Affect Earnings Management Research Articles

PENGARUH PERENCANAAN PAJAK, LEVERAGE DAN UKURAN PERUSAHAAN TERHADAP MANAJEMEN LABA PADA PERUSAHAAN MANUFAKTUR SEKTOR INDUSTRI BARANG KONSUMSI YANG TERDAFTAR DI BEI PADA TAHUN 2017-2021

The purpose of this study is to examine and explain the effect of tax planning, leverage, and company size on manufacturing companies in the consumer goods industry sector which are listed at the Indonesian Stock Exchange in 2017-2021. This research was conducted at the Indonesia Stock Exchange for manufacturing companies in the consumer goods industry sector using secondary data and a purposive sampling method. The data analysis method used is quantitative analysis using descriptive statistics, panel data regression analysis, and hypothesis testing using E-views version 10. The results of this research show that tax planning and firm size have no significant effect on earnings management. Leverage have a no significant effect on earnings management. Simultaneously tax planning, leverage, and firm size affect earnings management.

TAX PLANNING, DEFERRED TAX EXPENSE, AND LIQUIDITY ON EARNINGS MANAGEMENT WITH FIRM SIZE AS VARIABEL CONTROL

Companies have the ability to manipulate taxes and defer the tax burden to create high liquidity, which can be used as a tool in earnings management. However, in companies of larger size, transparency in financial reporting and better oversight systems can discourage earnings management practices. This study aims to evaluate the impact of these three factors on the practice of earnings management, with the size of the company as a control variable. This research is descriptive research with quantitative approach. The Data used is secondary data in the form of financial statements from 44 food & beverage companies listed on the IDX during the 2018-2021 period. The results showed that Tax planning does not affect earnings management. Deferred tax expense does not affect earnings management. Liquidity affects earnings management. Tax planning with the size of the company as a control variable does not affect earnings management. Deferred tax expense with the size of the company as a control variable affects earnings management. Liquidity with the size of the company as a control variable affects earnings management. Tax Planning, deferred tax costs, and liquidity with the size of the company as a control variable affect earnings management.

The Effect of Tax Planning and Deferred Tax Charges on Earning Management

This study wants to find out whether tax planning affects earnings management, whether deferred tax expenses affect earnings management, and whether tax planning and deferred tax expenses simultaneously affect earnings management. Through a quantitative approach, explanatory research is used. In determining the sample, the authors used purposive sampling with a population of up to 156 companies and a sample of 42 manufacturing company data listed on the Indonesia Stock Exchange during 2017-2019. The secondary data is in the form of annual financial reports of manufacturing companies obtained through the official website of the Indonesia Stock Exchange, the company's official website, and other sources. The data collection method is the method of literature study and documentation. The analysis techniques are the classical assumption test, descriptive statistical analysis, multiple linear regression analysis, analysis of the coefficient of determination, analysis of the correlation coefficient, and hypothesis testing. The results of this study show 1) partially tax planning has a significant effect on earnings management, 2) partially deferred tax expense has a significant effect on earnings management and 3) simultaneously tax planning and deferred tax expense have a significant effect on earnings management.

The Factors that Influence Earnings Management: Evidence on Basic Materials Sector

Earnings management is an action to modify accounting records so that there is intervention in the financial statements while complying with applicable accounting standards. This study aims to determine the relationship between earnings management with tax incentives, tax avoidance, and financial distress in basic materials sector companies listed on the Indonesia Stock Exchange for the period 2016 – 2021. This research can suggest the companies or investors regarding the factors that influence earnings management practices in a company so that it can be more efficient in making business decisions in order to maintain the stability of the company. The sample selection technique in this study used purposive sampling. The resulting samples were 13 companies and 78 observational data. The analysis technique used is panel data regression using Eviews 12 software. The results show that tax incentives, tax avoidance, and financial distress simultaneously affect earnings management. Partially tax incentives have a negative influence on earnings management, while tax avoidance and financial distress have a positive influence on earnings management.

PENGARUH LEVERAGE, PROFITABILITAS, DAN PERENCANAAN PAJAK TERHADAP MANAJEMEN LABA

The study aims of this research is to analyse the impact of leverage, profitability, and tax planning on earnings management. The data used in this study are secondary data derived from the financial statements of companies listed on the Indonesian Stock Exchange (BEI) for the period 2019 – 2021. The research sample used 50 companies that met the criteria of a total of 216 companies with purposive sampling methods for the sample collection of the research. Data analysis using panel data regression, this study measurement using Econometric Views 12 (EViews 12). The results of this study show that the variable leverage projected by the Debt-equity ratio (DER) has a significant negative impact on earnings management. Variable profitability projected with Return on assets (ROA) has a significant positive impact on earnings management. Tax planning variables proxied with the Tax Retention Rate (TRR) do not affect earnings management. For the company to be able to define positive policies that can maintain the sustainability of the business and can meet the expectations of shareholders in earnings management.

Tax incentives and earnings management: A study based on accelerated depreciation policy in China

This paper uses the accelerated depreciation policy for fixed assets implemented by Chinese tax authorities since 2014 to explore the relationship between tax incentives and earnings management. Results report the following: (1) The accelerated depreciation policy for fixed assets causes a significant increase in earnings management and the result persists after accounting for endogeneity problems; and (2) the accelerated depreciation policy for fixed assets has a more significant effect on firms with small pre-policy book-tax differences and low pre-policy investment growth. This paper supplements the research that tax policy affects earnings management behavior of firms.

Pengaruh Spesialisasi Auditor, Audit Tenure, Leverage dan Profitabilitas terhadap Manajemen laba pada Perusahaan Manufaktur yang terdaftar di Bursa Efek Indonesia

The purpose of testing this research is to find out whether Auditor Industry Specialization, Audit Tenure, Leverage and Profitability have an influence on the occurrence of Earnings Management in Food and Beverage sub-sector manufacturing companies listed on the Indonesia Stock Exchange during 2019 to 2021. Food and beverage sub-sector manufacturing companies listed on the Indonesia Stock Exchange which will be the focus of the population for this study and the data needed is obtained from their financial statements. Sampling was carried out using several criteria with the purposive sampling method for sample selection. Sample data obtained from 16 companies with a period of 2019 to 2021. SPSS version 26 is used for data analysis then continued with classical assumption testing then hypothesis testing with partial tests. This study found that auditor industry specialization, audit tenure, and leverage do not affect earnings management and profitability has a positive impact on earnings management.

The Influence of Financial Distress, Tax Planning and Good Corporate Governance (GCG) on Earnings Management with Internal Control as an Intervening Variable

Financial distress occurs due to the company's failure to manage finances. These continuous losses result in capital deficiencies and even worse conditions when the company's liabilities are much higher than the company's assets. The sample of this study was 126 BUMN companies selected using purposive samples. The results of the analysis and testing carried out can conclude that financial distress and good corporate governance affect internal control. At the same time, tax planning does not affect internal control. Then, financial distress, tax planning, and good corporate governance do not affect earnings management, while internal control affects earnings management. Furthermore, financial distress and good corporate governance affect earnings management through internal control, while tax planning does not affect earnings management through internal control.

Pengaruh Perencanaan Pajak, Beban Pajak Tangguhan, dan Ukuran Perusahaan Terhadap Manajemen Laba

The purpose of This study aims to identify and examine the effect of tax planning, deferred tax expense and firm size on earnings management practices. The sample in this study is the consumer goods and industrial sub-sector companies listed on the Indonesia Stock Exchange with an observation period of 2015 to 2019. The results of this study indicate that tax planning has no effect on earnings management, deferred tax expense affects earnings management and firm size affects earnings management.

Investigation of the mediating role of real earnings smoothing in the relationship between financial distress and the use of trade credit

Taking into account the premise of rational expectations and the necessity of allocative efficiency, financial resources are expected to flow in the direction that would create the most efficiency. Also, given the asymmetry of information and the ethical risk raised between the providers of financial information and its users, external users are expected to have the required and sufficient knowledge of the final product of the financial reporting process, i.e., audited financial statements, the quality of financial statements, and the possibility of biased reporting, and also to optimally use the information contained in it for their economic decisions. Financially distressed firms are naturally expected to lose the trust of suppliers, and suppliers are reluctant to grant trade credit to such firms. The statistical population of the present research consists of all the companies listed on the Tehran Stock Exchange that have submitted their financial statements during the period of 1390 to 1400 (2011 to 2021). The present research, therefore, can also be helpful for standard-setting institutions (auditing organizations) to develop standards concerning the conditions by considering the financial situation of companies such as financial distress as exceptional conditions that may distort the effective implementation of some accounting standards. They can also revise and make adjustments to the stricter accounting rules affecting earnings management, especially in situations where managers are under a lot of pressure.

Pengaruh Mekanisme Good Corporate Governance dan Profitabilitas Terhadap Praktik Manajemen Laba pada Perusahaan Perbankan Periode 2017-2021

The actions taken by PT Envy carried out earnings management for fraudulent financial statements and consolidated its subsidiary companies so that investors became wary of investing their shares, thus this research was conducted to determine the effect of good corporate governance mechanisms and profitability on earnings management practices. Good corporate governance in this study uses institutional ownership and managerial ownership.This study used a population of 43 from banking companies listed on the Indonesia Stock Exchange (IDX) in the 2017-2021 period with non-probability sampling, and a purposive sampling technique with certain criteria so as to get a sample that met the sample criteria of 8 companies. This type of research is quantitative, so that the collection of research data uses secondary data in the form of financial reports officially issued by the IDX www.idx.co.id. Earnings management is measured using discretionary accruals, institutional ownership is measured by KI, managerial ownership is measured by KM, and profitability is measured by ROA. The analytical method used is descriptive analysis test, classical assumption test, multiple linear regression and hypothesis testing. The results of this study indicate that institutional ownership and profitability have no effect on earnings management practices, while managerial ownership has an effect on earnings management practices. Simultaneously profitability, institutional ownership, and managerial ownership affect earnings management practices

Internal control, debt risk, CEO education and earnings management evidence from China

PurposeThis study aims to explore how earnings management techniques are affected by corporate financial debt risk (FDR), internal control (IC) effectiveness and CEO education.Design/methodology/approachThe study uses a sample from listed firms in China from 2010 to 2017, comprising different industries, including agriculture, forestry, livestock farming and fishing; mining; manufacturing; electric power, gas and water production and supply; construction; transport and storage; information technology; the real estate industry; social services; and communication and cultural. The regression analysis is used to test the hypotheses. The two-stage least squares technique is used to check for endogeneity issues.FindingsThe study finds that firms are less likely to manage real earnings when they have more robust IC and FDR. Likewise, companies with weak ICs are more likely to manipulate real earnings. Besides, the study finds an influence of CEO education on the relationship between IC, FDR and real earnings management (REM). These results can be applied to the sectors in the sample covered by the research, and the authors do not overlook the energy industry sector for the importance of its role in the economy.Research limitations/implicationsThere are some limitations for the researcher when performing any research, and this study is no exception. Researchers are urged to take these circumstances into consideration when generalizing or comparing the results because the methods used to calculate the measurement variables in each study may differ somewhat from those used in other research. In addition, expanding the current research design to incorporate additional nations may be an area of interest for future research and could aid in evaluating the effects of nation-specific elements (such as inflation, culture, legal systems and political considerations) on the usefulness of IC and decreasing FDR. Second, the current study focuses on the impact of IC and FDR on REM; this paper does not dissect the “black box” of IC and consider how each element affects earnings management. Future research may need to focus specifically on how effective IC would affect earnings management and precisely what IC mechanisms would discourage the management of earnings.Practical implicationsHelping companies listed in China to make decisions and improve investors’ vision of the results of real companies’ businesses, as well as helping management to avoid falling into debt risk and the consequent effects and manipulation of earnings.Originality/valueBy highlighting the significance of IC and debt risk in enhancing information quality in China, the results contribute to the body of work examining the relationship between IC, FDR and REM. In addition, this study uses a CEO’s education to moderate this link.

Pengaruh Struktur Kepemilikan, Masa Jabatan CEO, dan Jenis Kelamin CEO Terhadap Manajemen Laba

This study aims to determine the effect of family ownership, public ownership, CEO tenure, and CEO gender on the earnings management of manufacturing companies listed on the Indonesia Stock Exchange between 2019 and 2021. The samples include 243 data selected through purposive sampling method, and analyzed by multiple linear regression. The results of the study exhibit that CEO tenure has a negative effect on earnings management; family ownership, public ownership, and CEO gender have no effect on earnings management; and family ownership, public ownership, CEO tenure, and CEO gender simultaneously affect earnings management. The result of robustness test conforms with those of the initial hypothesis testing.

Internal Control Implementation and Earning Management: A Mediation Effect Testing

There must be clear evidence about whether internal control mediates earnings management in the relationship between financial distress and tax planning. This research analysed the direct effect of financial distress and tax planning on earnings management and the indirect effect of financial distress and tax planning on earnings management through internal control. A sample of 126 secondary observation data from 21 samples of SOCs companies and non-financial SOCs subsidiaries listed on the Indonesia Stock Exchange for the 2016-2021 period was used. The test results showed that financial distress had a direct impact on internal control and earnings management, while tax planning did not have a direct impact. The study's findings also do not indicate that internal control can mediate the relationship between financial distress and tax planning on earnings management. Further research is needed to add other variables that can, directly and indirectly, affect earnings management.

Net Profit Margin Sebagai Moderator Tax Planning dan Corporate Social Responsibility pada Manajemen Laba

The purpose of this study is to determine the effect of Tax Planning, Corporate Social Responsibility (CSR) and Net Profit Margin (NPM) as a moderating variable on Profit Management. This research was conducted on manufacturing companies listed on the Indonesia Stock Exchange. This type of research is quantitative research, the population in this study are consumer goods manufacturing companies listed on the Indonesia Stock Exchange from 2018 to 2020, with a sample of 33 companies. The type of data in this research is quantitative data. Technique analysis in this research uses multiple linear regression and Moderated Regression Analysis (MRA). The test results show that Tax Planning positively affects earnings management, while Corporate Social Responsibility has a negative effect on earnings management. The MRA test results show that NPM cannot be used as a moderating variable between tax planning and CSR on earnings management.Keywords: earnings management, corporate social responsibility net profit margin, tax planning

The Impact of Tax Planning, Financial Distress, And Audit Quality on Earnings Management

This study aims to determine the effect of financial distress, tax planning, and audit quality on earnings management in banking sector companies listed on the IDX in 2019-2021. This research uses quantitative methods. The data used is secondary data by looking at the annual reports of pharmaceutical companies listed on the Indonesia Stock Exchange (IDX) from 2019-2021. The sample determination method used was purposive sampling with 29 companies and 87 observational data. The study results show that tax planning, financial distress and audit quality simultaneously affect earnings management. Meanwhile, tax planning and audit quality have no effect on earnings management, only financial distress has an influence on earnings management.

Pengaruh Leverage Dan Kepemilikan Manajerial Terhadap Manajemen Laba Pada Perusahaan Manufaktur

The purpose of this study is to ascertain how managerial ownership and leverage affect earnings management. In this study, the purposive sampling method was used for sampling. The perception variable received a t count value of in accordance with the findings of the hypothesis test 0.785 < t table 1.655, and Sig 0.437 > 0.05. The competency variable obtained a t count value of 2.173 > t table 1.655, and Sig 0.012 < 0.05, so it can be concluded that managerial ownership variables have a significant impact on earnings management. As a result, It can be said that the leverage variable has little to no effect on managing earnings. It is possible to conclude that managerial ownership and leverage both significantly affect earnings management because the calculated f value is 33.488 with a significance of 0.000, which means that the significant value is less than the probability value, which is 0.05 or 0.000 0.05

Studi Literatur: Analisis Tentang Pengaruh Beban Pajak Terhadap Manajemen Laba

This study aims to explain the effect of the tax burden on earnings management. The framework built is the effect of tax burden and tax planning can affect earnings management incompanies. This research method uses a systematic literatur study method and the application of PoP (Publish or Perish). Keywords such as “earnings management”, “tax espense”, and “tax planning” are used in research to find articles related to research problems. The object of this research was obtained as many as 31 articles taking into account certain criteria, with the period from 3017 to 2022. The results of the research show that the tax burden for companies can reduce the amount of profits. Researchers also found that tax burden and tax planning can affect earnings management. This causes management to carry out earnings management through tax planning and tax burden on the financial statements.

Roles of board of directors and earnings management across SMEs life cycle: evidence from the UK

PurposeThis study aims to examine the role of the board of directors in affecting earnings management practices across small- and medium-sized enterprises (SMEs) life cycle.Design/methodology/approachData is collected from 280 SMEs listed on the London Stock Exchange during the period of 2009–2016. Fixed effects regression analysis is used to test the hypotheses.FindingsThis study shows that the impact of the board of directors' roles on earnings management practices varies depending on the SMEs life cycle stage. In the introduction, growth and decline stages of SMEs, the wealth creation role of the board is negatively significant with earnings management, while the wealth protection role of the board is positively significant in the growth and maturity phases. Results suggest that the board's responsibility to create wealth deters early-stage earnings management strategies, while protecting shareholder interests, in latter stages, leads to a decrease in earnings management.Practical implicationsThe findings suggest that corporate governance should be customized to the specific stage of the SMEs life cycle. Additionally, different life cycle stages may impose different requirements on corporate boards to shape the effectiveness of these mechanisms and constrain earnings management practices.Originality/valueTo the best of the authors’ knowledge, this study offers one of the first insights on the UK SMEs to understand how board functions and earnings management practices vary over SMEs life cycles. It will offer important information on the effect of board features on earnings management in SMEs in the UK and is anticipated to be of importance to policymakers, regulators, investors and practitioners.

The Effect of Gross Profit Margin, Intellectual Capital, Investment Opportunity Set on Firm Value with Earnings Management as an Intervening Variable

Firm value is indicated to be influenced by several factors such as gross profit margin, intellectual capital, investment opportunity set, and earnings management. This study aims to determine the effect of gross profit margin, intellectual capital, and investment opportunity set either directly or indirectly through earnings management on firm value. This study used a sample of food and beverage companies listed on the IDX for the period 2017-2021 totaling eighteen companies. The study used secondary data with time series and cross-section panel data. The sample selection was carried out by purposive sampling. The analysis technique used to test the hypothesis is path analysis. The quantitative approach was used in this study, with multiple linear regression analysis tools and using the SPSS 22 program. The results showed that partially gross profit margin affects earnings management. Intellectual capital affects earnings management. Investment opportunity set has no effect on earnings management. Gross profit margin affects firm value. Intellectual capital has no effect on firm value. Investment opportunity set affects firm value. Earnings management has no effect on firm value. Indirectly gross profit margin on firm value through earnings management the results have no effect. Indirectly intellectual capital on firm value through earnings management has no effect. Indirectly investment opportunity set on firm value through earnings management has no effect. This study provides information on factors that affect firm value and adds empirical evidence related to earnings management as an intervening variable.