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
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.
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
Collection
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.
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.