Manipulation of Earnings: The Pressure of Opportunistic Behavior and Monitoring Mechanisms in Malaysian Shariah-compliant Companies

Suffian, Mohd Taufik Mohd; Sanusi, Zuraidah Mohd; Osman, Amir Hakim; Azhari, Muhammad Iqbal Mohamed

doi:10.1016/s2212-5671(15)01223-x

Cited by 8 publications

(14 citation statements)

References 29 publications

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“…Examining the Tyco, Adelphia, Global Crossings, HealthSouth, Freddie Mac, and Fannie Mae cases, Giroux (2008) reports that earnings management had a direct association with these scandals. Similarly, Suffian et al (2015) conclude that there is a high correlation between opportunistic managerial behavior and earnings manipulation and that both factors cannot be dissociated.…”

Section: Introductionmentioning

confidence: 91%

Examining Managerial Misbehavior in Asian Banks through Loan Loss Provisions*☆

Saona

Azad

2020

Asia-Pac J of Fin Stud

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This paper reviews the impact of corporate ownership concentration, insider ownership, and the development of regulatory and financial systems on the opportunistic behavior of managers to alter financial reporting. By using the panel data technique with a sample of banks from 25 Asian countries, the major findings indicate that ownership concentration as well as insider ownership positively impact the banks’ accrual‐based earnings management. Results also reveal that an improvement in regulatory and financial systems restricts executives’ capacity to manage earnings. Islamic banking and IFRS adoption reduce the manipulation of earnings. Policy implications from the results are also discussed.

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Section: Introductionmentioning

confidence: 91%

Examining Managerial Misbehavior in Asian Banks through Loan Loss Provisions*☆

Saona

Azad

2020

Asia-Pac J of Fin Stud

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“…Penelitian mengenai pengaruh financial distress terhadap manajemen laba sudah per-nah dilakukan sebelumnya. Financial distress terbukti dapat menyebabkan kenaikan dari tindakan manajemen laba riil (Muljono & Suk, 2018;Suffian et al, 2015). Disisi lain, Li et al, 2021dan Rusci et al, 2021 mengungkapkan bahwa financial distress mempunyai pengaruh yang negatif terhadap manajemen laba riil.…”

Section: Pendahuluanunclassified

“…Mekanisme corporate governance tersebut diantaranya kepemilikan institusional, kepemilikan manajerial dan komite audit (Asward, 2012;Kurniawan, 2018;Eksandy, 2018;Nisasmara & Musdholifah, 2016;Puspitasari & Nugrahanti, 2016;dan Putra & Kusnoegroho, 2021). Pada penelitian sebelumnya, mekanisme tersebut ditemukan berpengaruh dan terbukti mengurangi konflik agensi (Mahiswari & Nugroho, 2016;Suprianto et al, 2017;Yapono & Khomsatun, 2018). Penerapan mekanisme corporate governance diduga dapat memperlemah pengaruh financial distress terhadap manajemen laba, karena menjamin akuntabilitas manajemen kepada stakeholder serta meningkatkan kinerja…”

Section: Pendahuluanunclassified

“…Menurut Suffian et al (2015), risiko financial distress tinggi menyebabkan manipulasi la-ba karena manajer ingin mengurangi risiko kebangkrutan dengan memperlihatkan laba yang menguntungkan. Sementara itu, perusahaan dengan tingkat financial distress tinggi mengindikasikan terjadinya manajemen laba melalui transaksi riil (Campa & Camacho-Mi-ñano, 2015).…”

Section: Financial Distress Terhadap Manajemen Labaunclassified

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Financial Distress terhadap Manajemen Laba Dengan Mekanisme Corporate Governance sebagai Pemoderasi

Damayanti

Nugrahanti²

2022

AFRE

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This study aims to determine the effect of financial distress on earnings management with corporate governance mechanisms as a moderating variable. Earnings management in this study is measured by real earnings management, namely abnormal operating cash flows. The level of financial distress in this study is proxied by leverage. This study uses 135 samples of manufacturing companies listed on the Indonesia Stock Exchange (IDX) in 2018-2020 with a total of 405 observations. This study uses Generalized Least Square (GLS) panel data regression. The results showed that financial distress had a positive effect on earnings management as measured by abnormal CFO. This study also found that managerial ownership and institutional ownership weakens the positive influence of financial distress on earnings management as measured by abnormal CFO.DOI: DOI: https://doi.org/10.26905/afr.v5i2.7762

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“…Ketika perusahaan memperoleh pinjaman, kreditor akan mengawasi kinerja manajer untuk memastikan bahwa pinjaman yang diberikan dapat tertagih. Dengan demikian, ruang gerak manajer untuk melakukan manipulasi informasi menjadi lebih kecil (Suffian et al, 2015;Suriyani et al, 2015;Uwuigbe et al, 2015;Nurdiniah dan Herlina, 2015;Nawaiseh, 2016;Charfeddine et al, 2013;Hamid et al, 2014;Fei, 2015;Ghazali et al, 2015;Gombola et al, 2016).…”

Section: Pendahuluan Latar Belakangunclassified

Analisis Perilaku Oportunistik, Mekanisme Pengawasan Dan Manajemen Laba Pada Perbankan Konvensional Indonesia

Ramli

Joe

2019

JMIEB

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Tujuan penelitian adalah untuk menganalisis pengaruh perilaku oportunistik (diproksikan leverage dan kebijakan dividen) dan mekanisme pengawasan (yang diproksikan dengan kualitas audit dan inkonsistensi informasi) terhadap manajemen laba. Populasi yang dijadikan obyek penelitian berjumlah 43 perusahaan perbankan yang terdaftar di Bursa Efek Indonesia pada tahun 2010-2016. Penelitian ini menggunakan data panel dengan jumlah data observasi sebanyak 70. Data sekunder diolah dengan metode structural equation model dengan pendekatan partial least square. Hasil penelitian menunjukkan bahwa leverage dan kebijakan dividen merupakan perilaku oportunistik yang mempengaruhi positif signifikan terhadap manajemen laba. Kualitas audit dan inkonsistensi informasi nonkeuangan berhubungan positif dengan mekanisme pengawasan. Mekanisme pengawasan beserta indikatornya mempengaruhi positif signifikan terhadap manajemen laba pada bank umum konvensional. The purpose of this study is to analyze the predictive effect of opportunistic behavior (proxied by leverage and dividend policy) and monitoring mechanism (proxied by audit quality and inconsistency of nonfinancial information) on earnings management. Population of this reseacrh taken as the object of observation amounted to 43 banking firms listed in Indonesia Stock Exchange in the period 2010 - 2016. This research is using panel data with total data amounted to 70 firm-years observation. Secondary data is processed with structural equation model method with partial least square approach. The result showed leverage and dividend policy are opportunistic behaviours that impact positively and significant on earnings management. Audit quality and inconsistency of nonfinancial information are significant indicators of monitoring mechanism. Monitoring mechanism and its indicators have positive and significant impact on earnings management in Conventional Commercial Banks.

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Manipulation of Earnings: The Pressure of Opportunistic Behavior and Monitoring Mechanisms in Malaysian Shariah-compliant Companies

Cited by 8 publications

References 29 publications

Examining Managerial Misbehavior in Asian Banks through Loan Loss Provisions*☆

Examining Managerial Misbehavior in Asian Banks through Loan Loss Provisions*☆

Financial Distress terhadap Manajemen Laba Dengan Mekanisme Corporate Governance sebagai Pemoderasi

Analisis Perilaku Oportunistik, Mekanisme Pengawasan Dan Manajemen Laba Pada Perbankan Konvensional Indonesia

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