Earning management including corporate accounting policies or intentional manipulation?

Authors

  • Ahmad Aulia Dalimunthe
  • Nadilla Vidya Putri
  • Iskandar Muda

DOI:

https://doi.org/10.34117/bjdv10n2-046

Keywords:

earnings management, financial accounting standard, fraud

Abstract

This literature study examines and clarifies issues associated with the earnings management perspective. The research method applied to this study is qualitative, utilizing literature studies for obtaining the data. The findings of this study demonstrate that earnings management is not a deception.  Deception is an unlawful activity that is in violation of legal statutes. Meanwhile, earnings management is a practice of adjusting profits that is considered legal as it adheres to accounting standards and company law. The outcomes of this study add to the existing body of research in the field of financial accounting literature, particularly in the area of accounting theory.

References

Yulius, Unggul Purwohedi, & Ari Warokka. (2017). Manajemen Laba: Bagaimana Dampaknya Terhadap IPO Underpricing? Jurnal Keuangan Dan Perbankan, 21(2). https://doi.org/10.26905/jkdp.v21i2.573

Arya, A., Clover, J. C., & Sunder, S. (2002). Are Unmanaged Earnings Always Better for Shareholders? http://ssrn.com/abstract_id=322260

Assih, P., & Gudono, G. (2000). Hubungan tindakan perataan laba dengan reaksi pasar atas pengumuman informasi laba perusahaan yang terdaftar di Bursa Effek Jakarta. The Indonesian Journal of Accounting Research, 3(1).

Azlina. (2010). Analisis Faktor Yang Mempengaruhi Manajemen Laba (Studi Pada Perusahaan yang Terdaftar di BEI).

Chang, W., Chen, M.-L., & Chiao, C.-Y. (2012). Does Immateriality Matter? Evidence from Accountants Concerning the Acceptability of Questionable Accounting Practices. Modern Economy, 03(02), 223–228. https://doi.org/10.4236/me.2012.32031

Dempster, G. M., & Oliver, N. T. (2019). Financial Market Pricing of Earnings Quality: Evidence from a Multi-Factor Return Model. Open Journal of Business and Management, 07(01), 312–329. https://doi.org/10.4236/ojbm.2019.71021

Insyaroh, & Widiatmoko. (2022). Pengaruh GCG Terhadap Manajemen Laba dan Dampaknya Terhadap Nilai Perusahaan. 8, 33–51.

Healy, P. M. (1985). The Effect of Bonus Schemes on Accounting Decisions. In Journal of Accounting and Economics (Vol. 7).

Hrp, A. I. (2017). The effect of leverage and financial distress on earnings management with good corporate governance as the moderating variable. Academic Journal of Economic Studies. 3(4), December 2017, pp. 86–95

Jensen, M. C., & Meckling, W. H. (1976). Theory Of The Firm: Managerial Behavior, Agency Costs and Ownership Structure. In Journal of Financial Economics (Vol. 3). Q North-Holland Publishing Company.

Lim, & Haryani. (2017). Perbedaan Manajemen Laba Berdasarkan Managerial Tenure.

Magrath, & Weld. (2002). Abusive Earnings Management and Early Warnings Signs. https://www.researchgate.net/publication/261357290

Muda, I; M. Weldi; Siregar, H.S, & Indra, N. 2018. The Analysis of Effects of Good Corporate Governance on Earnings Management in Indonesia with Panel Data Approach. Iranian Economic Review. 22(2). 657-669.

Pramono, C., Program, D., Fakultas, S. M., & Sains, S. (2020). Pengaruh Good Corporate Governance Terhadap Manajemen Laba Perusahaan Manufaktur Yang Terdaftar Dalam Pertukaran Efek Indonesia (BEI). 13(1).

Rankin, M., Ferlauto, K., Stanton, P., McGowan, S., & Tilling, M. (2012). Contemporary Issues in Accounting. John Wiley & Sons Australia, Limited. https://books.google.co.id/books?id=Ww_iygAACAAJ

Pajriyansyah, & Firmansyah. (2017). Pengaruh Leverage, Kompenasasi Rugi Fiskal dan Manajemen Laba Terhadap Penghindaran Pajak. 2.

Watts, & Zimmerman. (1986). The Accounting Review (Vol. 65).

Scott, W. R. (1997). Financial Accounting Theory Seventh Edition. www.pearsoncanada.ca.

Syarif, F., Qorib, A., Siregar, S., (2021). Factors Affecting Earnings Management Islamic Banking Companies at The Indonesia Stock Exchange Publication Year 2013-2019. JIA (Jurnal Ilmiah Akuntansi), 6(2), 491-515. DOI. 10.23887/jia.v6i2.36717

Spohr, J. (2005). Essays on earnings management. Swedish School of Economics and Business Administration.

Syanthi. (2013). Pengaruh Manajemen Laba Terhadap Perencanaan Pajak dan Persistensi Laba Pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia.

Wahyudiono, & Andriansyah. (2014). Mudah Membaca Laporan Keuangan (1st ed., Vol. 10). Jakarta Raih Asa Sukses .

Downloads

Published

2024-02-21

How to Cite

Dalimunthe, A. A., Putri, N. V., & Muda, I. (2024). Earning management including corporate accounting policies or intentional manipulation?. Brazilian Journal of Development, 10(2), e67396. https://doi.org/10.34117/bjdv10n2-046

Issue

Section

Original Papers