DETERMINAN EARNING MANAGEMENT DAN PENGARUHNYA TERHADAP NILAI PERUSAHAAN (Studi Empiris Pada Perusahaan Manufaktur yang terdaftar di BEI Periode 2017-2018)

Authors

  • Derwin Juan Sagrim
  • Syaikhul Falah
  • Bill J.C Pangayow

DOI:

https://doi.org/10.52062/jakd.v14i2.1455

Abstract

This research has aim to examine the influence of investment opportunities set, board independence, and free cash flow toward firm value with earning management as the intervening variable in manufacturing companies listed on Indonesian Stock Exchange for period 2017 to 2018. This study used a sample of 43 companies with 6 years’ time period. The method of analysis is multiple regression model with further done with path analysis using SPSS 23. These results indicate that investment opportunities set and free cash flow have a significant direct effect on the value of the firm, while investment opportunity set and board independence have the indirect effect. Investment opportunities set, board independence, free cash flow and earning management simultaneously affect the firm value with adjusted R- squared 55.3%. Overall this study indicates that earning management has important role as the intervening variable between
investment opportunities set, board independence & free cash flow relating to firm value.

Downloads

Download data is not yet available.

References

Agustia, Dian. (2013). Pengaruh Faktor Good Corporate Governance, Free Cash Flow, dan

Leverage Terhadap Manajemen Laba.Jurnal Akuntansi dan Keuangan. 15(1), 27-42.

Ajinkya, B., Bhojraj, S., & Sengupta, P. (2005). The Association Between Outside Directors,

Institutional Investors and The Properties of Management Earnings Forecasts. Journal of

Accounting Research. 43(3), 343-376.

Al Najjar, F. & Belkaoui, A.R., (2001).Growth Opportunities and Earnings

Management.Managerial Finance.

(12), 72-81.

Alves, S. (2014). The Effect of Board Independence on The Earnings Quality: Evidence from

Portuguese Listed Companies. Australasian Accounting, Business and Finance Journal. 8,

-44.

Arieska, M. & Gunawan, B (2011).Pengaruh Aliran Kas Bebas dan Keputusan Pendanaan

Terhadap Nilai Pemegang Saham dengan Set Kesempatan Investasi dan Dividen Sebagai

Variabel Moderasi.Jurnal Akuntansi dan Keuangan. 13(1), 13-23.

Arya, A., Glover, J., & Sunder, S. (2003). Are Unmanaged Earnings Always Better for

Shareholders?.Accounting Horizons.111 -116.

Baber, W., Janakiraman, S., & Kang, S. (1996). Investment Opportunities and The Structure of

Executive Compensation. Journal of Accounting and Economics. 21, 297-318.

Brickley, J.A., Coles, J.L., & Jarrell, G. (1997). Leadership Structure: Separating The CEO

and Chairman of The Board. Journal of Corporate Finance. 3, 189-220.

Brush, T., Bromiley, P., & Hendrickx, M. (2000). The Free Cash Fow Hypothesis for Sales

Growth and Firm Performance.Strategic Management Journal. 21, 455–472.

Cardoso, F.T., Martinez, A.L., & Teixeira, A.J.C. (2014). Free Cash Flow and Earnings

Management in Brazil: The Negative Side of Financial Slack. Double Blind Peer Reviewed

International Research Journal. 14, 84–96.

Chen, K.Y., Elder, R.J., & Hung, S. (2010). The Investment Opportunity Set and Earnings

Management: Evidence from The Role of Controlling Shareholders. Corporate

Governance: An International Review.18(3), 193- 211.

Chirinko, Robert S. (1993). Multiple Capital Inputs, Q, and Investment Spending.Journal of

Economic Dynamics and Control.17, 907-938.

Chung, R., Firth, M., & Kim, J.B. (2005).Earnings Management, Surplus Free Cash Flow, and

External Monitoring.Journal of Business Research.58, 766-776.

Conyon, M.J. (1998). Board Control, Remuneration Committees, and Top Management

Compensation.The Academy of Management Journal. 41(2), 146–157.

Dechow, P.M., Ge, W., & Schrand, C.M. (2010). Understanding Earnings Quality: A Review of

The Proxies, Their Determinants and Their Consequences.Journal of Accounting and

Economics.50, 0-401.

Dechow, P.M., & Schrand, C.M. (2004). Earning Quality.United States of America: The

Research Foundation of CFA Institute.

Demski, J.S & Sappington D.E.M. (1992).Further Thoughts on Fully Revealing Income

Jurnal Akuntansi & Keuangan Daerah Volume 14, Nomor 1, November 2019: 56–79

Measurement.The Accounting Review. 67(3), 628-630.

Fama, E.F., & French, K.R. (1998).Taxes, Financing Decisions, and Firm Value. The Journal of

Finance. 53(3), 819-843.

Gaio, C., & Raposo C. (2011). Earnings Quality and Firm Valuation: International Evidance.

Accounting and Finance. 51, 467-499.

Gul, F.A., Leung, S., & Srinidhi, B. (2003).Informative and Opportunistic Earnings Management

and The Value Relevance of Earnings: Some Evidence on the Role of IOS. Paper ofSSRN.

Hasnawati, Sri (2005). Dampak Set Peluang Investasi Terhadap Nilai Perusahaan Publik di

Bursa Efek Jakarta.Jurnal Akuntansi Dan Auditing Indonesia. 9(2), 117-126.

Healy, P., & Palepu, K.G. (1993).The Effect of Firms Financial Disclosure Strategies on Stock

Prices.Accounting Horizons. 7, 1-11.

Holthausen, R.W. (1990). Accounting Method Choice: Opportunistic Behavior, Efficient

Contracting, and Information Perspectives.Journal of Accounting and Economics. 12, 207-

Horne, J.C.V., & Wachowicz. (2009). Fundamental of Financial Management (13thed.). India:

Prentice-Hall of

India Pvt. Limited.

Huang, Y.C., Hou, N.W., & Cheng, Y.J. (2012). Illegal Insider Trading and Corporate

Governance: Evidence From Taiwan. Emerging Markets Finance and Trade. 48(3), 6–22.

Hutchinson, M., & Gul, F.A. (2004). Investment Opportunity Set, Corporate Governance

Practices and Firm Performance. Journal of Corporate Finance. 10, 595–614.

Jensen, M.C., & Meckling, W.H. (1976). Theory ofThe Firm: Managerial Behavior, Agency Cost

and Ownership Structure. Journal of Financial Economics. 3, 305-360.

Jerzemowska, M. (2006).The Main Agency Problems and Their Consequences. Acta

Oeconomica Pragensia.14(3).

Jiraporn, P., Miller, G.A., Yoon, S.S., & Kim, Y.S. (2008). Is Earnings Management

Opportunistic or Beneficial?

An Agency Theory Perspective.International Review of Financial Analysis. 17, 622-634.

Jouber, H., & Fakhfakh, H. (2011). Earnings Management and Board Oversight: an International

Comparison.

Managerial Auditing Journal. 27(1), 66-86.

Kallapur, S., & M.A. Trombley. (2001). The Investment Opportunity Set: Determinants,

Consequences and Measurement. Managerial Finance. 27, 3-15.

Kangarluei, S.J., Motavassel, M., & Abdollahi, T. (2011). The Investigation and Comparison of

Free Cash Flows in The Firms Listed in Tehran Stock Exchange (Tse) With an Emphasis

on Earnings Management. International Journal of Economics and Business

Modeling.2(2).118-123.

Jurnal Akuntansi & Keuangan Daerah Volume 14, Nomor 1, November 2019: 56–79

KazlauskienÄ— Vilma & Christauskas ÄŒeslovas. (2008). Business Valuation Model Based on the

Analysis of

Business Value Drivers. Economics Of Engineering Decisions. 57, 23-31.

Klein, A. (2002). Audit Committee, Board of Director Characteristics, and Earnings

Management. Journal of Accounting and Economics. 33, 375-400.

Kumar, N., & Singh, J.P. (2012). Outside Directors, Corporate Governance and Firm

Performance: Empirical Evidence from India. Asian Journal of Finance & Accounting.

(2), 39-55.

Kusumaningtyas, Titah Kinanti. (2015). Pengaruh Good Corporate Governance Terhadap Nilai

Perusahaan Yang Terdaftar Pada Indeks Sri-Kehati.Jurnal Ilmu & Riset Akuntansi.4(7).

Latridis, G.F. (2012). Hedging and Earnings Management in The Light of IFRS Implementation:

Evidence from The UK Stock Market. The British Accounting Review. 44, 21-35.

Lehn, K., & Poulsen, A. (1989).Free Cash Flow and Stockholder Gains in Going Private

Transactions.Journal of Finance. 44, 771-787.

Mansourlakoraj, R., & Sepasi, S. (2015). Free Cash Flow, Capital Structure and The Value of

Listed Companies in Tehran Stock Exchange. International Journal of Management,

Accounting and Economics. 2(2), 144– 148.

Mehran, H. (1994). Executive Compensation Structure, Ownership, and Firm

Performance.Journal of Financial Economics. 38, 163-184.

Muniandy, B., & Hilier, J. (2015).Board Independence, Investment Opportunity Set and

Performance of South African Firms.Pasific-Basin Finance Journal. 35, 108-124.

Myers, S.C. (1977). Determinants of Corporate Borrowing.Journal of Financial Economics. 5,

-175.

Park, K., & Jang, S. (2013). Capital Structure, Free Cash Flow, Diversification, and Firm

Performance.

International Journal of Hospitalitiy Management. 33, 51-63.

Peraturan Otoritas Jasa Keuangan No.33/POJK.04/2014 Tentang Direksi dan Dewan Komisaris

Emiten atau Perusahaan Publik(c.2) Jakarta, Menteri Hukum dan Hak Asasi Manusia.

Prasetyo, A.H. (2011). Valuasi Perusahaan: Pedoman Untuk Praktisi dan Mahasiswa. Edisi

Kedua, Jakarta: PPM Manajemen.

Retherford, R.D. & Choe, M.K. (1993). Statistical Models for Causal Analysis: Path Analysis.

John Wiley & Sons, Inc.

Richardson, S.A. (2006). Over-Investment of Free Cash Flow.Review of Accounting Studies.

(2-3), 159-189. Rossi, M., Nerino,M., &Capasso, A. (2015).Corporate Governance and

Financial Performance of Italian Listed

Firms.Corporate Ownership & Control, 12(2), 628-643.

Rosdini, D. (2011). The Influence of Investment Opportunity Set and Corporate Governance to

Earnings Quality and Firm Value.

Scott, W. (2006).Financial Accounting Theory (4thed). Toronto, Ontario: Pearson Prentice Hall.

Sekaran, U & Bougie, R.. (2013). Research Methods for Business (6thed). Wiley.

Shu, P.G., Yeh, Y.H., Chiu, S.B., & Yang, Y.W. (2015).Board External Connectedness and

Earnings Management.Asia Pacific Management Review. 30, 1-10.

Siboni, Z.M. & Pourali, M.R. (2015). The Relationship Between Investment Opportunity,

Dividend Policy and Firm Value in Companies Listed in TSE: Evidence from IRAN.

European Online Journal of Natural and Social Sciences 2015.4(1).263-272.

Skinner, D. (1993). The Investment Opportunity Set and Accounting Procedure Choice. Elsevier

Science Publishers B. V. 407-445.

Smith, C., & Watts, R. (1992).The Investment Opportunity Set and Corporate Financing,

Jurnal Akuntansi & Keuangan Daerah Volume 14, Nomor 1, November 2019: 56–79

Dividend and Compensation Policies.Journal of Finance Economic. 32, 509–522.

Stocken, P., & Verrecchia, R. (2004). Financial Reporting System Choice and Disclosure

Management.The Accounting Review. 79, 1181 –1203.

Sun, J., Lan, G., & Ma, Z. (2013). Investment Opportunity Set, Board Independence, and Firm

Performance: The Impact of The Sarbanes-Oxley Act. Managerial Finance. 40(5), 454–

Tosi, H.L., Katz, J.P., & Mejia, L.R.G. (1997). Disaggregating The Agency Contract: The Effects

of Monitoring, Incentive Alignment, and Term in Office on Agent Decision Making. The

Academy of Management Journal. 40(3), 584-602.

Ustman, Subekti, I., & Ghofar, A. (2016).Analisis Pengaruh Manajemen Laba Terhadap Nilai

Perusahaan Sebelum dan Saat Implementasi IFRS.Jurnal Berkala Ilmu Ekonomi. 10(1),

-61.

Wang, G.Y. (2010). The Impacts of Free Cash Flow and Agency Costs on Firm

Performance.Journal of Service Science and Management. 3, 408–418.

Watts, R.L., & Zimmerman, J.L. (1989). Positive Accounting Theory: A Ten Year Perspective.

The Accounting Review.Vol. 65.No. 1.131 -156.

Weisbach, M.S. (1988). Outside Directors and CEO Turnover.Journal of Financial Economics.

431-460.

Zabri, S.M., Ahmad, K., & Wah, K.K. (2016). Corporate Governance Practices and Firm

Performance : Evidance from Top 100 Public Listed Companies in Malaysia. Procedia

Economics and Finance. 35, 287–296

Additional Files

Published

2020-12-13

Issue

Vol. 14 No. 2 (2019)

Section

Artikel