The Effect of CEO Compensation on Earnings Management: Is It Affected by Leverage Condition?

Elizabeth, Jessica; Djaja, Vania Nanda; Christiawan, Yulius Jogi

doi:10.2991/aebmr.k.211124.021

Cited by 1 publication

(1 citation statement)

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“…CEO compensation indicates that it insignificantly affects bank earnings management. This finding is aligned with the previous study by (Jessica et al, 2021), which found that compared to a CEO with huge remuneration, the CEO with lesser compensation has more guts to control profits. Also, this study's result supports the agency theory, whereas the agent-principal relationship affects the company's Management.…”

Section: Discussionsupporting

confidence: 91%

Board Gender Diversity, CEO Characteristics, And Earning Management In The Banking Sector

Salsabilla,

Yossi Diantimala,

Indayani

et al. 2024

Jurnal Akuntansi

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The study examines the effect of board gender diversity and CEO characteristics – CEO age, CEO tenure, and CEO compensation – on earning Management in the banking sector listed on the Indonesian Stock Exchange in 2019-2022. The data of 188 bank– years was obtained from banks’ annual reports taken from the IDX and the bank's official website. Data were analysed by using descriptive statistics and panel data regression. The data fit in with the Common Effect Model (CEM). The results show that earnings management in the banking sector is not caused by gender diversity but is affected significantly by CEO age and tenure. The results support the upper echelon theory. The results fill the gap of previous studies, especially in the banking sector, and provide insight into the role of board gender diversity on earning Management in developing countries that can synthesise the outcome to learn from their governance system.

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Section: Discussionsupporting

confidence: 91%