Article Sidebar

Download
PDF
Statistic
Read Counter : 98 Download : 225

Downloads

Download data is not yet available.

Main Article Content

Abstract

The aim of this research is to provide empirical evidence regarding the effect of Covid-19 on earnings quality with corporate governance as a moderator. Based on agency theory, corporate governance is a monitoring mechanism to improve quality. All manufacturing companies listed on the Indonesia Stock Exchange (BEI) with a research period of 2017-2022 were used as samples for this research. Using purposive sampling technique, the total of observations was 624 from 104 samples. Covid-19 is a dummy variable with the value (1) being in the Covid-19 period (2020-2022) and (0) other than the Covid-19 period (2017-2019). Corporate governance used in this research is the size of the board of directors and the proportion of independent commissioners. All hypothesis tested by using multiple linear regression techniques, IBM SPSS 25. Earnings quality is proxied by accrual earnings management and real earnings management. The research results prove that real earnings management occurs in the form of RM1, RM3 and RM TOTAL. Covid-19 does not cause the practice of accrual earnings management and real earnings management in the form of RM2. Furthermore, corporate governance is unable to moderate in explaining the relationship between Covid-19 and earnings quality.

Keywords

Covid-19 Earnings Quality Corporate Governance Agency Theory

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Riansyah, F. A., Midiastuty, P. P., & Suranta, E. (2023). The Effect COVID-19 On Earnings Quality and the Role of Corporate Governance as a Moderation . Ilomata International Journal of Management, 4(4), 598-616. https://doi.org/10.52728/ijjm.v4i4.950

References

  1. Abdul Wahhab Aljawaheri, B., Kadhem Ojah, H., Hussein Machi, A., & Hamza Almagtome, A. (2021). COVID-19 Lockdown, Earnings Manipulation and Stock Market Sensitivity: An Empirical Study in Iraq. Hamza ALMAGTOME / Journal of Asian Finance, 8(5), 707–0715. https://doi.org/10.13106/jafeb.2021.vol8.no5.0707
  2. Abdullah, W. R. W., Zamri, N., Fatzel, F. H. M., Maruhun, E. N. S., & Yahya, N. A. (2022). The Impact of COVID-19 Pandemic and IFRS Adoption on Earnings Quality: Malaysian Evidence. Journal of Academic Research in Accounting Finance and Management Sciences, 12(3), 536–557.
  3. Alvin, A., & Susanto, Y. K. (2022). Factors Affecting Earnings Quality. Jurnal Bisnis Dan Akuntansi, 24(1), 145–156. https://doi.org/10.34208/jba.v24i1.1401
  4. Angelina, M., & Lindrawati, L. (2022). Analisis Perbandingan Manajemen Laba Sebelum dan Saat Covid-19 Pada Perusahaan Manufaktur di Bursa Efek. Jurnal Akuntansi Indonesia, 11(2), 121. https://doi.org/10.30659/jai.11.2.121-132
  5. Angraini, R., Septiano, R., & Kbp, I. E. (2019). Pengaruh pertumbuhan laba dan likuiditas terhadap kualitas laba pada perusahaan manufaktur sektor karet dan batubara di kota padang. Academic Conference For Accounting, 1(1), 129–140.
  6. Asri, I., & Putri, D. (2012). Peranan Good Corporate Governance Dan Budaya Terhadap Kinerja Organisasi. 7(2), 193–204.
  7. Beyer, A., Guttman, I., & Marinovic, I. (2019). Earnings management and earnings quality: Theory and Evidence. Accounting Review, 94(4), 77–101. https://doi.org/10.2308/accr-52282
  8. Chudik, A., Mohaddes, K., Pesaran, M. H., Raissi, M., & Rebucci, A. (2020). Economic consequences of Covid-19: A counterfactual multi-country analysis. VoxEU.Org, Mi, 3–7.
  9. Cimini, R. (2015). How has the financial crisis affected earnings management? A European study. Applied Economics, 47(3), 302–317. https://doi.org/10.1080/00036846.2014.969828
  10. Cucinotta, D., & Vanelli, M. (2020). WHO declares COVID-19 a pandemic. Acta Biomedica, 91(1), 157–160. https://doi.org/10.23750/abm.v91i1.9397
  11. Dechow, P. M., Hutton, A. P., Kim, J. H., & Sloan, R. G. (2012). Detecting earnings management: A new approach. Journal of Accounting Research, 50(2), 275–334.
  12. Dewi, I. G. A. S., Endiana, I. D. M., & Arizona, I. P. E. (2020). Pengaruh leverage, investment opportunity set (ios), dan mekanisme good corporate covernance terhadap kualitas laba pada perusahaan manufaktur di bursa efek Indonesia. Kumpulan Hasil Riset Mahasiswa Akuntansi (KHARISMA), 2(1).
  13. Eisenhardt, K. M. (1989). Agency theory: An assessment and review. Academy of Management Review, 14(1), 57–74.
  14. 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. https://doi.org/10.1016/j.intfin.2018.12.008
  15. Erkens, D. H., Hung, M., & Matos, P. (2012). Corporate governance in the 2007-2008 financial crisis: Evidence from financial institutions worldwide. Journal of Corporate Finance, 18(2), 389–411. https://doi.org/10.1016/j.jcorpfin.2012.01.005
  16. Fitranita, V., & Coryanata, I. (2019). Pengaruh Good Corporate Governance Terhadap Kualitas Laba Pada Perusahaan Real Estate dan Property. Jurnal Akuntansi, 8(2), 67–76. https://doi.org/10.33369/j.akuntansi.8.2.67-76
  17. Fitranita, V., Kamaludin, K., & Midiastuty, P. P. (2021). Pengaruh Mekanisme Corporate Governance Terhadap Manajemen Laba. Jurnal Fairness, 7(1), 57–68. https://doi.org/10.33369/fairness.v7i1.15145
  18. Hadi, F. W., & Handojo, I. (2018). Faktor-Faktor Yang Mempengaruhi Kualitas Audit Pada Perusahaan Manufaktur. Jurnal Bisnis Dan Akuntansi, 19(2), 209–218. https://doi.org/10.34208/jba.v19i2.273
  19. Hidayah, S., Rapel, & Angela, L. M. (2023). Analisis Komparatif Kualitas Laba Sebelum dan Sesudah Manufaktur yang Terdaftar di Bursa Efek Indonesia Tahun 2019-2020. JEMBA : Jurnal Ekonomi Pembangunan, Manajemen Dan Bisnis Akuntansi, 3(1), 62.
  20. Hsu, Y. L., & Yang, Y. C. (2022). Corporate governance and financial reporting quality during the COVID-19 pandemic. Finance Research Letters, 47. https://doi.org/10.1016/j.frl.2022.102778
  21. Iswara, P. W. (2014). Corporate Governance dan kinerja perusahaan. Jurnal Akuntansi, Ekonomi Dan Manajemen Bisnis, 2(2), 121–131.
  22. Jebran, Khalil; Chen, S. (2021). Int J Fin Econ - 2021 - Jebran - Can we learn lessons from the past COVID‐19 crisis and corporate governance responses.pdf.
  23. Jensen, M., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360.
  24. Litt, B., Sharma, D., & Sharma, V. (2014). Environmental initiatives and earnings management. Managerial Auditing Journal, 29(1), 76–106. https://doi.org/10.1108/MAJ-05-2013-0867
  25. Mandiri, S., & Sebrina, N. (2023). Analisis Kualitas Laba Perusahaan Sebelum dan Selama Pandemi Covid-19 pada Perusahaan yang Terdampak Besar Pandemi Covid-19. Jurnal Eksplorasi Akuntansi, 5(2), 648–665. https://doi.org/10.24036/jea.v5i2.733
  26. Marietza, F., Wijayanti, I. O., & Agusrina, M. (2020). Pengaruh Good Corporate Governance Dan Reporting Lag Terhadap Kinerja Keuangan Perusahaan (Studi Empiris Pada Perusahaan Yang Terdaftar Di Bursa Efek Indonesia Periode 2012-2016). Jurnal Riset Terapan Akuntansi, 4(2), 109–129.
  27. Maryasih, L., Maksum, A., Bastari, & Khadafi, M. (2020). The Effects of Good Corporate Governance and Financial Leverage on Earnings Quality with Book-Tax Differences as Moderation Variables (Study of Manufacturing Companies in the Indonesian Stock Exchange). Proceeding Book of the 3rd International Conference on Multidisciplinary Research, 03(2), 65–70.
  28. Nadirsyah, N., & Muharram, F. N. (2015). Struktur Modal, Good Corporate Governance Dan Kualitas Laba. Jurnal Dinamika Akuntansi Dan Bisnis, 2(2), 184–198.
  29. Pamuji, B. P., & Naimah, Z. (2022). Koneksi Politik Memoderasi Hubungan Struktur Dewan Direksi Dan Komisaris Terhadap Kualitas Laba Di Indonesia. E-Jurnal Akuntansi, 32(12), 3491. https://doi.org/10.24843/eja.2022.v32.i12.p02
  30. Persakis, A., & Iatridis, G. E. (2015). Earnings quality under financial crisis: A global empirical investigation. Journal of Multinational Financial Management, 30, 1–35. https://doi.org/10.1016/j.mulfin.2014.12.002
  31. Pertiwi, P. C., Majidah, M., & Triyanto, D. N. (2017). Kualitas Laba: Corporate Governance Dan Ukuran Perusahaan (studi Pada Perusahaan Yang Terdaftar Dalam Indeks Kompas100 Di Bursa Efek Indonesia Tahun 2012-2016). EProceedings of Management, 4(3).
  32. Priantinah, D. (2017). Perspektif Oportunistik Dan Efisien Dalam Fenomena Manajemen Laba. Jurnal Pendidikan Akuntansi Indonesia, 14(2). https://doi.org/10.21831/jpai.v14i2.12865
  33. Putra, D. A., & Hatta, M. (2023). Corporate Governance, Voluntary Disclosure, Earning Quality, Information Asymmetric: A Conceptual Framework. Open Access Indonesia Journal of Social Sciences, 6(3), 989–997.
  34. Putri, K. D., & Imron, M. (2022). Pengaruh Corporate Governance Terhadap Kualitas Laba Pada Perusahaan Manufaktur Sektor Farmasi Yang Terdaftar Di Bursa Efek Indonesia. National Multidisciplinary Sciences, 1(5), 693–702. https://doi.org/10.32528/nms.v1i5.223
  35. Robik, K., Naruli, A., & Kusuma, M. (2022). Moderasi Kualitas Audit Dalam Pengaruh Manajemen Laba Terhadap Kualitas Laba Komprehensif. Jca (Jurnal Cendekia Akuntansi), 2(2), 27. https://doi.org/10.32503/akuntansi.v2i2.2281
  36. Roychowdhury, S. (2006). Earnings management through real activities manipulation. Journal of Accounting and Economics, 42(3), 335–370. https://doi.org/10.1016/j.jacceco.2006.01.002
  37. Rupilu, W., & Tanan, E. H. P. (2022). The Effect of Good Corporate Governance, Investment Opportunity Set, and Free Cash Flow on the Earnings Quality and the Firm Value (Property Sector and Real Estate) During the Covid-19 Pandemic. Proceedings of the International Conference on Applied Science and Technology on Social Science 2022 (ICAST-SS 2022), 665–673. https://doi.org/10.2991/978-2-494069-83-1_116
  38. Saleh, I., Afifa, M. A., & Haniah, F. (2020). Financial factors affecting earnings management and earnings quality: New evidence from an emerging market. ACRN Journal of Finance and Risk Perspectives, 9(1), 198–216. https://doi.org/10.35944/JOFRP.2020.9.1.014
  39. Saona, P., Muro, L., & Alvarado, M. (2020). How do the ownership structure and board of directors’ features impact earnings management? The Spanish case. Journal of International Financial Management and Accounting, 31(1), 98–133. https://doi.org/10.1111/jifm.12114
  40. Saraswati, K. F. D., Merawati, L. K., & Munidewi, I. A. B. (2020). Pengaruh Likuiditas , Leverage Dan Good Corporate Governance terhadap Kualitas Laba. Fakultas Ekonomi Dan Bisnis Universitas Mahasaraswati, Vol.15(2), 79–89.
  41. Sergakis, K. (2022). EU Corporate Governance. European Journal of Law Reform, 16(4), 728–746. https://doi.org/10.5553/ejlr/138723702014016004005
  42. Suranta, E., Midiastuty, P. P., Marietza, F., & Ramadhani, F. (2014). Pengaruh Grup Bisnis Terhadap Manajemen Laba Dimoderasi Oleh Kepemilikan Saham Pengendali, Perencanaan Pajak, Dan Arus Kas Operasi.
  43. Suryati, A. (2020). Pengaruh Good Corporate Governance Terhadap Kualitas Laba Dengan Ukuran Perusahaan Sebagai Variabel Moderasi. Jurnal Kajian Ilmiah, 20(3), 281–290. https://doi.org/10.31599/jki.v20i3.316
  44. Tita, A. W., & Pohan, H. T. (2022). Pengaruh Good Corporate Governance, Financial Distress, Dan Likuiditas Terhadap Kualitas Laba. Jurnal Ekonomi Trisakti, 2(2), 1735–1746. https://doi.org/10.25105/jet.v2i2.14677
  45. Utomo, E. N., Fitriana, A. I., & Febrianto, H. G. (2020). Analisis Faktor Non Keuangan dan Keuangan Terhadap Kualitas Laba Laporan Keuangan. AKUNTABEL : Jurnal Akuntansi Dan Keuangan, 17(2), 231–240.
  46. Wulandari, R., & Jaya, A. K. (2023). Pengaruh Jumlah Dewan Direksi , Persentase Saham Publik , Leverage , Dan Ukuran Perusahaan Terhadap Manajemen Laba memanfaatkan dan mengelola sumber daya ekonomi untuk memenuhi permintaan dengan cara yang menguntungkan secara finansial ( Swastha dan Sukot. 151–164.
  47. Xiao, H., & Xi, J. (2021). Journal of accounting and taxation the COVID-19 and earnings management: China’s evidence. Journal of Accounting and Taxation, 13(2), 59–77. https://doi.org/10.5897/JAT2020.0436
  48. Yeh, Y., Chen, H. W., & Wu, M. C. (2014). Can information transparency improve earnings quality attributes? Evidence from an enhanced disclosure regime in Taiwan. Emerging Markets Finance and Trade, 50(4), 237–253. https://doi.org/10.2753/REE1540-496X500414

Most read articles by the same author(s)