The effect of earnings management on firm performance: The moderating role of corporate governance quality

Boachie, Christopher; Mensah, Emmanuel

doi:10.1016/j.irfa.2022.102270

Cited by 56 publications

(36 citation statements)

References 106 publications

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“…Increasing earnings management activities neither requires significant investment in resources nor allows for multi‐stakeholder approval and ratification. Empirical studies have also shown that earnings management activities positively impact firm profitability, especially in emerging economies (Aribi et al, 2021; Boachie & Mensah, 2022). Therefore, in this study, we argue that when PPBA occurs, it is rational for executives to protect their interests by reducing the reliability of accounting information (e.g., more real and accrual earnings management) to enhance corporate performance.…”

Section: Hypotheses Developmentmentioning

confidence: 99%

Does performance persistence below aspirations affect firms' accounting information disclosure strategies? An empirical study based on reliability and comparability

Zhong

Ren

2023

Business Ethics Env & Resp

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Integrating the behavioral theory of the firm and agency theory, this study is the first to examine the antecedents of firms' choice to disclose low-quality accounting information from the perspective of performance persistence below aspirations. Based on empirical data of 31,326 firm-annual observations involving 3584 listed companies for the 2007-2021 period, we find that firms actively reduce accounting information reliability and comparability in the presence of performance persistence below aspirations. Furthermore, we find that CEO-CFO surname ties enhance the negative effect of performance persistence below aspirations on accounting information comparability. Finally, we find that agency costs play a mediating role in the relationship that performance persistence below aspirations has with accounting information reliability and comparability. This study is the first to examine performance persistence below aspirations and accounting information reliability and comparability. Meanwhile, this study provides important insights for policymakers to improve the quality of capital market information and for shareholders to improve the quality of corporate governance.

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Section: Hypotheses Developmentmentioning

confidence: 99%

Does performance persistence below aspirations affect firms' accounting information disclosure strategies? An empirical study based on reliability and comparability

Zhong

Ren

2023

Business Ethics Env & Resp

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“…Hal ini menunjukkan bahwa semakin tinggi rasio manajemen laba sebagai variabel moderasi memperlemah pengaruh corporate risk terhadap tax avoidance. Temuan ini tidak sejalan dengan penelitian sebelumnya yang telah dilakukan (Gerged et al, 2023;Boachie & Mensah, 2022;Sharma et al, 2011).…”

Section: Peran Manajemen Laba Memoderasi Pengaruh Corporate Risk Terh...unclassified

Taktik Pajak: Mengeksplorasi Hubungan Corporate Risk, Book Tax Differences, Tax Avoidance, dan Manajemen Laba

Muslim,

Sari

2023

jrap

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This research aims to explore the influence of corporate risk, the difference between book tax and real tax (Book Tax Differences), as well as earnings management on tax avoidance in manufacturing companies on the Indonesia Stock Exchange for the 2019-2021 period. The research method used is quantitative with descriptive analysis, involving secondary data from the company's audited financial reports. The research population includes manufacturing companies listed on the Indonesia Stock Exchange, with a sample of 87 financial reports from 2019 to 2021. The results show that company risk has a significant effect on tax avoidance, while the difference between book taxes and real taxes does not have a significant effect. Earnings management has also been proven to have a significant effect on tax avoidance. Overall, corporate risk, book tax differences, and earnings management are simultaneously significantly related to tax avoidance in manufacturing companies. Manufacturing companies tend to reduce corporate risk and implement profit management strategies to effectively avoid taxes. The implication is that practitioners and policy makers can consider increasing transparency and supervision in tax regulations to reduce loopholes exploited by companies in an effort to avoid tax obligations.

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“…Teori keagenan meyakini bahwa pengawasan yang berkualitas mampu menurunkan perilaku oportunistik yang dapat dilakukan oleh manajer selaku agen (Boachie & Mensah, 2022). Studi tentang kemampuan elemen governance dalam mempengaruhi kinerja keuangan perusahaan telah banyak dilakukan, dengan menggunakan variasi proxy governansi maupun financial distress yang beragam, sehingga menjadikan setiap penelitian terkait governansi dan financial distress menjadi keunikan tersendiri karena dilakukan adanya perbedaan rentang waktu, negara dan sampel yang digunakan dalam penelitian.…”

Section: Pendahuluanunclassified

Mekanisme Pemantauan Yang Efektif Dalam Kondisi Financial Distress

Wijaya¹,

Hermanda²

2022

Jur. Eko. Man. Akt Islam

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This study aims to explain how effective the monitoring mechanism works in conditions of financial distress. Two types of monitoring mechanisms were explored in the study namely: corporate governance and ownership monitoring mechanisms. This study uses 294 companies listed on the Indonesia Stock Exchange for 3 years. This study uses binary logistic regression to analyze the empirical data. The results of the data processing show that only the size of the board of commissioners and gender diversification can help companies deal with economic downturns. This study implies that agency theory is superior to resource dependence theory which explains that board size can optimize board performance. Abstrak Studi ini bertujuan untuk menjelaskan seberapa efektif mekanisme pemantauan bekerja dalam kondisi financial distress. Dua jenis mekanisme pemantauan dieksplorasi dalam studi yakni: tata kelola perusahaan dan mekanisme pemantauan kepemilikan. Penelitian ini menggunakan 294 perusahaan yang tercatat di Bursa Efek Indonesia selama 3 tahun. Studi ini menggunakan regresi logistik biner untuk menganalisis data empiris. Hasil olahan data menunjukkan bahwa hanya ukuran dewan komisaris dan diversifikasi gender yang mampu membantu perusahaan menghadapi kemerosotan ekonomi. Penelitian ini mengimplikasikan bahwa teori keagenan lebih unggul dibandingkan teori ketergantungan sumber daya yang menjelaskan bahwa ukuran dewan dapat mengoptimalkan kinerja dewan.

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The effect of earnings management on firm performance: The moderating role of corporate governance quality

Cited by 56 publications

References 106 publications

Does performance persistence below aspirations affect firms' accounting information disclosure strategies? An empirical study based on reliability and comparability

Does performance persistence below aspirations affect firms' accounting information disclosure strategies? An empirical study based on reliability and comparability

Taktik Pajak: Mengeksplorasi Hubungan Corporate Risk, Book Tax Differences, Tax Avoidance, dan Manajemen Laba

Mekanisme Pemantauan Yang Efektif Dalam Kondisi Financial Distress

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