Audit Committee Effectiveness on Earnings Management
DOI:
https://doi.org/10.30587/innovation.v4i2.6136Keywords:
Number of Meetings, Size of Audit Committee, Earnings ManagementAbstract
This study aims to determine the effect of the number of audit committee meetings and the size of the audit committee on earnings management in manufacturing companies listed on the Indonesia Stock Exchange in 2016, 2017, 2018 and 2019. Earnings management is measured by Discretionary Accruals using the Modified Jones Model. The population in this study were 160 manufacturing companies listed on the Indonesia Stock Exchange for the period 2016-2019. The research data were obtained from the annual reports of manufacturing companies for the period 2016 to 2019. Based on the purposive sampling method, the sample obtained was 40 companies. The hypothesis in this study was tested using multiple linear regression analysis. The results of the test show that the number of meetings and size of the audit committee has a significant effect on earnings management.
References
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Marsha, F., & Ghozali, I. (2017). The Effect of Audit Committee Size, External Audit, Number of Audit Committee Meetings, Number of Board of Commissioners Meetings and Institutional Ownership on Profit Management (Empirical Study of Manufacturing Companies Listed on the IDX in 2012-2014). Diponegoro Journal Of Economics 6(2), 91–102.
Novi, L and Elly, S. (2018). The Influence of Audit Quality, Audit Committee, and Company Size on Earnings Management. Journal of Accounting Dynamics. Vol, 5, No. 1. ISSN: 2355-9357. Pp: 689-696.
Pamudji, Sugeng and Aprillya Trihartati. (2012). "The Influence of Audit Committee Independence and Effectiveness on Earnings Management." Journal of Accounting Dynamics, 2 (1): 21-29.
Financial Services Authority. Regulation of the Financial Services Authority Noor 55/POJK.04/2015 Concerning the Establishment and Guidelines for the Implementation of Audit Committee Work, (2015): 129.
Prastiti, A., & Meiranto, W. (2013). The Influence of the Characteristics of the Board of Commissioners and Company Size on Profit Management. Diponegoro Journal Of Accounting, 2 (4), 1-12.
Priyatno, Duwi (2010). Understand Statistical Analysis of Data with SPSS. Yogyakarta: Mediakom Publisher.
Saleh, N. M., Iskandar, T. M., & Rahmat, M. M. (2007). Audit committee charactristic and earning management: evidence from Malaysia Asian Reviewer of Accounting, International Journal of Auditing 15(2), 147163.
Scott, W. R. (2015). Financial Accounting Theory (In Seventh). Pearson Prentice Hall.
Sihombing, A. R, M., & Laksito, H. (2017). The Influence of Audit Committee Characteristics on Earnings Management. Journal of Accounting And Business, 14(2), 1–10.
Soliman, M., & Rajab, A.A. (2013). Board of Director's Attributes and Earning Management. International Journal of Auditing. Vol 73.
Sugiyono. 2012. Quantitative approach research methods, and R & D. Bandung: Alfabeta.
Sujarwenti, V. W. (2015). Research Methodology-Business and Economics. Yogyakarta: Barus Press Library.
Andanasari, Nuraini and Ayu Chairina Laksmi. (2017). The Effect of Corporate Governance on Profit Management Practices in Mining Companies. XX National Symposium on Accounting. Jember. 2017.
Ardiana, L. (2017). Company Characteristics, Corporate Governance and Profit Management. Journal of Business Accounting, Vol. 15, No. 2, ISSN 1412-775X.
Ghozali, Imam. (2013). Multivariate Application With IBM SPSS 21 Program, Printing VII, Semarang: Diponegoro University Publishing Agency.
Ghozali, Imam. (2016). Multivariate Application with the IBM SPSS 23 Program. Semarang: Diponegoro University Publishing Agency, 2018.
Iskak, Maulana and Lulus Kurniasih. (2016). Corporate Governance and Profit Management Incentives. XIX National Symposium on Accounting. Lampung. 2016..
Jensen, Mechael C. and William H. Meckling. 1976. “Theory of the firm: Managerial Behavior, Agency Cost and Ownership Structure.” Journal of Financial Economics , 27 (2): 153-305-60.
Lestari, Eka and Murtanto. (2017). The Influence of the Effectiveness of the Board of Commissioners and the Audit Committee, Ownership Structure, Audit Quality on Earnings Management. Media Journal of Accounting, Auditing & Information Research, Vol. 17, No. 2, pp. 97-116.
Lidiawati, Novi., & Nur Fadjrih Fun. (2016). Effect of Audit Quality, Audit Committee, Institutional Ownership, Company Size on Profit Management. Journal of Accounting Science and Research: Vol. 5. ISSN: 2460-0586.
Lin, J. W. dan M. I. Hwang. 2010. Audit Quality, Corporate Governance, and Earning Management: A Meta-Ana-lysis. International Journal of Auditing, 14 (1): 57-77.
Marsha, F., & Ghozali, I. (2017). The Effect of Audit Committee Size, External Audit, Number of Audit Committee Meetings, Number of Board of Commissioners Meetings and Institutional Ownership on Profit Management (Empirical Study of Manufacturing Companies Listed on the IDX in 2012-2014). Diponegoro Journal Of Economics 6(2), 91–102.
Marsha, F., & Ghozali, I. (2017). The Effect of Audit Committee Size, External Audit, Number of Audit Committee Meetings, Number of Board of Commissioners Meetings and Institutional Ownership on Profit Management (Empirical Study of Manufacturing Companies Listed on the IDX in 2012-2014). Diponegoro Journal Of Economics 6(2), 91–102.
Novi, L and Elly, S. (2018). The Influence of Audit Quality, Audit Committee, and Company Size on Earnings Management. Journal of Accounting Dynamics. Vol, 5, No. 1. ISSN: 2355-9357. Pp: 689-696.
Pamudji, Sugeng and Aprillya Trihartati. (2012). "The Influence of Audit Committee Independence and Effectiveness on Earnings Management." Journal of Accounting Dynamics, 2 (1): 21-29.
Financial Services Authority. Regulation of the Financial Services Authority Noor 55/POJK.04/2015 Concerning the Establishment and Guidelines for the Implementation of Audit Committee Work, (2015): 129.
Prastiti, A., & Meiranto, W. (2013). The Influence of the Characteristics of the Board of Commissioners and Company Size on Profit Management. Diponegoro Journal Of Accounting, 2 (4), 1-12.
Priyatno, Duwi (2010). Understand Statistical Analysis of Data with SPSS. Yogyakarta: Mediakom Publisher.
Saleh, N. M., Iskandar, T. M., & Rahmat, M. M. (2007). Audit committee charactristic and earning management: evidence from Malaysia Asian Reviewer of Accounting, International Journal of Auditing 15(2), 147163.
Scott, W. R. (2015). Financial Accounting Theory (In Seventh). Pearson Prentice Hall.
Sihombing, A. R, M., & Laksito, H. (2017). The Influence of Audit Committee Characteristics on Earnings Management. Journal of Accounting And Business, 14(2), 1–10.
Soliman, M., & Rajab, A.A. (2013). Board of Director's Attributes and Earning Management. International Journal of Auditing. Vol 73.
Sugiyono. 2012. Quantitative approach research methods, and R & D. Bandung: Alfabeta.
Sujarwenti, V. W. (2015). Research Methodology-Business and Economics. Yogyakarta: Barus Press Library.
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Published
2023-10-01
How to Cite
Perdana, A., Umaimah, U., & Aufa, M. (2023). Audit Committee Effectiveness on Earnings Management. INNOVATION RESEARCH JOURNAL, 4(2), 66–75. https://doi.org/10.30587/innovation.v4i2.6136
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