitability, and company size on earning management moderated by firm age. The selected samples were 102 companies listed on the Indonesia Stock Exchange (IDX) in 2010-2018. The independent variables in this study include DER, bank debt, short-term debt and long-term debt, age, and company size. Earnings management as the dependent variable in this study uses the Modified Jones Model. The results of the regression equation analysis show that all debt policy proxies consistently have a negative and significant effect on earnings management. Furthermore, the company's experience as a proxy for firm age strengthens the relationship between debt policy and earnings management practices. More interestingly, specifically among the three debt policies, bank debt is the policy that is most able to represent the influence on earnings management practices. This indicates that the most effective monitoring of earnings management practices comes from banking institutions. Overall, the profit information shown in financial statements is the product of earnings management, so the level of quality of financial reports is deserving of close inspection and prudence when making decisions based simply on profit information.

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Effect of audit committee characteristics on relationship between financial distress and income maximization actions

Cited by 5 publications

References 5 publications

Financial Distress of Registered Banking in Indonesia STOCK Exchange: Review of the Good Corporate Governance Aspect and Banking Performance

Financial Distress of Registered Banking in Indonesia STOCK Exchange: Review of the Good Corporate Governance Aspect and Banking Performance

Profitability moderate the effect of operating capacity and intellectual capital on financial distress

Debt Ratio, Return on Asset, Firm Size and Earnings Management: Age Moderation

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