Ownership Structure and Earnings Management in Indonesian Listed Banks
top of page
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute
Asian Institute of Research, Journal Publication, Journal Academics, Education Journal, Asian Institute

Economics and Business

Quarterly Reviews

ISSN 2775-9237 (Online)

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, managemet journal
crossref
doi
open access

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

asian institute research, jeb, journal of economics and business, economics journal, accunting journal, business journal, management journal

Download Full-Text Pdf

doi

10.31014/aior.1992.02.02.85

Pages: 261-272

Keywords: Ownership Structure, Earnings Management, Indonesian Listed Bank

Abstract

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.

References

  1. Abdillah, Abie. (2014). Pengaruh Kualitas Audit, Komite Audit dan Corporate Governance terhadap Manajemen Laba (studi empiris pada perusahaan perbankan yang terdaftar di BEI pada tahun 2009-2012). (Published mini thesis, Fakultas Pendidikan Ekonomi dan Bisnis Universitas Pendidikan Indonesia). Retrieved from http://repository.upi.edu/11283/

  2. Agusti, Restu & Tyas, Pramesti. (2009). Pengaruh Asimetri Informasi, Ukuran Perusahaan, Kepemilikan Manajerial Terhadap Manajemen Laba. Jurnal Ekonomi, Vol.17 No.1.

  3. Agustia, Dian. (2013). Pengaruh Faktor Good Corporate Governance, Free Cash Flow, dan Leverage Terhadap Manajemen Laba. Jurnal Akuntansi dan Keuangan, Vol.15 No.1, 27-42. doi:10.9744/jak.15.1.27-42

  4. Aji, Bimo Bayu. (2012). Pengarug Corporate Governance Terhadap Manajemen Laba Pada Perusahaan Manufaktur di Bursa Efek Indonesia. (Published mini thesis, Universitas Diponegoro,Semarang.

  5. Alves, Sandra. (2012). Ownership Structure and Earnings Management: Evidence from Portugal. Australasian Accounting, Business and Finance Journal, Vol.6(1), 57-74.

  6. Arifin, Lavenia & Nicken, Destriana. (2016). Pengaruh Firm Size, Corporate Governance, dan Karakteristik Perusahaan Terhadap Manajemen Laba. Jurnal Bisnis dan Akuntansi, Vol.18 No.1, 84-93.

  7. Arun, T.G. & J.D., Turner. (2004). Corporate Governance of Banks in Developing Economies: concepts and issues. Corporate Governance An International Review, 12(3), 371-377. doi: https://doi.org/10.1111/j.1467-8683.2004.00378.x

  8. Ben-nasr, H., Boubakri, N., & Cosset, J. (2015). Earnings quality in privatized firms : The role of state and foreign owners. Journal of Accounting and Public Policy, 34(4), 392–416. https://doi.org/10.1016/j.jaccpubpol.2014.12.003

  9. Boediono, Gideon SB. (2005). Kualitas Laba: Studi Pengaruh Mekanisme Corporate Governance dan Dampak Manajemen Laba dengan Menggunakan Analisis Jalur. Simposium Nasional Akuntansi, 8. Solo.

  10. Chi-Yih Yang, Hung-Neng Lai, Boon Leing Tan. (2008). Managerial Ownership Structure and Earnings Management. Journal of Financial Reporting and Accounting, 6(1), 35-53. doi:https://doi.org/10.1108/19852510880000634

  11. Cornett, Marcia Millon, Alan, J. Marcus, & Hassan, Tehranian. (2006). Corporate governance and pay-for-performance: The impact of earnings management. Journal of Financial Economics, 87, 357-373. doi:10.1016/j.jfineco.2007.03.003

  12. Darwis, Herman. (2009). Corporate Governance Terhadap Kinerja Perusahaan. Journal of Finance and Banking, 13 No.3.

  13. Dewi,  Diastiti  Okkarisma. (2010).  Pengaruh Jenis  Usaha,  Ukuran  Perusahaan  dan Financial Leverage Terhadap Tindakan Perataan Laba pada Perusahaan  yang  Terdaftar  di  Bursa Efek   Indonesia   (Studi   Empiris   di BEI), (Published mini thesis Universitas Diponegoro, Semarang).

  14. Dey, Aiyesha. (2008). Corporate Governance and Agency Conflicts. Journal of Accounting Research, Vol.46(5). https://doi.org/10.1111/j.1475-679X.2008.00301.x

  15. Dhaliwal, Dan S., Gerald L., Salamon, & E. Dan, Smith. (1982). The Effect of Owner Versus Management Control on the Choice of Accounting Methods. Journal of Accounting and Economics, 4(1), 41-53. doi:https://doi.org/10.1016/0165-4101(82)90005-2

  16. Effendi, Sofyan & Daljono. (2013). Pengaruh Corporate Governance dan Kualitas Auditor Terhadap Manajemen Laba. Diponegoro Journal of Accounting, 2 No.3.

  17. Farooque, Omar Al, Tony, Van Zijl, & Keitha, Dunstan & AKM, Waresul Karim. (2007). Corporate Governance in Bangladesh: Link between Ownership and Financial Performance. Journal Compiltaion, 15 No.6.

  18. Fauziyah, Nuriyatun. (2017). Pengaruh Good Corporate Governance dan Leverage Aktivitas Riil pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2010-2012. (Published mini thesis Universitas Negeri Yogyakarta).

  19. FCGI. (2011). Retrieved from Forum for Corporate Governance in Indonesia: http://www.fegi.or.id/corporate-governance/about-good-corporate-governance.html

  20. Ichsan. (2013). Teori Keagenan (Agency Theory). Retrieved from (https://bungrandhy.wordpress.com/2013/01/12/teori-keagenan-agency-theory/)

  21. Irma, Yeni, Noorina, Hartati & Ali, Muktiyanto. (2015). The effect of good corporate governance mechanism to firm’s performance (empirical study of manufacturing firms listed on IDX).  Journal of Applied Business and Economic Research (IJABER) 13(7), 4849-4866.

  22. Iskander, Magdi R., & Naderch, Chamlou. (2000). Corporate Governance: A Framework for Implementation. (Public Disclosure The International Bank for Reconstruction and Development, The World Bank Group).

  23. Jensen, C., & Meckling, H. (1976). Theory of The Firm : Managerial Behavior, Agency Costs, and Ownership Structure. Journal of Financial Economics 3, 305-360.

  24. Larastomo, J., H.D. Perdana, H. Triatmoko, & E.A. Sudaryono. (2016). Pengaruh tata kelola perusahaan dan penghindaran pajak terhadap manajemen laba pada perusahaan manufaktur di Indonesia. Jurnal Bisnis dan Manajemen 6(1), 63 – 74

  25. Mehran, H., & Mollineaux, L. (2012). Corporate Governance of Financial Institutions. (Published by Federal Reserve Bank of New York Staff Reports) .

  26. Morck, Randall, Andrei, Shleifer, & Robert W, Vishny (1988). Management ownership and market valuation: An empirical analysis. Journal of Financial Economics 20. 293-315

  27. Ningsaptiti, Restie. (2010). Analisis Pengaruh Ukuran Perusahaan dan Mekanisme Corporate Governance terhadap Manajemen Laba. (Published mini thesis Universitas Diponegoro, Semarang).

  28. Pradipta, Arya. (2011). Analisa Pengaruh dan Mekanisme Corporate Governance Terhadap Manajemen Laba. Jurnal Bisnis dan Akuntansi, 13 No.2, 93-106.

  29. Rezai, F & Roshani, M. (2012). Efficient or Opportunistic Earnings Management with Rewards to the Role of Firm Size and Corporate Governance Practices. Interdisciplinary Journal of Contemporary Research in Business, 3, 1312-1322.

  30. Riyanto. (2005). Efisiensi Pasar Modal di Bursa Efek Jakarta. Jurnal Ekonomi STEI No.1/Th.XI/19/Januari-Maret, 24-36.

  31. Sefiana, Eka. (2010). Pengaruh Penerapan Corporate Governance Terhadap Manajemen Laba pada Perusahaan Perbankan yang telah Go Public di BEI. Jurnal Ekonomi Bisnis & Akuntansi Ventera Vol.12 No.3. Desember. 221-222.

  32. Sirat, Hadi. (2012). Corporate Governance Practices, Share Ownership Structure, and Size on Earning Management. Journal of Economics, Business, and Accountancy Ventura 15(1), 145 – 156

  33. Setiawati, Koosrini. (2010). Pengaruh Rasio CAMEL Terhadap Praktik Manajemen Laba di Bank Umum Syariah.(Published mini thesis Universitas Diponegoro, Semarang).

  34. Stockmans, A., Lybaert, N., & Voordeckers, W. (2013). The Conditional Nature of Board Characteristics in Constraining Earnings Management in Private Family Firms. Journal of Family Business Strategy, 4(2), 84–92. https://doi.org/10.1016/j.jfbs.2013.01.001

  35. Subhan. (2015). Pengaruh Good Corporate Governance dan Leverage Terhadap Manajemen Laba pada Perusahaan Manufaktur di Bursa Efek Indonesia. (Published mini thesis Sekolah Tinggi Ilmu Ekonomi Perbanas, Surabaya).

  36. Sun, L., & Rath, S. (2009). An Empirical Analysis of Earnings Management in Australia. International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering 3(7), 1682–1698.

  37. Suryani, Indra Dewi. (2010). Pengaruh Mekanisme Corporate Governance Dan Ukuran Perusahaan Terhadap Manajemen Laba Pada Perusahaan Manufaktur Yang Terdaftar Di BEI. (Published mini thesis Universitas Diponegoro, Semarang).                                                         

  38. Ujiyantho dan Pramuka. (2007). Mekanisme Corporate Governance, Manajemen Laba dan Kinerja Keuangan (studi pada perusahaan go public sektor manufaktur). Jurnal Simposium Nasional Akuntansi X.

  39. Veronica, Dr. Sylvia N.P. Siregar. Dan Utama, Dr. Siddharta. (2005). Pengaruh Struktur Kepemilikan, Ukuran Perusahaan, dan Praktek Corporate Governance Terhadap Pengelolaan Laba (Earnings Management). Simposium Nasional Akuntansi. Solo.

  40. Villalonga, B., Amit, R.,. (2012). How do Family Ownership, Control, and Management Affect Firm Value ?. Journal of Financial Economics 80. 385–417. https://doi.org/10.1016/j.jfineco.2004.12.005

  41. Walker, M. (2013). How Far Can We Trust Earnings Numbers ? What Research Tells Us About Earnings Management. Journal Accounting and Business Research Vol.43 No.4, 445–481. https://doi.org/10.1080/00014788.2013.785823

  42. Warfield et al. (1995). Managerial Ownership, Accounting Choices, and Informativeness of Earnings. Journal of Accounting and Economics Vol.20(1), 61-91. https://doi.org/10.1016/0165-4101(94)00393-J

  43. Wedari. (2004). Analisis Pengaruh Proporsi Dewan Komisaris dan Keberadaan Komite Audit Terhadap Aktivitas Manajemen Laba. Simposium Nasional Akuntansi 7. Denpasar.

bottom of page