Manajemen Laba dan Perilaku Investasi: Apakah Framing Effect Diperhitungkan?
Abstract
This study aims to obtain empirical evidence on the effect of earnings management on company's investment decision making, as well as to see indications of the framing effect caused by earnings management on the company's investment behavior. The sample of this study includes all manufacturing companies listed on the stock exchanges of countries in Southeast Asian region with an observation period from 2009 to 2019. The results indicate a positive and significant effect of earnings management on management investment decisions. Meanwhile, the framing effect is believed to arise as a result of earnings management practices and also influences managers in viewing further as a consideration for making company investment decisions.
Keywords: Earnings Management; Investment Decision; Framing Effect.
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References
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Sumiyana, S. (2020). Different characteristics of the aggregate of accounting earnings between developed and developing countries: Evidence for predicting future GDP. Journal of International Studies, 13(1), 58–80. https://doi.org/10.14254/2071-8330.2020/13-1/4
Sumiyana, S., Atmini, S., & Sugiri, S. (2019). Predictive power of aggregate corporate earnings and their components for future GDP growths: An international comparison. Economics & Sociology, 12(1), 125–142. https://doi.org/10.14254/2071-789X.2019/12-1/7
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Wu, Y. C., Wei Kiong Ting, I., Lu, W. M., Nourani, M., & Kweh, Q. L. (2016). The impact of earnings management on the performance of ASEAN banks. Economic Modelling, 53, 156–165. https://doi.org/10.1016/j.econmod.2015.11.023
Acar, G., & Yilmaz, I. (2020). The impact of discretionary accruals on corporate investment decisions: Evidence from GCC countries. Academic Journal of Interdisciplinary Studies, 9(6), 193–205. https://doi.org/10.36941/AJIS-2020-0124
Agrawal, K., & Chatterjee, C. (2015). Earnings Management and Financial Distress: Evidence from India. Global Business Review, 16, 140–154. https://doi.org/10.1177/0972150915601928
Agyei-Mensah, B. K. (2021). The impact of board characteristics on corporate investment decisions: An empirical study. Corporate Governance (Bingley). https://doi.org/10.1108/CG-04-2020-0125
Bar-Gill, O., & Bebchuk, L. A. (2005). Misreporting Corporate Performance. SSRN Electronic Journal, January. https://doi.org/10.2139/ssrn.354141
Bateman, T. S., & Zeithaml, C. P. (1989). The psychological context of strategic decisions: A model and convergent experimental findings. Strategic Management Journal, 10(1), 59–74. https://doi.org/10.1002/smj.4250100106
Bazerman, M. H., & Moore, D. A. (2013). Judgmental in Managerail Decesion Making.
Biddle, G. C., & Hilary, G. (2006). Accounting quality and firm-level capital investment. Accounting Review, 81(5), 963–982. https://doi.org/10.2308/accr.2006.81.5.963
Biddle, G. C., Hilary, G., & Verdi, R. S. (2009). How does financial reporting quality relate to investment efficiency? Journal of Accounting and Economics, 48(2–3), 112–131. https://doi.org/10.1016/j.jacceco.2009.09.001
Bushman, R. M., & Smith, A. J. (2001). <1-s2.0-S0165410101000271-main.pdf> (Vol. 32).
Chen, F., Hope, O. K., Li, Q., & Wang, X. (2011). Financial reporting quality and investment efficiency of private firms in emerging markets. Accounting Review, 86(4), 1255–1288. https://doi.org/10.2308/accr-10040
Choi, J., Kim, J., Kim, F., & Zang, Y. (2010). Institutional Knowledge at Singapore Management University Audit Office Size , Audit Quality and Audit Pricing Audit Office Size , Audit Quality and Audit Pricing. A Journal of Practice & Theory, 29(1), 1–40.
Cutillas Gomariz, M. F., & Sánchez Ballesta, J. P. (2014). Financial reporting quality, debt maturity and investment efficiency. Journal of Banking and Finance, 40(1), 494–506. https://doi.org/10.1016/j.jbankfin.2013.07.013
Dechow, P. M. (1994). Accounting earnings and cash flows as measures of firm performance the role of accounting accruals. Journal of Accounting and E, 18(1), 3–42. https://doi.org/10.1016/0165-4101(94)90016-7
Elaoud, A., & Jarboui, A. (2017). Auditor specialization, accounting information quality and investment efficiency. Research in International Business and Finance, 42(June), 616–629. https://doi.org/10.1016/j.ribaf.2017.07.006
Healy, P. M., & Palepu, K. G. (2001). Information asymmetry, corporate disclosure, and the capital markets: A review of the empirical disclosure literature. Journal of Accounting and Economics, 31(1–3), 405–440. https://doi.org/10.1016/S0165-4101(01)00018-0
Healy, P. M., & Wahlen, J. M. (1999). A Review of the Earnings Management Literature and Its. Accounting Horizons, 13(4), pp.365-383.
Ho, S. S. M., & Shun Wong, K. (2001). A study of the relationship between corporate governance structures and the extent of voluntary disclosure. Journal of International Accounting, Auditing and Taxation, 10(2), 139–156.
https://doi.org/10.1016/S1061-9518(01)00041-6
Kahneman, D., & Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk. Econometrica, 47(2), 263. https://doi.org/10.2307/1914185
Kapellas, K., & Siougle, G. (2017). Financial Reporting Practices and Investment Decisions: A Review of the
Literature. Industrial Engineering & Management, 06(04). https://doi.org/10.4172/2169-0316.1000235
Kedia, S., & Philippon, T. (2009). The economics of fraudulent accounting. Review of Financial Studies, 22(6), 2169–2199. https://doi.org/10.1093/rfs/hhm016
Konstantinidis, A. D., Spinthiropoulos, K., & Kokkonis, G. (2018). Framing And Investment Decision Making. 20(9), 45–49. https://doi.org/10.9790/487X-2009074549
Kothari, S. P., Leone, A., & Wasley, C. (2005). Performance Matched Accruals Measures. Journal of Accounting and Economics, 39(May), 163–197.
Lambert, R., Leuz, C., & Verrecchia, R. E. (2007). Accounting information, disclosure, and the cost of capital. Journal of Accounting Research, 45(2), 385–420. https://doi.org/10.1111/j.1475-679X.2007.00238.x
Lin, C. J., Wang, T., & Pan, C. J. (2016). Financial reporting quality and investment decisions for family firms. Asia Pacific Journal of Management, 33(2), 499–532. https://doi.org/10.1007/s10490-015-9438-8
Linck, J. S., Netter, J., & Shu, T. (2013). Can managers use discretionary accruals to ease financial constraints? Evidence from discretionary accruals prior to investment. Accounting Review, 88(6), 2117–2143. https://doi.org/10.2308/accr-50537
Linhares, F. S., Da Costa, F. M., & Beiruth, A. X. (2018). Gerenciamento de resultados e eficiência de investimentos. Revista Brasileira de Gestao de Negocios, 20(2), 295–310. https://doi.org/10.7819/rbgn.v20i2.3180
Liu, L., & Tian, G. G. (2021). Mandatory CSR disclosure, monitoring and investment efficiency: Evidence from China. Accounting and Finance, 61(1), 595–644. https://doi.org/10.1111/acfi.12588
Liu, S., Lin, S., Sun, Z., & Yuan, L. (2021). Earnings management and firms’ investment behavior: The threshold effect of ROE. Emerging Markets Review, December 2020. https://doi.org/10.1016/j.ememar.2021.100797
McNichols, M. F., & Stubben, S. R. (2008). Does earnings management affect firms’ investment decisions? Accounting Review, 83(6), 1571–1603. https://doi.org/10.2308/accr.2008.83.6.1571
Pallant, J. (2007). SPSS Survival Manual: A Step by Step Guide to Data Analysis Using SPSS for Windows Version 15.
Richardson, S. (2006). Over-investment of free cash flow. Review of Accounting Studies, 11(2–3), 159–189. https://doi.org/10.1007/s11142-006-9012-1
Sumiyana, S. (2020). Different characteristics of the aggregate of accounting earnings between developed and developing countries: Evidence for predicting future GDP. Journal of International Studies, 13(1), 58–80. https://doi.org/10.14254/2071-8330.2020/13-1/4
Sumiyana, S., Atmini, S., & Sugiri, S. (2019). Predictive power of aggregate corporate earnings and their components for future GDP growths: An international comparison. Economics & Sociology, 12(1), 125–142. https://doi.org/10.14254/2071-789X.2019/12-1/7
Tariq, R. (2015). Financial Reporting, Framing Effects and Successful Investment Decision. European Journal of Business and ManagementOnline), 7(19), 2222–2839.
Wu, Y. C., Wei Kiong Ting, I., Lu, W. M., Nourani, M., & Kweh, Q. L. (2016). The impact of earnings management on the performance of ASEAN banks. Economic Modelling, 53, 156–165. https://doi.org/10.1016/j.econmod.2015.11.023
Published
2021-09-25
How to Cite
KURNIAWAN, Firdaus et al.
Manajemen Laba dan Perilaku Investasi: Apakah Framing Effect Diperhitungkan?.
E-Jurnal Akuntansi, [S.l.], v. 31, n. 9, p. 2156-2168, sep. 2021.
ISSN 2302-8556.
Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/73901>. Date accessed: 25 apr. 2024.
doi: https://doi.org/10.24843/EJA.2021.v31.i09.p01.
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