The Role of Firm Size, Leverage, and Governance in Earnings Management: A Comparative Study of IDX and BRVM
Downloads
This research aimed to comparatively analyze the influence of key corporate governance mechanisms on earnings management in the consumer goods industry across two distinct markets: the Bourse Régionale des Valeurs Mobilières (BRVM) and the Indonesia Stock Exchange (IDX) during the 2019-2022 period. The study employed simple linear regression to analyze the data. The results indicate a notable divergence in the impact of these governance variables between the two exchanges. For IDX-listed companies, a statistically significant relationship was observed exclusively between leverage and earnings management. The remaining variables, company size, independent board of commissioners, audit quality, and managerial ownership, did not exhibit a significant influence. Conversely, the analysis of BRVM-listed firms showed that company size and managerial ownership were significant predictors of earnings management, whereas leverage, the independent board of commissioners, and audit quality were not.
Keywords: Earnings Management, Company Size, Leverage, Corporate Governance Mechanisms
ABSTRAK
Penelitian ini bertujuan membandingkan dampak mekanisme tata kelola, termasuk Ukuran Perusahaan, Leverage, Dewan Komisaris Independen, Kualitas Audit, dan Kepemilikan Manajemen, terhadap Manajemen Laba di Industri Barang Konsumen yang terdaftar di BRVM dan IDX dari tahun 2019-2022. Analisis regresi linear sederhana digunakan sebagai Teknik analisis data penelitian ini. Hasil penelitian menunjukkan perbedaan yang signifikan antara BRVM dan IDX terkait pengaruh mekanisme tata kelola korporat terhadap Manajemen Laba. Di IDX, Leverage secara signifikan mempengaruhi Manajemen Laba. Selanjutnya, Ukuran Perusahaan, Dewan Komisaris Independen, Kualitas Audit, dan Kepemilikan Manajerial tidak signifikan. Selanjutnya, pada perusahaan yang terdaftar pada BRVM , Ukuran Perusahaan dan Kepemilikan Manajerial secara individual menunjukkan pengaruh signifikan terhadap Manajemen Laba. Namun, Leverage, Dewan Komisaris Independen, dan Kualitas Audit tidak menunjukkan pengaruh signifikan terhadap Manajemen Laba.
Kata Kunci: Manajemen Laba, Ukuran Perusahaan, Leverage, Mekanisme Tata Kelola Perusahaan
Downloads
Ali, U., Noor, M., Khurshid, M. K., & Mahmood, A. (2015). Impact of Firm Size on Earnings Management: A Study of Textile Sector of Pakistan. SSRN Electronic Journal, 7(28), 47–56. https://doi.org/10.2139/ssrn.2698317
DeAngelo, L. E. (1981). Auditor size and audit fees. Journal of Accounting and Economics, 3(3), 183–199.
Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1996). Causes and consequences of earnings manipulation: An analysis of firms subject to enforcement actions by the SEC. Contemporary Accounting Research, 13(1), 1–36. https://doi.org/10.1111/j.1911-3846.1996.tb00489.x
DeFond, M. L., & Jiambalvo, J. (1994). Debt covenant violation and manipulation of accruals. Journal of Accounting and Economics, 17(1), 145–176. https://doi.org/https://doi.org/10.1016/0165-4101(94)90008-6
DeFond, M., & Zhang, J. (2014). A review of archival auditing research. Journal of Accounting and Economics, 58(2–3), 275–326.
Djojo, V. M., & Astuti, C. D. (2023). The Effect of Political Connection, Independent Commissioners And Sales Growth On Earning Management with Company Size as A Moderating Variable. Devotion: Journal of Research and Community Service, 4(3), 749–760.
Dunakhir, S. (2016). Atribut Kualitas Audit Di Indonesia: Perspektif Penyaji Dan Pengguna Laporan Keuangan. Journal of Accounting and Finance" Accounthink", 1(02), 203–217.
Healy, P. M., & Wahlen, J. M. (2005). A Review of the Earnings Management Literature and its Implications for Standard Setting. SSRN Electronic Journal, November. https://doi.org/10.2139/ssrn.156445
Hope, O. K., & Vyas, D. (2017). Private company finance and financial reporting. Accounting and Business Research, 47(5), 506–537. https://doi.org/10.1080/00014788.2017.1303963
Jensen, M. C., & Meckling, W. H. (1994). Agency Theory. Journal of Applied Corporate Finance, Summer.
Johl, S., Jubb, C. A., & Houghton, K. A. (2003). Audit Quality : Earnings Management in the Context of the 1997 Asian Crisis. Illinois International Summer Conference 2003 in Göttingen, January.
Joo, J. H., & Chamberlain, S. L. (2017). The effects of governance on classification shifting and compensation shielding. Contemporary Accounting Research, 34(4), 1779–1881.
Katherine Schipper. (1989). Commentary on Earnings Management. In Accounting Horizons (Vol. 3, Issue 4,5, pp. 91–102).
Kristilestari, C. C., & Andesto, R. (2023). Influence of the Independence of the Board of Commissioners, the Competency of the Committee Audit, and Audit Quality on Earnings Management and its Implications on Firm Value (Empirical Study of Non-Financial State-Owned Enterprises that go Public in the 2019-2021 Period). Dinasti International Journal of Education Management & Social Science, 4(4).
Monika, P. (2017). The Effect Of Manajerial Ownership, Institutional Ownership, The Number Of Independent Board Of Commissioners, And Audit Committe On Earnings Management Practices (Empirical Study On Manufacturing Company Listed In The Indonesia Stock Exchange In 2013–2015). Universitas Brawijaya.
Nalarreason, K. M., Sutrisno, T., & Mardiati, E. (2019). Impact of leverage and firm size on earnings management in Indonesia. International Journal of Multicultural and Multireligious Understanding, 6(1), 19–24.
Overview and History of IDX. (n.d.). https://www.idx.co.id/en/about-idx/overview-and-history-of-idx
Patrick, E. A., Paulinus, E. C., & Nympha, A. N. (2015). The Influence of Corporate Governance on Earnings Management Practices : A Study of Some Selected Quoted Companies in Nigeria. 1(5), 482–493.
Prabowo, M., & Simpson, J. (2011). Independent directors and firm performance in family controlled firms: Evidence from Indonesia. Asian-Pacific Economic Literature, 25(1), 121–132. https://doi.org/10.1111/j.1467-8411.2011.01276.x
Prasetyo, M. P., & Suhendah, R. (2023). The Effect of Profitability, Leverage, and Managerial Ownership on Earnings Management. International Journal of Application on Economics and Business, 1(1), 98–105.
Putro, H., & Priantinah, D. (2017). Pengaruh umur perusahaan, ukuran perusahaan, persentase saham yang ditawarkan, earning per share, dan kondisi pasar terhadap underpricing saham pada saat Initial Public Offering (IPO) di Bursa Efek Indonesia (BEI) tahun 2012-2015. Jurnal Profita, 3, 1–16.
Se, A. G., & Mak, M. (2020). Effect of Firm Size and Leverage on Earning Management. Journal of Industrial Engineering & Management Research, 1(3), 218–225.
Setiawan, D., Taib, F. M., Phua, L. K., & Chee, H. K. (2019). IFRS and Earnings Management in Finland. International Journal of Business and Society, 20(1), 37–59.
Shleifer, A., & Vishny, R. W. (1986). Large shareholders and corporate control. Journal of political economy. Journal of Political Economy, 94(3), 461–488.
Siregar, S. V., & Utama, S. (2008). Type of earnings management and the effect of ownership structure, firm size, and corporate-governance practices: Evidence from Indonesia. International Journal of Accounting, 43(1), 1–27. https://doi.org/10.1016/j.intacc.2008.01.001
Subramanyam, K. R. (2014). Financial Statement Analysis. In Mc Graw Hill (Vol. 11). http://ir.obihiro.ac.jp/dspace/handle/10322/3933
Sukirno, S., putritama, A., Dewanti, P. W., & Ningsih, A. P. (2017). Pengaruh komite audit, kepemilikan institusional, dan persentase saham publik terhadap aktivitas manajemen laba. Nominal: Barometer Riset Akuntansi Dan Manajemen, 6(1). https://journal.uny.ac.id/index.php/nominal/article/view/14329
Veronica, A. (2015). The Influence of Leverage and Its Size on the Earnings Management. Research Journal of Finance and Accounting, 6(8), 159–167.
Wiyadi, Trisnawati, R., Sasongko, N., & Fauzi, I. (2015). The Effect of Information Asymmetry, Firm Size, Leverage, Profitability and Employee Stock Ownership on Earnings Management with Accrual Model. International Journal of Business, Economics and Law, 8(2), 21–30. https://www.ijbel.com/wp-content/uploads/2016/01/Bus-10.pdf
Zamri, N., Rahman, R. A., & Isa, N. S. M. (2013). The Impact of Leverage on Real Earnings Management. Procedia Economics and Finance, 7(Icebr), 86–95. https://doi.org/10.1016/s2212-5671(13)00222-0
Copyright (c) 2025 Mohamed Cisse
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Nominal Barometer Riset Akuntansi dan Manajemen allows readers to read, download, copy, distribute, print, search, or link to its articles' full texts and allows readers to use them for any other lawful purpose. The journal allows the author(s) to hold the copyright without restrictions. Finally, the journal allows the author(s) to retain publishing rights without restrictions
- Authors are allowed to archive their submitted article in an open access repository
- Authors are allowed to archive the final published article in an open access repository with an acknowledgment of its initial publication in this journal
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 Generic License.
Terjemahan.png)
