Abstract
This study aims to determine the differences in Earnings Management and the effect of Institutional Ownership, Managerial Ownership, Audit Committee Competencies, Capital Adequacy Ratio (CAR), and Nonperforming Loan (NPL) on Earnings Management proxied by Discretionary Loan Loss Provision (DLLP) pre and post-PSAK 109 implementation in Indonesian bank listed on the Indonesian Stock Exchange (IDX). This study uses Ordinary Least Square (OLS) regression and Wilcoxon signed-rank test to test the hypothesis. The study used the period pre and post implementation of PSAK 109. We traced each bank's financial report listed on the IDX from 2017 to 2020 to anticipate early implementation. Using purposive sampling, we obtained 40 pre-PSAK 109 and 40 post-PSAK 109 bank samples. This study found no difference in earnings management pre and post-PSAK 109. Institutional Ownership, Managerial Ownership, and Audit Committee Competencies do not affect Earnings Management pre and post-PSAK 109. NPL is positively related to Earnings Management pre and post-PSAK 109, and CAR is positively related to Earnings Management pre-PSAK 109 but has no effect on Earnings Management post-PSAK 109. This study provides additional information for standard setters and OJK regarding monitoring earnings management practices in banking pre and post-PSAK 109.
Published Version
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
