Accrual earning management and future performance: Evidence from family firm in Indonesia

The purpose reasearch is to examine the effect of earnings management on future performance. We also will assess whether auditor have important role in family firms. The population is all companies listed on the Indonesian stock exchanges from 2012 to 2014 (financial industry was excluded).  The tot...

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Main Authors: Edy Suprianto, Doddy Setiawan
Format: Article
Language:English
Published: Universitas Islam Indonesia 2020-09-01
Series:Jurnal Akuntansi dan Auditing Indonesia
Subjects:
Online Access:https://journal.uii.ac.id/JAAI/article/view/14151
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author Edy Suprianto
Doddy Setiawan
author_facet Edy Suprianto
Doddy Setiawan
author_sort Edy Suprianto
collection DOAJ
description The purpose reasearch is to examine the effect of earnings management on future performance. We also will assess whether auditor have important role in family firms. The population is all companies listed on the Indonesian stock exchanges from 2012 to 2014 (financial industry was excluded).  The total sample used in this study as many as 918 firm-years or observations.  Model by Kaznik (1999) model was used as an earning management proxy because it better than the other models. We suggest that the average value of the firms family future performance (CFOt+1 and NIt+1) is greater than non-family firms. We also show that accrual earnings management in Indonesia is more efficiency than opportunistic. Accrual earning management which conducted by Family Firms is more efficient than Non-Family Firms. Finally, auditor in family firms will increase future performance.  
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record_format Article
series Jurnal Akuntansi dan Auditing Indonesia
spelling doaj-art-eed60cf7a12a4d56a9cfe555c98628962025-08-20T02:15:15ZengUniversitas Islam IndonesiaJurnal Akuntansi dan Auditing Indonesia1410-24202528-65282020-09-0124110.20885/jaai.vol24.iss1.art49768Accrual earning management and future performance: Evidence from family firm in IndonesiaEdy Suprianto0Doddy Setiawan1Universitas Islam Sultan Agung, Semarang, IndonesiaUniversitas Sebelas Maret, Surakarta, IndonesiaThe purpose reasearch is to examine the effect of earnings management on future performance. We also will assess whether auditor have important role in family firms. The population is all companies listed on the Indonesian stock exchanges from 2012 to 2014 (financial industry was excluded).  The total sample used in this study as many as 918 firm-years or observations.  Model by Kaznik (1999) model was used as an earning management proxy because it better than the other models. We suggest that the average value of the firms family future performance (CFOt+1 and NIt+1) is greater than non-family firms. We also show that accrual earnings management in Indonesia is more efficiency than opportunistic. Accrual earning management which conducted by Family Firms is more efficient than Non-Family Firms. Finally, auditor in family firms will increase future performance.   https://journal.uii.ac.id/JAAI/article/view/14151Accrual Earning Managementfuture cash flowsfuture net income and family firms
spellingShingle Edy Suprianto
Doddy Setiawan
Accrual earning management and future performance: Evidence from family firm in Indonesia
Jurnal Akuntansi dan Auditing Indonesia
Accrual Earning Management
future cash flows
future net income and family firms
title Accrual earning management and future performance: Evidence from family firm in Indonesia
title_full Accrual earning management and future performance: Evidence from family firm in Indonesia
title_fullStr Accrual earning management and future performance: Evidence from family firm in Indonesia
title_full_unstemmed Accrual earning management and future performance: Evidence from family firm in Indonesia
title_short Accrual earning management and future performance: Evidence from family firm in Indonesia
title_sort accrual earning management and future performance evidence from family firm in indonesia
topic Accrual Earning Management
future cash flows
future net income and family firms
url https://journal.uii.ac.id/JAAI/article/view/14151
work_keys_str_mv AT edysuprianto accrualearningmanagementandfutureperformanceevidencefromfamilyfirminindonesia
AT doddysetiawan accrualearningmanagementandfutureperformanceevidencefromfamilyfirminindonesia