The Effect of Financial Distress, Information Asymmetry, and CEO Characteristics on Earnings Management: The Moderating Role of Internal Control
Even more challenging for companies is keeping their financial statements honest in the face of increasingly complicated rules and intense competition in their respective industries. The temptation for management to resort to earnings management tactics to achieve short-term financial goals can be s...
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| Format: | Article |
| Language: | English |
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Indonesian Institute for Counseling, Education and Therapy (IICET)
2024-09-01
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| Series: | JPPI (Jurnal Penelitian Pendidikan Indonesia) |
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| Online Access: | https://jurnal.iicet.org/index.php/jppi/article/view/4628 |
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| author | Neli Nuraeni Ajeng Luthfiyatul Farida |
| author_facet | Neli Nuraeni Ajeng Luthfiyatul Farida |
| author_sort | Neli Nuraeni |
| collection | DOAJ |
| description | Even more challenging for companies is keeping their financial statements honest in the face of increasingly complicated rules and intense competition in their respective industries. The temptation for management to resort to earnings management tactics to achieve short-term financial goals can be strong in such a scenario. This research project will look at infrastructure, transportation, and logistics-related IDX-listed firms from 2018 to 2022. It will look for patterns in earnings management as an influence of financial distress, information asymmetry, and CEO characteristics like narcissism and power. We will utilize internal control as a moderator to examine the relationship between earnings management and financial distress. Over the course of 5 years, 59 enterprises were selected via purposive samplingand 295 observations were obtained. For this research, we used panel data regression. The financial distress affected earnings management, but information asymmetry, CEO power, and CEO narcissism had no effect. Internal control may also moderate the association between earnings management and financial distress, according to the findings |
| format | Article |
| id | doaj-art-2b81175869434a269e3a4788c2677eb9 |
| institution | Kabale University |
| issn | 2477-8524 2502-8103 |
| language | English |
| publishDate | 2024-09-01 |
| publisher | Indonesian Institute for Counseling, Education and Therapy (IICET) |
| record_format | Article |
| series | JPPI (Jurnal Penelitian Pendidikan Indonesia) |
| spelling | doaj-art-2b81175869434a269e3a4788c2677eb92025-01-27T12:38:04ZengIndonesian Institute for Counseling, Education and Therapy (IICET)JPPI (Jurnal Penelitian Pendidikan Indonesia)2477-85242502-81032024-09-0110310.29210/0202446282561The Effect of Financial Distress, Information Asymmetry, and CEO Characteristics on Earnings Management: The Moderating Role of Internal ControlNeli Nuraeni0Ajeng Luthfiyatul Farida1Accounting Department, School of Economics and Business, Telkom University, Bandung, IndonesiaAccounting Department, School of Economics and Business, Telkom University, Bandung, IndonesiaEven more challenging for companies is keeping their financial statements honest in the face of increasingly complicated rules and intense competition in their respective industries. The temptation for management to resort to earnings management tactics to achieve short-term financial goals can be strong in such a scenario. This research project will look at infrastructure, transportation, and logistics-related IDX-listed firms from 2018 to 2022. It will look for patterns in earnings management as an influence of financial distress, information asymmetry, and CEO characteristics like narcissism and power. We will utilize internal control as a moderator to examine the relationship between earnings management and financial distress. Over the course of 5 years, 59 enterprises were selected via purposive samplingand 295 observations were obtained. For this research, we used panel data regression. The financial distress affected earnings management, but information asymmetry, CEO power, and CEO narcissism had no effect. Internal control may also moderate the association between earnings management and financial distress, according to the findingshttps://jurnal.iicet.org/index.php/jppi/article/view/4628financial distress, information asymmetry, ceo power, ceo narcissism, earnings management, internal control |
| spellingShingle | Neli Nuraeni Ajeng Luthfiyatul Farida The Effect of Financial Distress, Information Asymmetry, and CEO Characteristics on Earnings Management: The Moderating Role of Internal Control JPPI (Jurnal Penelitian Pendidikan Indonesia) financial distress, information asymmetry, ceo power, ceo narcissism, earnings management, internal control |
| title | The Effect of Financial Distress, Information Asymmetry, and CEO Characteristics on Earnings Management: The Moderating Role of Internal Control |
| title_full | The Effect of Financial Distress, Information Asymmetry, and CEO Characteristics on Earnings Management: The Moderating Role of Internal Control |
| title_fullStr | The Effect of Financial Distress, Information Asymmetry, and CEO Characteristics on Earnings Management: The Moderating Role of Internal Control |
| title_full_unstemmed | The Effect of Financial Distress, Information Asymmetry, and CEO Characteristics on Earnings Management: The Moderating Role of Internal Control |
| title_short | The Effect of Financial Distress, Information Asymmetry, and CEO Characteristics on Earnings Management: The Moderating Role of Internal Control |
| title_sort | effect of financial distress information asymmetry and ceo characteristics on earnings management the moderating role of internal control |
| topic | financial distress, information asymmetry, ceo power, ceo narcissism, earnings management, internal control |
| url | https://jurnal.iicet.org/index.php/jppi/article/view/4628 |
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