PENGARUH RELATED PARTY TRANSACTIONS TERHADAP PENGGUNAAN MANAJEMEN LABA PADA PERUSAHAAN MANUFAKTUR DI INDONESIA

  • William Teguh Universitas Surabaya
  • Rizky Eriandani Universitas Surabaya
Abstract Views: 359 times
PDF Downloads: 484 times
Keywords: Accrual Earnings Management, Big 4, Indonesia, Real Earnings Management, Related Party Transactions

Abstract

The company's profit can be one of the factors that can determine an investor's decision to make an investment. The company's large and growing profits will surely be attractive to investors. However, the profit reported by the company does not necessarily guarantee that the reported information is the actual condition of the company. Companies can do earnings management resulting from gaps in information between company management and external parties. One of the activities that can be used as an earnings management tool is RPT. This study aims to determine whether RPT is positively related to real earnings management or accrual earnings management on manufacturing companies in Indonesia during the period between 2017-2019 that have been listed on the Indonesia Stock Exchange. The results showed that RPT has no significant effect on real earnings management or accrual earnings management. These results indicate that RPT is used not for earnings management purposes but as an efficient transaction. There are also other factors that influence earnings management such as audit quality and the number of directors.

Downloads

Download data is not yet available.

References

Aharony, J., Wang, J., & Yuan, H. (2010). Tunneling as an incentive for earnings management during the IPO process in China. Journal of Accounting and Public Policy. https://doi.org/10.1016/j.jaccpubpol.2009.10.003

Becker, C. L., Defond, M. L., Jiambalvo, J., & Subramanyam, K. R. (1998). The effect of audit quality on earnings management. Contemporary Accounting Research. https://doi.org/10.1111/j.1911-3846.1998.tb00547.x

Chen, J. J., Chengb, P., & Xiao, X. (2011). Related party transactions as a source of earnings management. Applied Financial Economics. https://doi.org/10.1080/09603107.2010.528361

Cohen, D. A., Dey, A., & Lys, T. Z. (2008). Real and accrual-based earnings management in the pre- and post-sarbanes-oxley periods. Accounting Review. https://doi.org/10.2308/accr.2008.83.3.757

Cohen, D. A., & Zarowin, P. (2010). Accrual-based and real earnings management activities around seasoned equity offerings. Journal of Accounting and Economics. https://doi.org/10.1016/j.jacceco.2010.01.002

DeAngelo, L. E. (1981). Auditor size and audit quality. Journal of Accounting and Economics. https://doi.org/10.1016/0165-4101(81)90002-1

Dechow, P. M., & Dichev, I. D. (2002). The quality of accruals and earnings: The role of accrual estimation errors. Accounting Review. https://doi.org/10.2308/accr.2002.77.s-1.35

Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1996). Causes and consequences of earnings manipulation: An analysis of firms subject to enforcement actions by the SEC. Contemporary Accounting Research. https://doi.org/10.1111/j.1911-3846.1996.tb00489.x

Defond, M. L., & Subramanyam, K. R. (1998). Auditor changes and discretionary accruals. Journal of Accounting and Economics. https://doi.org/10.1016/S0165-4101(98)00018-4

Djankov, S., La Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (2008). The law and economics of self-dealing. Journal of Financial Economics. https://doi.org/10.1016/j.jfineco.2007.02.007

El-Helaly, M., Georgiou, I., & Lowe, A. D. (2018). The interplay between related party transactions and earnings management: The role of audit quality. Journal of International Accounting, Auditing and Taxation, 32(July 2018), 47–60. https://doi.org/10.1016/j.intaccaudtax.2018.07.003

Ghozali, I. (2018). Aplikasi Analisis Multivariate dengan Program IBM SPSS 25. (Edisi 9). Semarang: Badan Penerbit Universitas Diponegoro.

Gordon, E. A., & Henry, E. (2011). Related Party Transactions and Earnings Management. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.612234

Gordon, E. A., Henry, E., Louwers, T. J., & Reed, B. J. (2007). Auditing related party transactions: A literature overview and research synthesis. Accounting Horizons. https://doi.org/10.2308/acch.2007.21.1.81

Gordon, E. A., Henry, E., & Palia, D. (2004). Related Party Transactions and Corporate Governance. In Advances in Financial Economics. https://doi.org/10.1016/S1569-3732(04)09001-2

Hartono, J. (2017). Teori portofolio dan analisis investasi (edisi Kesebelas). In Yogyakarta: BPFE.

Hidayat, M., & Galib, M. (2019). Analisis Leverage Operasi dan Leverage Keuangan Terhadap Earning Per Share (EPS) di Perusahaan Industri Pabrik Kertas yang Terdaftar di Bursa Efek Indonesia. Journal of Economic, Management, Accounting and Technology, 2(1), 33–42. https://doi.org/10.32500/jematech.v2i1.491

Hribar, P., & Collins, D. W. (2002). Errors in estimating accruals: Implications for empirical research. In Journal of Accounting Research. https://doi.org/10.1111/1475-679X.00041

Isshaq, Z., Bokpin, G. A., & Mensah Onumah, J. (2009). Corporate governance, ownership structure, cash holdings, and firm value on the Ghana Stock Exchange. Journal of Risk Finance. https://doi.org/10.1108/15265940911001394

Jian, M., & Wong, T. J. (2010). Propping through related party transactions. Review of Accounting Studies. https://doi.org/10.1007/s11142-008-9081-4

Jones, J. J. (1991). Earnings Management During Import Relief Investigations. Journal of Accounting Research. https://doi.org/10.2307/2491047

Klein, A. (2002). Audit committee, board of director characteristics, and earnings management. Journal of Accounting and Economics. https://doi.org/10.1016/S0165-4101(02)00059-9

Kohlbeck, M., & Mayhew, B. W. (2017). Are Related Party Transactions Red Flags? Contemporary Accounting Research. https://doi.org/10.1111/1911-3846.12296

Leuz, C., Nanda, D., & Wysocki, P. D. (2003). Earnings management and investor protection: An international comparison. Journal of Financial Economics. https://doi.org/10.1016/S0304-405X(03)00121-1

Mulyatno, I. W. (2014). Kepemilikan Manajerial , Kesempatan Investasi , Risiko Finansial , di Indeks Saham Syariah Indonesia ( ISSI ) Iwan Wijaya Mulyatno Kedutaan Besar Indonesia di Mesir Jurnal Bisnis & Manajemen. Jurnal Bisnis Dan Manajemen, 14(2), 81–98.

Peasnell, K. V., Pope, P. F., & Young, S. (2005). Board monitoring and earnings management: Do outside directors influence abnormal accruals? In Journal of Business Finance and Accounting. https://doi.org/10.1111/j.0306-686X.2005.00630.x

Roychowdhury, S. (2006). Earnings management through real activities manipulation. Journal of Accounting and Economics. https://doi.org/10.1016/j.jacceco.2006.01.002

Ryngaert, M., & Thomas, S. (2012). Not All Related Party Transactions (RPTs) Are the Same: Ex Ante Versus Ex Post RPTs. Journal of Accounting Research, 50(3), 845–882. https://doi.org/10.1111/j.1475-679X.2012.00437.x

Scott, W. R. (2015). Financial Accounting Theory 7th Edition. In Financial Accounting Theory. https://doi.org/10.4324/9780429468063

Thomas, W. B., Herrmann, D. R., & Inoue, T. (2004). Earnings Management through Affiliated Transactions. Journal of International Accounting Research. https://doi.org/10.2308/jiar.2004.3.2.1

Wong, T., & Teoh, S. (1993). Perceived auditor quality and the earnings response coefficient. Accounting Review: A Quarterly Journal of the American Accounting Association.

Zang, A. Y. (2012). Evidence on the trade-off between real activities manipulation and accrual-based earnings management. Accounting Review. https://doi.org/10.2308/accr-10196

Published
2021-09-30
How to Cite
William Teguh, & Eriandani, R. (2021). PENGARUH RELATED PARTY TRANSACTIONS TERHADAP PENGGUNAAN MANAJEMEN LABA PADA PERUSAHAAN MANUFAKTUR DI INDONESIA. Akuntansi Dan Teknologi Informasi, 14(2), 62-78. https://doi.org/10.24123/jati.v14i2.4577