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Full-Text Articles in Business
The Effect Of Board Size, Board Independence, And The Composition Of Board Independence On Accrual And Real Earnings Management, Rizkia Fitrasari
The Effect Of Board Size, Board Independence, And The Composition Of Board Independence On Accrual And Real Earnings Management, Rizkia Fitrasari
Jurnal Akuntansi dan Keuangan Indonesia
This paper examines the effect of board size, board independence, and the composition of board independence on mitigating accrual and real earnings management by using a sample from companies listed in the S&P 500 index from 2010 to 2019. The study uses random-effect regression analysis and finds evidence that large board size is an ineffective tool for reducing earnings management. In contrast, larger board independence proves to mitigate earnings manipulation. However, when board size interacts with board independence, the result becomes more positive indicating that board independence strengthens the positive effect of board size on earnings management. It can be …
Earnings And Capital Management Through Loan Loss Provisions In Indonesian Banks After Ifrs 9 Implementation, Qadri Fidienil Haq
Earnings And Capital Management Through Loan Loss Provisions In Indonesian Banks After Ifrs 9 Implementation, Qadri Fidienil Haq
Jurnal Akuntansi dan Keuangan Indonesia
This study aims to examine whether Indonesian banks perform earnings and capital management through loan loss provisions and whether IFRS 9 implementation improves accounting quality by focussing on those practices. The analysis is conducted with a sample of 28 banks in Indonesia selected from the Indonesian Stock Exchange from 2012 – 2021. This study adopts a model modified from previous studies (Ahmed et al. 1999; Anandarajan et al. 2003; Anandarajan et al. 2006; Leventis et al. 2011). Using the model, this study finds that Indonesian banks perform earnings management but do not perform capital management through loan loss provisions. Although …
Audit Adjustments And The Discontinuity In Earnings Distribution Around Zero, Chu Yeong Lim, Themin Suwardy, Tracey Chunqi Zhang
Audit Adjustments And The Discontinuity In Earnings Distribution Around Zero, Chu Yeong Lim, Themin Suwardy, Tracey Chunqi Zhang
Research Collection School Of Accountancy
Accounting researchers have documented that a discontinuity exists in earnings distribution around zero. However, there is considerable debate among researchers whether the earnings discontinuity around zero is caused by earnings management. We aim to shed light on the earnings discontinuity debate by examining the impact of audit adjustments on the distribution of earnings using a unique dataset from Singapore containing both recorded and waived adjustments. We find that audit adjustments do not reduce the discontinuity of earnings distribution around zero. This affirms that the results of Lennox et. al (2016) based on pre-tax earnings also apply to post-tax earnings and …
Moving Towards Principles-Based Accounting Standards: The Impact Of The New Revenue Standard On The Quality Of Accrual Accounting, He, Huiyu
Dissertations and Theses Collection (Open Access)
The new revenue standard (ASU 2014-09, codified in ASC 606 and ASC 340-40) establishes a comprehensive framework on accounting for contracts with customers and replaces most existing revenue recognition rules. The new guidance removes the inconsistencies and weaknesses of legacy guidance, while is more principles-based and requires more managerial judgements. Using as-reported data from structured filings to construct aggregate accruals that are potentially affected by the new revenue standard (i.e., sales-related accruals), I find that the new revenue standard increases the quality of sales-related accruals, as measured by future cash flow predictability. The increased cash flow predictability comes not only …