Koneksi Politik Dan Praktik Manajemen Laba Riil: Studi Pada Industri Keuangan Di Indonesia

Abstract

The aim of the research is to find empirical evidence of the impact of political ties on the management of actual earnings in the Indonesian financial industry. Earnings management in this study is measured by real earnings management, namely abnormal CFO and abnormal discretionary expense, as well as the value of Allowance for Impairment Losses (CKPN). The research sample is 98 companies that are members of the financial industry listed on the Indonesia Stock Exchange (IDX) for the 2018-2020 period with a total of 294 observations. This research used the panel data regression analysis technique. The results showed that the politically connected board of commissioners had a positive effect on earnings management as measured by abnormal CFO and CKPN, but had no effect on earnings management as measured by abnormal discretionary expense. Meanwhile, the politically connected board of directors was found to have no effect on earnings management, either as measured by abnormal CFO, abnormal discretionary expense, or CKPN. This research provides additional empirical evidence that is advantagoues for several parties such as companies, investors and regulators regarding the consideration of political connected council that have a negative effect on earnings management. The results of this study support the agency theory that political connections increase agency problems through earnings management practices.

Apakah Komisaris Independen Memoderasi Hubungan Koneksi Politik, Kepemilikan Institusional, Dan Manajemen Laba?

“…Hasil penelitian ini sejalan dengan Putri (2022) yang menyatakan bahwa dewan direksi terkoneksi politik berpengaruh signifikan negatif terhadap manajemen laba. Dewan direksi yang terkoneksi politik terindikasi hanya berperan sebagai perlindungan politik, sehingga tidak akan berpengaruh terhadap kegiatan dan keputusan perusahaan.…”

“…Koneksi politik adalah kondisi dimana ada hubungan antara pihak tertentu dengan pihak lain yang mempunyai ketertarikan pada politik untuk mencapai sesuatu hal yang dapat menguntungkan kedua belah pihak (Purwanti & Sugiyarti, 2017). Variabel ini diukur menggunakan rumus sebagai berikut: (Supatmi & Handayani, 2022).…”

The Effect of Political Connection, Independent Commissioners And Sales Growth On Earning Management with Company Size as A Moderating Variable

“…Political relationships are believed to significantly help company managers achieve company growth, and serve as a valuable resource for the company (Wati, 2022). Research conducted by (Supatmi & Putri, 2022) states that Political Connection has a positive effect on Profit Management. The results of the study are in line with the research conducted by (Alhmood, Shaari, & Al-dhamari, 2020) and (Ghonji Feshki et al, 2020).…”

“…The size of a company is closely related to the connections that the company has, the larger the size of the company, the more people involved in the company's operational activities and opens up the opportunity for greater political connections within the company. According to (Supatmi & Putri, 2022) stated that when the company's board is connected politically, it will encourage profit management, one of the forms of profit management actions carried out is to maximize profits in order to get greater bonuses and these actions can protect the company from debt agreements. Thus there is the possibility of the company's management maximizing profits by reducing discretionary expenses such as research and development costs, advertising costs, sales, administrative and general costs.…”

“…This study was conducted to determine the factors that affect profit management by testing whether there is an influence between political connections, independent commissioners and sales growth on profit management with company size as a moderation variable. (Supatmi & Putri, 2022) stated that there are findings that support the agency theory, where when the company's board is connected politically, it will encourage profit management, one of the forms of profit management actions carried out is to maximize profits in order to get greater bonuses and these actions can protect the company from debt agreements.…”