Journal of Economics and Business

ISSN 2615-3726 (Online)

ISSN 2621-5667 (Print)

Published: 14 May 2019

Ownership Structure and Earnings Management in Indonesian Listed Banks

Arja Sadjiarto, Chaterine Cinthya Monica, Windasari Rizky Budiarti

Petra Christian University, Indonesia

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Pages: 261-272

Keywords: Ownership Structure, Earnings Management, Indonesian Listed Bank


We do the study whether the ownership structure has any effect on earnings management in Indonesian listed banks during 2010-2017. Ownership structure consists of managerial, institutional, family and government ownership. Earnings management is measured using Jones modification formula by identifying the value of discretionary accruals. Since the financial ratios used in this sector are different with the ratios for other sectors, then we use two specific ratios: capital adequacy ratio and non-performing loans, together with return on assets, leverage, and size. We take samples from banking companies on the Indonesia Stock Exchange for the period 2010-2017. The analysis used in this study is the multiple linear regression analysis. The finding is that the ownership structure has a significant effect on earnings management.


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