Peran Moderasi Kantor Akuntan Publik Big 4 Pada Pengaruh Financial distress Terhadap Earning Management
Abstract
This study examines the effect of financial distress on earnings management by being moderated by KAP BIG 4, leverage and CFO with the aim of being able to minimize earnings management behavior to solve agency problems. This research was conducted on agricultural and mining sector companies. The final sample was 105, using purposive sampling method and using Moderated Regression Analysis (MRA) analysis technique. The results of the analysis show that financial distress has a positive effect on earnings management in agricultural and mining sector companies. Financial distress conditions encourage earnings management behavior. KAP BIG 4 has not been able to moderate the effect of financial distress on earnings management. Suggestions for further research can be to research more broadly in the manufacturing sector and add variables such as tax avoidance or ROE and DER.
Keywords: Financial Distress; Earnings Management; Agency Theory; KAP BIG 4
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References
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Campa, D., & Camacho-Miñano, M. del M. (2015). The impact of SME’s pre-bankruptcy financial distress on earnings management tools. International Review of Financial Analysis, 42, 222–234. https://doi.org/10.1016/J.IRFA.2015.07.004
Chairunesia, W., Sutra, R., Wahyudi, S. M., & Mercu Buana, U. (2018). Terhadap manajemen laba pada perusahaan indonesia yang masuk dalam asean corporate governance scorecard. 11(2), 2622–1950. http://publikasi.mercubuana.ac.id/index.php/profita
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Christiani, I., & Nugrahanti, Y. W. (2014). Pengaruh Kualitas Audit Terhadap Manajemen Laba. Jurnal Akuntansi Dan Keuangan, 16(1), 52–62. https://doi.org/10.9744/jak.16.1.52-62
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Habib, A., Uddin Bhuiyan, B., & Islam, A. (2013). Financial distress, earnings management and market pricing of accruals during the global financial crisis. Managerial Finance, 39(2), 155–180. https://doi.org/10.1108/03074351311294007.
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Hernández, J. G. V., Elizabeth, M., & Cruz, T. (2018). Corporate governance and agency theory : megacable case. https://doi.org/10.22495/cgsrv2i1p5
Hsiao, H., Lin, S., And, A. H.-I. management, & 2010, U. (2010). Earnings management, corporate governance, and auditor’s opinions: a financial distress prediction model. Irbis-Nbuv.Gov.Ua. http://www.irbis-nbuv.gov.ua/cgi-bin/irbis_nbuv/cgiirbis_64.exe.
Istri, C., Pratiwi, E., Suprasto, H. B., Mediatrix, M., Sari, R., & Ariyanto, D. (2022). The effect of financial distress on earning management practices using classification shifting: The moderating effect of good corporate governance. Accounting, 8, 187–196. https://doi.org/10.5267/j.ac.2021.7.002
Jacoby, G., Li, J., & Liu, M. (2019). Financial Distress, Political Affiliation, and Earnings Management: The Case of Politically Affiliated Private Firms Climate risk and earnings management View project Financial Distress, Political Affiliation, and Earnings Management: The Case of Politica. https://doi.org/10.1080/1351847X.2016.1233126
Jensen, M., Governance, W. M.-C., & 2019, U. (1979). Theory of the firm: Managerial behavior, agency costs and ownership structure. Taylorfrancis.Com. https://www.taylorfrancis.com
Li, Y., Li, X., Xiang, E., & Geri Djajadikerta, H. (2020). Financial distress, internal control, and earnings management: Evidence from China. Journal of Contemporary Accounting & Economics, 16(3), 100210. https://doi.org/10.1016/J.JCAE.2020.100210
Putri, A. A. S., Sari, P., Bagus, I., & Astika, P. (2015). Moderasi good corporate governance pada pengaruh antara leverage dan manajemen laba Fakultas Ekonomi dan Bisnis Universitas Udayana ( Unud ), Bali , Indonesia perusahaan dibiayai oleh hutang ( Riyanto , 1995 : 331 ). Menurut Beneish dan Press pendapatan m. 3, 752–769.
Sheikh, N. A., & Wang, Z. (2012). Effects of corporate governance on capital structure : empirical evidence from Pakistan. 12(5), 629–641. https://doi.org/10.1108/14720701211275569
Subramanyam, K. R. (1996). The pricing of discretionary accruals. Journal of Accounting and Economics, 22(1–3), 249–281. https://doi.org/10.1016/S0165-4101(96)00434-X
Supardi, S., & Asmara, E. N. (2019). Financial Factors, Corporate Governance and Earnings Management: Evidence from Indonesian manufacturing industry. 727–736. https://doi.org/10.2991/ICEBEF-18.2019.154
Susanti, et al (2017). Pengaruh profitabilitas, ukuran perusahaan, leverage, dan kualitas audit terhadap manajemen laba (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2012-2015). Jurnal Keperawatan. Universitas Muhammadya Malang, 4(1), 724–732. https://pesquisa.bvsalud.org/portal/resource/en/mdl
Velnampy, T., Lanka, S., In, T. C., & Pratheepkanth, P. (2013). Corporate Governance and Firm Performance: “A Study of Selected Listed Companies in Sri Lanka.” www.ejcmr.org
Winda Wulandari, E., & Kendeng Bendan Ngisor, J. V. (2021). Faktor-Faktor Yang Mempengaruhi Financial Distress. Jurnal Ilmiah Universitas Batanghari Jambi, 21(2), 734–742. https://doi.org/10.33087/jiubj.v21i2.1495
Zang, A. Y. (2012). Evidence on the Trade-Off between Real Activities Manipulation and Accrual-Based Earnings Management. THE ACCOUNTING REVIEW American Accounting Association, 87(2). https://doi.org/10.2308/accr-10196
Altman, E. I. (1970). Ratio Analysis and the Prediction of Firm Failure: A Reply. The Journal of Finance, 25(5), 1169. https://doi.org/10.2307/2325591
Altman, E. I. D. A. F. A. (2013). Z-Score Models’ Application to Italian Companies Subject to Extraordinary Administration by Edward I. Altman, Alessandro Danovi, Alberto Falini :: SSRN. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2686750
Anthony, R. N. . G. (2009). Management Control System, Sistem pengendalian manajemen, Buku 2.
Ashbaugh, H., Collins, D. W., & Lafond, R. (2004). Corporate Governance and the Cost of Equity Capital.
Bisogno, M., & Luca, D. R. (2015). Financial Distress and Earnings Manipulation: Evidence from Italian SMEs Special issue on “Intellectual Capital in Education”-Journal of Intellectual capital. View project Measurement of Assets and Liabilities in Public Sector Financial Reporting: theoretical basis and empirical evidence View project, Journal of Accounting and Finance. 4(1). http://www.bioinfopublication.org/jouarchive.php?opt=&jouid=BPJ0000233
Brigham, E. F. & D. P. R. (2014). Intermediate Financial Management - Eugene F. Brigham, Phillip R. Daves - Google Buku. https://books.google.co.id/books?hl=id&lr=&id=nT1-BAAAQBAJ&oi=fnd&pg=PP1&dq=Brigham,+E.+F.,+%26+Daves,+P.+R.+(2014).+Intermediate+financial+management:+Cengage+Learning.&ots=O6Oj2J2xyd&sig=UQKs4PtKrrICypBZ2feHvXilTVY&redir_esc=y#v=onepage&q=Brigham%2C E. F.%2C %26 Daves%2C P. R. (2014). Intermediate financial management%3A Cengage Learning.&f=false
Campa, D. (2019). Earnings management strategies during financial difficulties: A comparison between listed and unlisted French companies. Research in International Business and Finance, 50, 457–471. https://doi.org/10.1016/J.RIBAF.2019.07.001
Campa, D., & Camacho-Miñano, M. del M. (2015). The impact of SME’s pre-bankruptcy financial distress on earnings management tools. International Review of Financial Analysis, 42, 222–234. https://doi.org/10.1016/J.IRFA.2015.07.004
Chairunesia, W., Sutra, R., Wahyudi, S. M., & Mercu Buana, U. (2018). Terhadap manajemen laba pada perusahaan indonesia yang masuk dalam asean corporate governance scorecard. 11(2), 2622–1950. http://publikasi.mercubuana.ac.id/index.php/profita
Chen, Y., Weston, J. F., & Altman, E. I. (1995). Financial Distress and Restructuring Models. Financial Management, 24(2), 57. https://doi.org/10.2307/3665535
Christiani, I., & Nugrahanti, Y. W. (2014). Pengaruh Kualitas Audit Terhadap Manajemen Laba. Jurnal Akuntansi Dan Keuangan, 16(1), 52–62. https://doi.org/10.9744/jak.16.1.52-62
Dechow, P., Sloan, R., Review, A. S.-A., & 1995, U. (1995). Detecting earnings management. JSTOR. https://www.jstor.org/stable/248303
Feldo, F., Yuliati Sekolah Bisnis dan Ekonomi, R., & Prasetiya Mulya, U. (2019). Hubungan kesulitan keuangan dengan manajemen laba pada perusahaan yang terdaftar di bursa efek indonesia tahun 2010-2016. Equity, 21(2), 141–151. https://doi.org/10.34209/EQU.V21I2.640
Francis, J. R., & Yu, M. D. (2009). Big 4 Office Size and Audit Quality. The Accounting Review, 84(5), 1521–1552. https://doi.org/10.2308/ACCR.2009.84.5.1521
Gaetano, M., Aurelio, T., Carlo, T., & Jon, T. (2020). The impact of financial difficulties on earnings management strategies: The case of Italian non-listed firms. African Journal of Business Management, 14(11), 511–528. https://doi.org/10.5897/ajbm2020.9105
Ghazali, A. W., Shafie, N. A., & Sanusi, Z. M. (2015). Earnings Management: An Analysis of Opportunistic Behaviour, Monitoring Mechanism and Financial Distress. Procedia Economics and Finance, 28, 190–201. https://doi.org/10.1016/S2212-5671(15)01100-4.
Habib, A., Uddin Bhuiyan, B., & Islam, A. (2013). Financial distress, earnings management and market pricing of accruals during the global financial crisis. Managerial Finance, 39(2), 155–180. https://doi.org/10.1108/03074351311294007.
Hcs, G. (2003). Financial accounting theory. www.guelphhumber.ca
Hernández, J. G. V., Elizabeth, M., & Cruz, T. (2018). Corporate governance and agency theory : megacable case. https://doi.org/10.22495/cgsrv2i1p5
Hsiao, H., Lin, S., And, A. H.-I. management, & 2010, U. (2010). Earnings management, corporate governance, and auditor’s opinions: a financial distress prediction model. Irbis-Nbuv.Gov.Ua. http://www.irbis-nbuv.gov.ua/cgi-bin/irbis_nbuv/cgiirbis_64.exe.
Istri, C., Pratiwi, E., Suprasto, H. B., Mediatrix, M., Sari, R., & Ariyanto, D. (2022). The effect of financial distress on earning management practices using classification shifting: The moderating effect of good corporate governance. Accounting, 8, 187–196. https://doi.org/10.5267/j.ac.2021.7.002
Jacoby, G., Li, J., & Liu, M. (2019). Financial Distress, Political Affiliation, and Earnings Management: The Case of Politically Affiliated Private Firms Climate risk and earnings management View project Financial Distress, Political Affiliation, and Earnings Management: The Case of Politica. https://doi.org/10.1080/1351847X.2016.1233126
Jensen, M., Governance, W. M.-C., & 2019, U. (1979). Theory of the firm: Managerial behavior, agency costs and ownership structure. Taylorfrancis.Com. https://www.taylorfrancis.com
Li, Y., Li, X., Xiang, E., & Geri Djajadikerta, H. (2020). Financial distress, internal control, and earnings management: Evidence from China. Journal of Contemporary Accounting & Economics, 16(3), 100210. https://doi.org/10.1016/J.JCAE.2020.100210
Putri, A. A. S., Sari, P., Bagus, I., & Astika, P. (2015). Moderasi good corporate governance pada pengaruh antara leverage dan manajemen laba Fakultas Ekonomi dan Bisnis Universitas Udayana ( Unud ), Bali , Indonesia perusahaan dibiayai oleh hutang ( Riyanto , 1995 : 331 ). Menurut Beneish dan Press pendapatan m. 3, 752–769.
Sheikh, N. A., & Wang, Z. (2012). Effects of corporate governance on capital structure : empirical evidence from Pakistan. 12(5), 629–641. https://doi.org/10.1108/14720701211275569
Subramanyam, K. R. (1996). The pricing of discretionary accruals. Journal of Accounting and Economics, 22(1–3), 249–281. https://doi.org/10.1016/S0165-4101(96)00434-X
Supardi, S., & Asmara, E. N. (2019). Financial Factors, Corporate Governance and Earnings Management: Evidence from Indonesian manufacturing industry. 727–736. https://doi.org/10.2991/ICEBEF-18.2019.154
Susanti, et al (2017). Pengaruh profitabilitas, ukuran perusahaan, leverage, dan kualitas audit terhadap manajemen laba (Studi Empiris pada Perusahaan Manufaktur yang Terdaftar di Bursa Efek Indonesia Periode 2012-2015). Jurnal Keperawatan. Universitas Muhammadya Malang, 4(1), 724–732. https://pesquisa.bvsalud.org/portal/resource/en/mdl
Velnampy, T., Lanka, S., In, T. C., & Pratheepkanth, P. (2013). Corporate Governance and Firm Performance: “A Study of Selected Listed Companies in Sri Lanka.” www.ejcmr.org
Winda Wulandari, E., & Kendeng Bendan Ngisor, J. V. (2021). Faktor-Faktor Yang Mempengaruhi Financial Distress. Jurnal Ilmiah Universitas Batanghari Jambi, 21(2), 734–742. https://doi.org/10.33087/jiubj.v21i2.1495
Zang, A. Y. (2012). Evidence on the Trade-Off between Real Activities Manipulation and Accrual-Based Earnings Management. THE ACCOUNTING REVIEW American Accounting Association, 87(2). https://doi.org/10.2308/accr-10196
Published
2022-09-26
How to Cite
SANTOSO, Rizhika Velajani; SUHADAK, Suhadak.
Peran Moderasi Kantor Akuntan Publik Big 4 Pada Pengaruh Financial distress Terhadap Earning Management.
E-Jurnal Akuntansi, [S.l.], v. 32, n. 9, p. 2695-2706, sep. 2022.
ISSN 2302-8556.
Available at: <https://ojs.unud.ac.id/index.php/akuntansi/article/view/81707>. Date accessed: 20 nov. 2024.
doi: https://doi.org/10.24843/EJA.2022.v32.i09.p05.
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