scholarly journals ACCRUAL EARNINGS MANAGEMENT, REAL EARNINGS MANAGEMENT AND FIRM PERFORMANCE: A PANEL DATA ANALYSIS

2021 ◽  
pp. 37-47
Author(s):  
Abraham Lincoln Ayisi ◽  
Zhang Wenfang ◽  
Joseph Adu-Gyamfi ◽  
Agyemang Kwasi Sampene ◽  
Ofori Charles
Keyword(s):  
Firm Performance ◽  
Earnings Management ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
The Body ◽  
Real Earnings Management ◽  
Return On Assets ◽  
Return On Equity ◽  
Dependent Variables ◽  
Ghana Stock Exchange

This research purposely looks into earnings management and how it relates to firm performance. By attempt of gaining empirical results, we proxy firm performance by return on assets (ROA)and return on equity (ROE) as dependent variables. We respectively model discretionary accruals and abnormal cash flow from operations as independent variables supported by firm size, leverage, and liquidity as control variables. Panel analysis was adopted to test a sample of 14 non-financial listed on the Ghana Stock Exchange from 2008 to 2019. We find that firms use both accrual earnings and real earnings methods to manage earnings. Results further indicate firms employ the efficient concept of earnings management to facilitate positive firm performance. Our analysis shows that companies with future acquisition prospects can use earnings management to boost financial efficiency. Although we find evidence of a positive relationship between EM and firm performance, we encourage authorities and facilitators to implement rules requiring transparent financial information to mitigate misleading results and reduce managers discretion. Prospective investors must also perform an in depth review of financial records prior to investing. Finally, our research has added to the body of expertise on earnings management, which positively impacts firm performance. KEYWORDS: Earnings Management, Sales Manipulation, Ghana Stock Exchange, Firm Performance.

scholarly journals Pengaruh Kepemilikan Manajerial, Manajemen Laba Dan Ukuran Perusahaan Terhadap Kinerja Perusahaan

2021 ◽  
pp. 16-27
Author(s):  
Yoli Hermeizi ◽  
Zefriyenni ◽  
Hilda Mary ◽  
Lusiana ◽  
Nila Pratiwi
Keyword(s):  
Firm Performance ◽  
Earnings Management ◽  
Firm Size ◽  
Sampling Method ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Managerial Ownership ◽  
Company Performance ◽  
Analysis Method ◽  
Research Period

This study aims to examine how much influence managerial ownership, earnings management and company size have on company performance. The population in this study was property and real estate companies listed on the Indonesian Stock Exchange (IDX) for the 2014-2018 period. Sampling in this study using purposive sampling method obtained 30 companies with a research period of 5 years from 2014-2018. The analysis method used in this research is panel data analysis using eviews 9. The results obtained partially (t-test) show that managerial ownership and earnings management have no significant effect on firm performance, while firm size has a significant effect on firm performance. The simultaneous results (f-test) of managerial ownership, earnings management and firm size are significant on firm performance. The contribution of managerial ownership, earnings management and company size to company performance is 84%, while the remaining 16% is influenced by other variables that are not included in the model in this study.

scholarly journals Real Earnings Management, Firm Performance, and Corporate Governance Mechanism

2021 ◽  
Vol 3 (2) ◽  
pp. 39-49
Author(s):  
Maria Stefani Osesoga ◽  
Rosita Suryaningsih ◽  
Febryanti Simon
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Earnings Management ◽  
Cash Flow ◽  
Stock Exchange ◽  
Real Earnings Management ◽  
Governance Mechanism ◽  
Discretionary Accrual ◽  
Corporate Governance Mechanism ◽  
The Impact

The purpose of this study is to analyze the impact of real earnings management on firm performance and the impact of corporate governance as an intervening variable in the relationship between real earnings management and firm performance. The object are companies include in Corporate Governance Perception Index during 2015-2019 and listed in Indonesia Stock Exchange (IDX) and analyzed by using path analysis method. Real earnings management has a significant effect on the firm performance. Furthermore, with corporate governance mechanism within the company, real earnings management significantly affect firm performance. This research is meaningful, but has limitations. The result cannot be generalizing because the sample only companies that listed in CGPI and IDX period 2015-2019. The research implication are as follows: top level management should be cautious about credit policy, cash flow from operation, discretionary expenditures, and production. Earnings management is one of variable that the most prevalent in recent studies but the proxy for earnings management in the recent studies used discretionary accrual. In this research, real earnings management is used to indicate earnings management which measured by abnormal cash flow from operation. Thus, it may provide some contribution to the literature.

scholarly journals Analisis Hubungan Manajemen Laba dan Struktur Kepemilikan Terhadap Kinerja Perusahaan di BEI Tahun 2016-2019

Owner ◽  
2021 ◽  
Vol 5 (2) ◽  
pp. 653-662
Author(s):  
Sari Dewi ◽  
Lisa Lisa
Keyword(s):  
Firm Performance ◽  
Earnings Management ◽  
Board Of Directors ◽  
Ownership Structure ◽  
Asset Management ◽  
Stock Exchange ◽  
Secondary Data ◽  
Real Earnings Management ◽  
The Board Of Directors ◽  
Q Model

Firm performance includes the activities produced by company management and high firm performance can be said to allow them to plan their work according to their own goals and take risks with full responsibility. This study was conducted to determine the effect of earnings management, the size of the board of directors, and ownership structure (blockholders ownership, institutional ownership, family ownership, and managerial ownership) on the firm's performance. By using sample data listed on the Indonesia Stock Exchange (IDX) from 2016 to 2019. Because there are several previous studies that produce different values ?? on firm performance. Therefore, it is necessary to re-examine this. In this study using the firm's performance with Tobin's Q model to determine the value of asset management generated by the company. The data used is panel data with secondary data collection techniques to test outliers by SPSS software version 25, then test descriptive statistics, multicollinearity, heteroscedasticity, R Square, F test, and also t-test using Eviews software version 10. The results of this study conclude that both accrual-based and real earnings management have a significant positive effect on firm performance, while the size of the board of directors has a significant negative effect on performance. The ownership structure has no significant effect on the firm's performance. The result of insignificant results could be caused by not supporting the agency theory perspective, as well as the lack of company control.

scholarly journals The Relationship between Real Earnings Management and Cost Behavior

2019 ◽  
Vol 2 (6) ◽  
pp. 65-77
Author(s):  
Bismark Yiadom Boakye ◽  
Francis Atiso ◽  
Elvis Koranteng
Keyword(s):  
Earnings Management ◽  
Stock Exchange ◽  
Study Data ◽  
Real Earnings Management ◽  
Doing Business ◽  
Cost Behavior ◽  
Regulatory Bodies ◽  
The Cost ◽  
Ghana Stock Exchange ◽  
The Relationship

Purpose- This research aims to examine the relationship between real earnings management (REM) and sticky Selling General and Administrative (SG&A) costs in the case of a developing economy. Design/Methodology- The study employed a purposive sampling method. Fifteen firms listed on Ghana stock exchange were selected for the study. Data from the period of 2005 to 20014 were collected. Findings- The study finds Ghanaian listed firm's SG&A cost to be sticky and also see these firms to manipulate earnings through REM. This study finds that REM through discretionary expenses and production cost increases sticky SG&A cost, whereas REM through cash flow reduces sticky SG&A cost. Overall, the results imply that REM exhibit sticky cost. Practical Implications- The study informs managers that cost is not only fixed or variable but also behaves asymmetrically. The understanding of this concept could help managers to implement strategies that will lower the cost of doing business. Also, since some managers deliberately make decisions that lead to real earnings management and sticky cost, we, therefore, believe that this research will be of importance to regulatory bodies, policymakers, investors, and other stakeholders.

scholarly journals Earnings Management: An Advantage or Disadvantage?

2017 ◽  
Vol 2 (2) ◽  
pp. 64-72
Author(s):  
Paulina Sutrisno
Keyword(s):  
Earnings Management ◽  
Stock Exchange ◽  
Cash Flows ◽  
Jel Classification ◽  
Real Earnings Management ◽  
Return On Assets ◽  
Discretionary Accrual ◽  
Price Discounts ◽  
Current Period ◽  
Operating Cash Flows

Objective - The purpose of this research is to examine the consequences of accrual based earnings management and real earnings management on future operating performance.The firms studied engage in accrual-based earnings management with discretionary accrual measures using the modified Jones model and some of the following real earnings management activities: (1) Sales manipulation that accelerates the timing of sales through increased price discounts or cutting prices to boost sales in the current period; and/or (2) cutting of discretionary expenditures to increase income in the current period. Furthermore, the study examines the extent to which discretionary accrual and real earnings management affects subsequent operating performance (as measured by both return on assets and operating cash flows). Methodology/Technique - The sample manufacturing firms that engage in financial statement were listed on the Indonesian Stock Exchange between 2012 and 2014. The hypothesis testing method used in this research is multiple regression linear. Findings - The results suggest that accrual-based earnings management, with discretionary accrual measures, and real earnings management through sales manipulation and discretionary expenditures are positively associated with return on assets after one and two years. Meanwhile, accrual-based earnings management and real earnings management through sales manipulation enhances subsequent operating cash flows. However, real earnings management through discretionary expenditures does not influence operating cash flows. Novelty - This research contributes to the existing literature on the subsequent impact of accrual-based earnings management and real earnings management Type of Paper: Empirical Keywords: Discretionary Accrual; Sales Manipulation; Discretionary Expenditure; Return on Assets; Operating Cash Flows JEL Classification: M21, M41.

scholarly journals The Effect of Financial Leverage, Employee Stock Ownership Program and Firm Size on Firm Performance of Companies Listed in Indonesia Stock Exchange

2017 ◽  
Vol 1 (2) ◽  
pp. 82
Author(s):  
Nurainun Bangun ◽  
F.X. Kurniawan Tjakrawala ◽  
Kurniati W. Andani ◽  
Linda Santioso
Keyword(s):  
Firm Performance ◽  
Firm Size ◽  
Stock Exchange ◽  
Stock Ownership ◽  
Financial Leverage ◽  
Return On Assets ◽  
Return On Equity ◽  
Independent Variables ◽  
Employee Stock Ownership ◽  
Simultaneous Test

The purpose of this research is to examine and to obtain affected empirical evidence of financial leverage, firm size and employee stock ownership program (ESOP) to firm performance in manufacturing company in Indonesian Stock Exchange on 2013-2015. Independent variables in this research are Financial Leverage (DER), Firm Size and Employee Stock Ownership Program (ESOP). Dependent variables in this research are Return on Assets (ROA) and Return On Equity (ROE). The results Showed that the simultaneous test of three independent variables Significantly afftected to the ROA and ROE. The partial tests of Financial Leverage (proxy DER) and Firm Size Significantly affected to ROA and ROE. But, the results Showed that the Employee Stock Ownership Program (ESOP) did not Affect to ROA and ROE.

scholarly journals Staff Efficiency Effects on Financial Performance: A Case Study on Kuwaiti Banks

2020 ◽  
pp. 59-63
Author(s):  
Musaed S. AlAli
Keyword(s):  
Financial Performance ◽  
Stock Exchange ◽  
Return On Assets ◽  
Return On Equity ◽  
Independent Variables ◽  
Kuwait Stock Exchange ◽  
Dependent Variables ◽  
National Bank ◽  
Efficiency Effects

An efficient employee is considered as a valuable asset in any organization, but measuring employee efficiency is not an easy task. This study aims to measure and compare staff efficiency in Kuwaiti banks using the financial performance of the bank as an efficiency proxy. Return on assets (ROA) and return on equity (ROE) are set as dependent variables, and total assets per employee, cost per employee, revenue per employee, number of staff per branch, and total employees’ cost to total revenues are set as independent variables. Using panel OLS regression on the data of 10 Kuwaiti banks that are listed at Kuwait stock exchange (KSE) over the period 2010-2018, results showed that total assets per employee, cost per employee, revenue per employee all had a significant direct relationship with both ROA and ROE and only total employees’ cost to total revenues showed a significant inverse relationship with the financial performance of the banks. The number of staff per branch was the only variable that had no relation with both ROA and ROE. The model showed that the National bank of Kuwait had the most efficient employees’ when it comes to ROA, while Ahli United bank had the most efficient employees’ when ROE was used to measure staff efficiency. In both cases, ROA and ROE, Warba bank had the least efficient staff among all banks under study.

scholarly journals The effect of government ownership on Indonesia’s state-owned enterprises’ (SOE) firm performance

Accounting ◽  
2021 ◽  
Vol 7 (6) ◽  
pp. 1347-1352 ◽  
Author(s):  
Reynaldi Hermansjah ◽  
Sugiarto Sugiarto ◽  
Gracia Shinta S. Ugut ◽  
Edison Hulu
Keyword(s):  
Firm Performance ◽  
Panel Data ◽  
Stock Exchange ◽  
Panel Data Models ◽  
Government Ownership ◽  
Return On Assets ◽  
Return On Equity ◽  
Significant Relationships ◽  
Equity Ratio ◽  
The Impact

This study aimed to analyze the impact of government ownership on Indonesia’s SOE’s financial performance, measured by Return on Assets (ROA) and Return on Equity (ROE) of 20 SOEs that are listed on the Indonesia Stock Exchange during the period 2013 – 2019, using the panel data models. According to the results, government ownership has a positively significant impact on the firm performance (ROA and ROE). Furthermore, the results show that along with government shares, debt to equity ratio, dividend payout ratio, and log of total assets also have significant relationships to the firm performance.

scholarly journals Ownership concentration and corporate performance on the Ghana stock exchange: a panel data analysis

2008 ◽  
Vol 5 (4) ◽  
pp. 196-203
Author(s):  
Godfred Alufar Bokpin
Keyword(s):  
Corporate Governance ◽  
Panel Data ◽  
Corporate Performance ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Ownership Concentration ◽  
Return On Equity ◽  
Exchange Panel ◽  
Ghana Stock Exchange ◽  
The Impact

Corporate governance is linked to corporate performance. The study examines the effect of ownership concentration on corporate performance on the Ghana Stock Exchange. Panel data covering a period from 2001 to 2006 for 28 firms were analyzed within the framework of both the fixed and random effects techniques. The results indicate that the effect of ownership concentration on corporate performance varies with the performance measurement variable. The results indicate a significant positive relationship between ownership concentration and return on assets and Tobin’s Q, whilst there is negative insignificant relationship with return on equity. We also document that insider system of corporate governance is practiced on the Ghana stock exchange as shareholding is highly concentrated in the hands of a few individuals or institutional investors. Other governance features such as board size, board composition and CEO duality are all essential in predicting corporate performance. The results of the study generally support existing literature on the impact of ownership concentration on corporate performance

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