THE INFLUENCES OF GOOD CORPORATE GOVERNANCE AND PROFITABILITY ON EARNINGS MANAGEMENT AT COMMERCIAL BANKS BY PANEL DATA REGRESSION ANALYSIS
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Sep 26, 2022
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Abstract
The company's financial statements are needed by external parties in assessing performance to obtain information related to the financial condition of a company. This financial report is processed by the management team in order to carry out earnings management to be shown to external parties by increasing or decreasing profits in order to get a good impression and obtain personal benefits. This study will be examined the effect of Good Corporate Governance (GCG) and profitability (ROA and ROE) on earnings management (discretionary accruals) from data of 16 commercial sharia and conventional banking companies in Indonesia from 2016-2020 using panel data regression analysis. The results showed that simultaneously, 11.28% of earnings management being influenced by GCG, ROA, and ROE. Only the ROA and ROE variables had a significant impact on earnings management. Based on this discussion, recommendations for further research are to add more other variables to see their effect on earnings management and compare the results when applied using other methods.
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LADINI, Urwawuska et al.
THE INFLUENCES OF GOOD CORPORATE GOVERNANCE AND PROFITABILITY ON EARNINGS MANAGEMENT AT COMMERCIAL BANKS BY PANEL DATA REGRESSION ANALYSIS.
Proceedings of the International Conference of Islamic Economics and Business (ICONIES), [S.l.], v. 8, n. 1, p. 503-508, sep. 2022.
ISSN 2541-3333.
Available at: <http://conferences.uin-malang.ac.id/index.php/iconies/article/view/1738>. Date accessed: 26 apr. 2024.
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References
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Lestari, Kurnia Cahya;, and S. Oky Wulandari. 2019. “Pengaruh Profitabilitas Terhadap Manajemen Laba.” Jurnal Akademi Akuntansi 2(1). doi: 10.22219/jaa.v2i1.7878.
Mahrani, Mayang, and Noorlailie Soewarno. 2018. “The Effect of Good Corporate Governance Mechanism and Corporate Social Responsibility on Financial Performance with Earnings Management as Mediating Variable.” Emerald Insight 3(1):41–60. doi: 10.1108/AJAR-06-2018-0008.
Nurianah. 2019. “What Is Earning Management in Sharia Bank Lower than Conventional Bank?” Journal of Islamic Accounting and Finance Research 1(1):97. doi: 10.21580/jiafr.2019.1.1.3730.
Putri, Firstian Andrea, and Nera Marinda Machdar. 2017. “Pengaruh Asimetri Informasi Arus Kas Bebas Dan Ukuran Perusahaan Terhadap Manajemen Laba.” KALBISOCIO Jurnal Bisnis Dan Komunikasi 4:83–92.
Riadiani, Ajeng Rizka, and Agus Wahyudin. 2015. “Pengaruh Good Corporate Governance Terhadap Manajemen Laba Dengan Financial Distress Sebagai Intervening.” Accounting Analysis Journal 4(3):1–9.
Rusdianto; Narsa, I. Made. 2020. “The Effect of Company Size , Leverage and Return on Asset on Earnings Management : Case Study Indonesian.” Revista Espacios 41(17):25.
Umam, Khotibul; Utomo, Setiawan Budi. 2016. Perbankan Syariah: Dasar-Dasar Dan Dinamika Perkembangannya Di Indonesia. Jakarta: Raja Grafindo.
Utami, Wikan Budi. 2017. “Analysis of Current Ratio Changes Effect, Asset Ratio Debt, Total Asset Turnover, Return On Asset, and Price Earning Ratio in Predicting Growth Income by Considering Corporate Size in The Company Joined in LQ45 Index Year 2013 -2016.” International Journal of Economics, Business and Accounting Research (IJEBAR) 1(01). doi: 10.29040/ijebar.v1i01.253.
Widyaningsih, Atik Handayani, and Muhammad Arif. 2022. “Panel Data Analysis of Government Policy on Human Development Index in Central Java Province.” Proceedings of the International Conference on Economics and Business Studies (ICOEBS 2022) 655(Icoebs):396–403. doi: 10.2991/aebmr.k.220602.052.
Wowor, Janna C. J;, Jenny; Morasa, and Sintje Rondonuwu. 2021. “Pengaruh Profitabilitas Terhadap Manajemen Laba Oada Perusahaan Sektor Consumer Goods Industry Di Bursa Efek Indonesia (BEI).” Jurnal Emba: Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi 9(1):589–99.
Wulandari. 2022. “Pengaruh Good Corporate Governance, Profitabilitas Terhadap Manajemen Laba Pada Bank Umum Syairah Di Indonesia Periode 2016-2020.” UIN Sulthan Thaha Saifuddin Jambi.
Zulfikar, Rizka. 2018. “Estimation Model and Selection Method of Panel Data Regression: An Overview of Common Effect, Fixed Effect, and Random Effect Model.” JEMA: Jurnal Ilmiah Bidang Akuntansi 1–10.