Profit Management Research Articles

Earnings Management in Indonesian Islamic Banking: Analyzing with Modified Jones Model

Company management follows earnings management to influence the earnings reported in the financial statements. This study aims to analyze whether there are earnings management activities in Islamic banking in Indonesia. The data taken for this study are the financial reports of Islamic Commercial Banks registered with the Financial Services Authority (OJK) for 2017-2021. Earnings management is measured by the discretionary accrual method using the Modified Jones Model. This research shows that the discretionary accruals (DAC) for Islamic Commercial Banks in 2017-2021 have a minimum result of -1.3614 and a maximum result of 0.2917. This shows that there have been earnings management activities in Islamic Commercial Banks in the last 5 years. To reduce earnings management, the Sharia Supervisory Board (DPS) is asked to be truly qualified in carrying out its duties so that profit management of Islamic bank financial reports can be reduced, readers of financial reports are not deceived, and investors are not harmed.

Diversifying the workplace in nonprofit organizations: Discourses and perspectives on ethnic diversity

AbstractThis study analyses the perspectives of nonprofit organizations (NPOs) on workplace diversity. Organizational diversity is a well‐established research topic in both profit management and organization studies, as well as in nonprofit scholarship. However, diversity is often discussed from a managerial point of view and, particularly in nonprofits, with little attention to workplace diversity. Using interview data from 25 Belgian NPOs, we explore how leaders in different types of nonprofits approach workplace diversity, discursively and in their organizational practices. Our analysis is centered around Maier and Meyer's typology on nonprofit governance and aims to understand how workplace diversity is perceived in organizations with a domestic, professionalist, grassroots, and civic discourse. We outline the main diversity perspectives underlying these governance discourses. Our study reveals that the way NPO leaders approach workplace diversity is shaped by their overall governance, resulting in differing discourses that go beyond business or social justice rationales. We conclude that there are various ways in which NPOs differentiate diversity, making it important not only to go beyond a managerial/business and social justice discourse, but also to unpack the different forms in which civic or grassroots discourses for example manifest themselves in the nonprofit sector.

Construction of Profit Management Model in Indonesia

Construction of Profit Management Model in Indonesia

The Impact of Intellectual Capital on Earnings Management in the Industrial Companies Listed on Amman Stock Exchange

This study aimed to find out the impact of intellectual capital on the management of profits of industrial companies in the Jordanian business environment, according to this basic objective, data were collected from 56 manufacturing companies listed on the Amman Stock Exchange (ASE) during the period from 2013 to 2019. The number of total views used in the analysis reached (359) views, during the entire study period. The study relied on the intellectual value-added coefficient to measure the impact of the independent variable, the intellectual capital with its three components (human capital, structural capital, and capital employed). Also, profit management was measured by the absolute value of estimated benefits by using the modified Jones model. In addition, the two control variables were measured: (the size of the company as measured by the natural logarithm of total assets, and the ratio of indebtedness through total debt to total assets). The study used the method of multiple regression analysis in the statistical program (E-views) to test the study hypotheses, and the results showed that earnings management was significantly influenced by intellectual capital. Specifically, it turned out that earnings management was negatively affected by the components of intellectual capital (human, structural and capital employed). Based on the results, the researchers recommend that companies pay more attention to employees by increasing bonuses and salaries, which improves the efficiency of their performance and increases profitability, as well as providing a rational investment environment of high quality, which in turn achieves high profits on the long term. Therefore, undesirable practices such as profit management and others disappear, and finally, working to educate users of financial statements about the risks of high indebtedness which may prompt management to take some management practices that may negatively reflect on their investment decisions.

A transformer-based deep learning framework to predict employee attrition.

In all areas of business, employee attrition has a detrimental impact on the accuracy of profit management. With modern advanced computing technology, it is possible to construct a model for predicting employee attrition to minimize business owners' costs. Despite the reality that these types of models have never been evaluated under real-world conditions, several implementations were developed and applied to the IBM HR Employee Attrition dataset to evaluate how these models may be incorporated into a decision support system and their effect on strategic decisions. In this study, a Transformer-based neural network was implemented and was characterized by contextual embeddings adapting to tubular data as a computational technique for determining employee turnover. Experimental outcomes showed that this model had significantly improved prediction efficiency compared to other state-of-the-art models. In addition, this study pointed out that deep learning, in general, and Transformer-based networks, in particular, are promising for dealing with tabular and unbalanced data.

Pengaruh Profitabilitas, Leverage, dan Ukuran Perusahaan terhadap Manajemen Laba pada Industri Manufaktur Rokok Terdaftar di Bursa Efek Indonesia


 
 Earnings Management is an intentional intervention by management in the profit determination process. The purpose of this study is to determine the effect of profitability, leverage and Firm size on earnings management. The population of this study consists of five manufacturing companies listed on the Indonesia Stock Exchange (IDX) between 2017-2021. Using sampel jenuh technique. The analysis tool is multiple linear regression, where previously the classical assumption test was carried out. Based on the test, it shows that Profitability has a positive and significant effect on Earnings Management, meaning that the higher the profits obtained by the company, the higher the Profit Management practices carried out by the managers. Leverage has no significant effect on Earnings Management, meaning that the greater the leverage a company has, the less likely the company is to practice earnings management, this is because a higher leverage ratio indicates an unfavorable financial situation for the company, making creditor supervision more stringent and financial risk higher. firm size has no significant effect on Earnings Management, meaning that the company is under strict supervision from the government, analysts and investors who run the company, causing managers to not dare to practice Earnings Management.
 Keywords: Profitability, Leverage and Company Size

ANALYSIS OF TRADE PERFORMANCE IN SERBIA BASED ON INTEGRATED METHODS OF MULTI-CRITERIA DECISION-MAKING

Research into the dynamics of trade performance positioning is a very challenging, continuously current, significant, and complex issue, especially in the conditions of integrated application of multi-criteria decision-making methods. Based on that, this paper investigates the dynamics of the performance positioning of trade in Serbia for the period 2013 - 2022 using different methods for determining the weighting coefficients of the criteria (AHP, LMAW, MEREC, DIBR), and the TOPSIS method. The goal of this, among other things, is to assess the impact of evaluation criteria on the dynamics of the performance positioning of trade in Serbia by using the TOPSIS method. In the specific case, therefore, the influence of the different evaluations of the criteria on the results of the ranking of the alternatives according to the TOPSIS method is negligible. In the trade of Serbia, the best results according to all used multi-criteria decision-making methods (AHP-TOPSIS, LMAW-TOPSIS, MEREC-TOPSIS, and DIBR-TOPSIS) were achieved in 2022, and the worst in 2014. They continuously improved from year to year in the observed period results of trade in Serbia. Effective management of key macro and micro factors contributed to this. Taken as a whole, the performance of Serbian trade continuously improved. The factors that influenced the improvement of the dynamics of the performance positioning of trade in Serbia are geopolitical situation, economy, inflation, interest rate, employment, the standard of living of the population, trade policy and strategy, foreign direct investments, new business models (multichannel sales - store and electronic, private label, sale of organic products, etc.), concept of sustainable development, energy crisis, management of human resources, asset, capital, sales and profit, digitization of the entire business, and others. The target dynamics of the performance positioning of trade in Serbia can be achieved by effective control of human resources, assets (investments), capital, sales, profits, labor productivity, and financial indebtedness.

Compiling the Influence Model of Management Accounting Information Quality Components on Tax Avoidance of Tehran Stock Exchange Companies

This research aims to formulate a suitable model of tax avoidance by using the effects of quality components of management accounting information (environmental uncertainty, financial reporting, corporate governance, and profit management).The research method is quantitative and descriptive-analytical.This study's statistical population includes companies admitted to the Tehran Bahadur Stock Exchange from 2011 to 2020. The statistical sample was selected using the systematic elimination method of 161 companies and 1610 company years. The results using panel data show that the quality components of management accounting information significantly impact tax avoidance. Profit management, financial reporting, and corporate governance are effective in reducing tax avoidance, and the component of environmental uncertainty is effective in increasing tax avoidance.

Analysis of the role of financial leverage, good corporate governance, and firm size on profit management

This study aims to determine the effect of Financial Leverage, Good Corporate Governance, and Firm Size on manufacturing companies listed on the Indonesia Stock Exchange for the 2020 period during the Covid-19 pandemic. This research technique uses purposive sampling so that 25 companies are obtained as research samples. The data source in this study is secondary data obtained from the sites www.idx.com and www.invesia.com in the form of annual reports (annual reports) of manufacturing companies in the consumer goods sector. The model used in this research is cross-section regression using data calculation application software, namely Eviews 10.0. The results of this study explain that financial leverage does not affect managers in carrying out earnings management practices. This is because the company does not need actions that will help the company in certain situations. After all, the company is in good condition. Good Corporate Governance (KPI) has no role in Profit Management (DA), meaning that during the COVID-19 pandemic, the good corporate governance implemented has not made managers practice earnings management. Company Size (Ln Asset) has a role in Earnings Management (DA); the larger the company will tend to reduce earnings management practices because large companies politically receive more attention from government agencies than small companies.

Analysis of Management Overconfidence on Earnings Management in Non-Financial Companies Listed on the IDX

The aim of this study is how to analyze management overconfidence in earnings management in IDX-registered non-financial companies from 2016 to 2020. Revenue management Non-financial companies BUMN on 'IDX for the period 2016-2020 can be concluded that 2016 is volatile to 2020. This means that non-financial public enterprises will have improvements in their performance. annual profit management to minimize the risk of occurrence. Managers' overconfidence in non-financial EIB companies BUMN During the period 2016-2020, there were 11 companies with excessive confidence in the performance of managers, namely INAF, KAEF, KRAS, ADHI, WIKA, WSKT, ANTM, TINS, SMBR, GIAA, TLKM, while the other 5 companies showing low confidence are PGAS, PTPP, PTBA, SMGR, JSMR.

Peran Koneksi Politik Dalam Memoderasi Pengaruh Karakteristik Dewan Direksi Terhadap Manajemen Laba Riil

This study aims to examine the characteristics of the board of directors on real earnings management with political connections as a moderator. The characteristics of the board of directors used in this research include managerial share ownership, educational background, tenure and gender of the board of directors. The research sample used is a manufacturing company listed on the IDX. SAMPLING using purposive sampling and obtained as many as 348 observations. Panel data is processed with the GLS model. The results of the study found that board of directors share ownership has a negative effect on real earnings management. The educational background of the board of directors in accounting, business or finance was found to have a negative effect on real earnings management. A board of directors with a long term of office was found to have no influence on real earnings management, while research results between the gender of the female board of directors were found to have a significant influence on real earnings management. Political connection was found to have no effect on board of directors share ownership, tenure on real earnings management. Political connections were found to have a negative influence between the educational background of the board of directors on real earnings management. The presence of political connections will strengthen the negative influence of the educational background of the board of directors on earnings management. Political connections were found to have a significant positive effect or to moderate the relationship between female board of directors gender and real profit management.
 Keywords: Real Earnings Management; Political Connection; Board of Directors Characteristic; Female Board of Directors

Factors Affecting Corporate Income Tax Payable: Solvability, Debt To Equity Ratio, and Profit Management

Previous or relevant research is fundamental in a study or scientific article. Previous or relevant research strengthens the theory and phenomenon of the relationship or influence between variables. This article reviews the factors influencing corporate income tax payable, namely Solvability, Debt to Equity Ratio, and Earnings Management, a literature study on tax accounting. This article aims to build a hypothesis on the influence between variables to be used in further research. The results of this literature review article are: 1) Solvability affects corporate income tax payable; 2) Debt to Equity Ratio affects the Income Tax Payable; and 3) Profit Management has a significant effect on Corporate Income Tax Payable

Financial Performance and Capital Structure on Firm Value with Commodity Prices as a Moderating Variable

The objective of this study is to examine the impact of liquidity, profitability, and capital structure on firm value, with commodity prices as a moderating variable. Causal research was employed, and 23 companies were selected as samples using purposive sampling at the IDX. Secondary data from these companies were used for analysis, and panel data analysis with e-views was applied. The findings reveal that liquidity and profitability do not significantly influence firm value, while capital structure has a significant effect on firm value. Commodity prices moderate the relationship between profitability and firm value, but not for liquidity and capital structure. The study's implications suggest that coal mining companiesˑneed to carefullyˑconsider decisions that affect theirˑvalue, particularly regarding investment funding through the management of capital structure, profitability, and liquidity. For investors, it is crucial to make informed decisions based on firm value and performance, considering financial reports and stock price developments at IDX

Information Asymmetry and Profitability on Profit Management in Companies in The Goods and Consumer Industry Sector

Information Asymmetry and Profitability on Profit Management in Companies in The Goods and Consumer Industry Sector

The Influence of Financial Performance and Profit Management on Company Value

The Influence of Financial Performance and Profit Management on Company Value

Factors influencing tax aggressiveness: profit management, leverage, and profitability

Previous or relevant research is fundamental in a research or scientific article. Previous or relevant research strengthens the theory and phenomena of the relationship or influence between variables. This article reviews the factors that influence tax aggressiveness, earnings management, leverage, and profitability, a literature study on tax accounting. This article aims to build a hypothesis on the influence between variables to be used in further research. The results of this literature review article are: 1) Profit Management influences Tax Aggressiveness; 2) Leverage affects Aggressiveness; and 3) Profitability affects Tax Aggressiveness.

Pengaruh Manajemen Laba Terhadap Nilai Perusahaan Dengan Corporate Governance Sebagai Variabel Moderasi (Studi Kasus Pada Perusahaan Goods Consumer yang Terdaftar di BEI)

This study aims to determine the effect of profit management on firm value with corporate governance as a moderating variable (a case study of consumer goods companies listed on the IDX for the 2018-2020 period). This study uses a quantitative method and an associative approach. The sample presentation technique uses purposive sampling with a data population of 61 companies which then becomes the sample of 14 companies for the 2018-2020 period. data collection techniques use documentation. Data analysis techniques using simple linear regression, moderation regression and hypothesis testing. The results of this study indicate that earnings management has an insignificant effect on firm value. Meanwhile, good corporate governance can to moderate the relationship between earnings management and firm value.

Profitability, Leverage, Sales Growth And Their Implications For Profit Management

This study looked at the impact of profitability, leverage, and sales growth on profit management practices in mining sub-sector companies on the Indonesia Stock Exchange in the 2018-2020 period. A total of 30 companies were selected by the purposive sampling method, and hypothesis testing was carried out by multiple regression analysis. Profit management is a strategy used by managers to improve the performance of a company. One of the factors that motivate profit management practices is the stability of profitability. The results showed that profitability, leverage, and sales growth had an effect on profit management practices in mining sub-sector companies for the 2018-2020 period.

The Influence of Institutional Ownership, Managerial Ownership, Independent Commissioners, Profitability, Leverage, and Size on Company Value with Earnings Management as Intervening (Empirical Study on Banking Bumn Listed on the Indonesian Stock Exchange 2016-2021)

This study aims to examine the effect of GCG mechanisms on firm value with earnings management as an intervening variable with empirical studies. The research approach is quantitative. Locus of research on banking SOEs listed on the Indonesia Stock Exchange in 2016-2021. Data collection techniques are through surveys using secondary data. The data analysis technique uses multiple linear regression with the help of Eviews 9.0 software. The results of the research show that Institutional Ownership, Managerial Ownership, and Independent Commissioners have on ROA has a negative and significant effect on DER, Total Assets partially have a positive and significant effect on Earnings Management. Institutional Ownership, Managerial Ownership, Independent Commissioner, ROA, Total Assets simultaneously have a positive effect on Profit Management. Institutional Ownership has a positive and significant effect on Firm Value. Managerial Ownership, and Independent Commissioners, partially have a negative and significant effect on Company Value. Total Assets, ROA, DER, Earnings Management partially have a negative and significant effect on Firm Value. Institutional Ownership, Managerial Ownership, Independent Commissioners, DER, Total Assets, and Profit Management simultaneously have a positive effect on Firm Value. Earnings Management does not mediate the influence of ownership, independent commissioners, ROA, DER, Size on Company Value.

Effect of operating cash flow and profit management on company's profitability and growth

This study aims to determine the effect of operating cash flow on profitability and the effect of earnings management on corporate growth. Operating cash flow is measured by the growth of operating cash flow, while profitability is measured by return on assets (ROA). Earnings management is measured through discretionary accruals, and growth is measured through asset growth. Research conducted at PT. Baturaja Multi Usaha with a monthly research period from 2019-2021. The research uses quantitative methods, simple linear regression data analysis techniques, and hypothesis testing. The results showed that operating cash flow had a positive and significant effect on profitability (ROA), while earnings management significantly affected company growth.