PENGARUH FAMILY OWNERSHIP, KUALITAS AUDIT, DEWAN KOMISARIS, KOMITE AUDIT DAN RANGKAP JABATAN TERRHADAP MANAJEMEN LABA PERUSAHAAN DI INDONESIA
Keywords:
Family Company, Company Efforts, Profit Management
Abstract
Abstract
Indonesia is estimated to have approximately 90% family companies. Family companies are seen from the existence of Family Ownership. Agency theory regulates companies, with capital owners and managers bound by contracts. However, when multiple families have ownership of a company, it is difficult to differentiate family interests from company interests. In addition, minority shareholders and controlling shareholders can be involved in conflicts of interest, one of which is earnings management in financial statements. Internal and external efforts can reduce earnings management efforts. This study tries to determine whether earnings management is influenced by family ownership, audit quality, board of commissioners, audit committee, and multiple positions. This research involved 70 companies running from 2021 to 2022, with 140 BEI data obtained through a purposive sampling method. Panel data regression models are used for estimation. There is a development model used to test the hypothesis used in this research, and the results are as follows. The first model shows that family ownership does not have a significant effect but has a positive impact on the earnings management of manufacturing companies listed on the IDX in 2021-2022. This model also shows that the proportion of independent boards has a negative impact on the earnings management of manufacturing companies listed on the IDX in 2021-2022.
Keywords: Family Company, Company Efforts, Profit Management
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References
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Alhadab, M., & Clacher, I. (2018). The impact of audit quality on real and accrual earnings management around IPOs. The British Accounting Review, 50(4), 442-461.
Amoako-Adu, B., Baulkaran, V., & Smith, B. F. (2011). Executive compensation in firms with concentrated control: The impact of dual class structure and family management. Journal of Corporate Finance, 17(5), 1580-1594.
Bao, S. R., & Lewellyn, K. B. (2017). Ownership structure and earnings management in emerging markets—An institutionalized agency perspective. International Business Review, 26(5), 828-838.
Barontini, R., & Caprio, L. (2006). The effect of family control on firm value and performance: Evidence from continental Europe. European Financial Management, 12(5), 689-723.
Beasley, M. S. (1996). An empirical analysis of the relation between the board of director composition and financial statement fraud. Accounting review, 443-465.
Bukit, R. B., & Nasution, F. N. (2015). Employee diff, free cash flow, corporate governance and earnings management. Procedia-Social and Behavioral Sciences, 211, 585-594.
Chang, Y.-C., Kao, M.-S., & Kuo, A. (2014). The influences of governance quality on equity-based entry mode choice: the strengthening role of family control. International Business Review, 23(5), 1008-1020.
Chi, C. W., Hung, K., Cheng, H. W., & Lieu, P. T. (2015). Family firms and earnings management in Taiwan: Influence of corporate governance. International Review of Economics & Finance, 36, 88-98.
Chou, H.-I., Chung, H., & Yin, X. (2013). Attendance of board meetings and company performance: Evidence from Taiwan. Journal of Banking & Finance, 37(11), 4157-4171.
Crespí-Cladera, R., & Pascual-Fuster, B. (2014). Does the independence of independent directors matter? Journal of Corporate Finance, 28, 116-134.
Eng, L. L., Fang, H., Tian, X., Yu, T. R., & Zhang, H. (2019). Financial crisis and real earnings management in family firms: A comparison between China and the United States. Journal of International Financial Markets, Institutions and Money, 59, 184-201.
Ferramosca, S., & Allegrini, M. (2018). The complex role of family involvement in earnings management. Journal of Family Business Strategy, 9(2), 128-141.
Fligstein, N., & Freeland, R. (1995). Theoretical and comparative perspectives on corporate organization. Annual review of sociology, 21(1), 21-43.
Hazarika, S., Karpoff, J. M., & Nahata, R. (2012). Internal corporate governance, CEO turnover, and earnings management. Journal of financial economics, 104(1), 44-69.
Huang, X. S., & Sun, L. (2017). Managerial ability and real earnings management. Advances in accounting, 39, 91-104.
Jaggi, B., Leung, S., & Gul, F. (2009). Family control, board independence and earnings management: Evidence based on Hong Kong firms. Journal of Accounting and Public policy, 28(4), 281-300.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of financial economics, 3(4), 305-360.
Kazemian, S., & Sanusi, Z. M. (2015). Earnings management and ownership Structure. Procedia Economics and Finance, 31, 618-624.
Lassoued, N., Attia, M. B. R., & Sassi, H. (2018). Earnings management in islamic and conventional banks: Does ownership structure matter? Evidence from the MENA region. Journal of International Accounting, Auditing and Taxation, 30, 85-105.
Nazir, M. S., & Afza, T. (2018). Does managerial behavior of managing earnings mitigate the relationship between corporate governance and firm value? Evidence from an emerging market. Future Business Journal, 4(1), 139-156.
Njah, M., & Jarboui, A. (2013). Institutional investors, corporate governance, and earnings management around merger: evidence from French absorbing firms. Journal of Economics Finance and Administrative Science, 18(35), 89-96.
Oecd. (2016). G20/OECD Principles of Corporate Governance:(Turkish Version): OECD.
Purkayastha, S., Veliyath, R., & George, R. (2019). The roles of family ownership and family management in the governance of agency conflicts. Journal of Business Research, 98, 50-64.
PWC. (2014). Survey Bisnis Keluarga 2014 di Indonesia. Retrieved from https://www.pwc.com/id/en/publications/assets/indonesia-report-family-business-survey-2014.pdf
Razzaque, R. M. R., Ali, M. J., & Mather, P. R. (2016). Real earnings management in family firms: Evidence from an emerging economy. Pacific-Basin Finance Journal, 40, 237-250.
Sari, A. I. P., & Putri, I. G. A. D. (2014). Pengaruh Mekanisme Corporate Governance Pada Manajemen Laba. E-Jurnal Akuntansi, 94-104.
Shu, P.-G., Yeh, Y.-H., Chiu, S.-B., & Yang, Y.-W. (2015). Board external connectedness and earnings management. Asia Pacific Management Review, 20(4), 265-274.
Siregar, S. V., & Utama, S. (2008). Type of earnings management and the effect of ownership structure, firm size, and corporate-governance practices: Evidence from Indonesia. The international journal of accounting, 43(1), 1-27.
Sutino, E. R. D., & Khoiruddin, M. (2016). Pengaruh Good Corporate Governance terhadap Manajemen Laba pada Perusahaan yang Masuk dalam JII (Jakarta Islamic Index) Tahun 2012-2013. Management Analysis Journal, 5(3).
Tilba, A., & McNulty, T. (2013). Engaged versus disengaged ownership: The case of pension funds in the UK. Corporate Governance: An International Review, 21(2), 165-182.
Vafeas, N. (2000). Board structure and the informativeness of earnings. Journal of Accounting and Public policy, 19(2), 139-160.
Vafeas, N., & Vlittis, A. (2018). Independent directors and defined benefit pension plan freezes. Journal of Corporate Finance, 50, 505-518.
