Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Related Party Transactions, Family Ownership, and Earnings Management in Indonesia

Dublin Core

Title

Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Related Party Transactions, Family Ownership, and Earnings Management in Indonesia

Subject

discretionary accruals; earnings management; family ownership structure; related party transaction

Description

The purpose of earnings management practice is to reach the profit goals the company wants to achieve. Therefore, this study aims to determine the relationship between related party transactions and earnings management in Indonesia by balanced panel data from consumer goods companies listed on the Indonesia Stock Exchange (IDX) from 2017 to 2019. The number of samples used in this study was 102 firm-year observations. The results showed that related party transactions positively and significantly improved corporate earnings management, with discretionary accrual as a proxy. The presence of family ownership strengthens the relationship between related party transactions and earnings management. Also, it shows that the control variable: public accountant from BIG4,
company size, company losses, and ROA affect accrual earnings management. The leverage does not affect accrual earnings management. The study result indicates that family business ownership encourages an entrenchment effect that is detrimental to the company. It is carried out through related party transactions then anipulated by using accrual earnings management practices.

Creator

Levina Ulfa Subastian, Ari Kuncara Widagdo, Doddy Setiawan

Source

DOI: 10.26905/jkdp.v25i3.5778

Publisher

Universitas Merdeka Malang

Date

July 2021

Contributor

Sri Wahyuni

Rights

ISSN: 2443-2687 (Online) ISSN: 1410-8089 (Print)

Format

PDF

Language

English

Type

Text

Coverage

Jurnal Keuangan dan Perbankan Universitas Merdeka Malang

Files

Tags

,Repository, Repository Horizon University Indonesia, Repository Universitas Horizon Indonesia, Horizon.ac.id, Horizon University Indonesia, Universitas Horizon Indonesia, HorizonU, Repo Horizon , ,Repository, Repository Horizon University Indonesia, Repository Universitas Horizon Indonesia, Horizon.ac.id, Horizon University Indonesia, Universitas Horizon Indonesia, HorizonU, Repo Horizon ,

Citation

Levina Ulfa Subastian, Ari Kuncara Widagdo, Doddy Setiawan, “Jurnal Keuangan dan Perbankan Universitas Merdeka Malang
Related Party Transactions, Family Ownership, and Earnings Management in Indonesia,” Repository Horizon University Indonesia, accessed November 22, 2024, https://repository.horizon.ac.id/items/show/4801.