The Indonesian Journal of Accounting Research
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Experimental Study on Manager Ethical Evaluation Towards Earnings Management and its Consequences
No full textRecent research on earnings management has generally not examined the specific ethical dilemma that arises when a choice to engage in earnings management results in positive organizational consequences. This study focuses on the consequences of earnings management behavior in response to the positive organizational consequences of earnings management that justify the means of earnings management. This experimental research design uses 2x2 between subjects to investigate manager evaluations of, and reactions to, a scenario in which a hypothetical employee makes a choice whether or not to engage in earnings management, with consequences that are either favorable or unfavorable to the organization. The results indicate that managers may be motivated to discount the ethical impact of earnings management when the consequence has a favorable impact on the organization. This finding has implication for corporate governance in the organization to establish a strong ethical tone throughout the organization
The Impacts of User Evaluationsof the Task-Technology Fit to Employees’ Performance: A Case Study at The Information System of the Directorate General of Taxation (SIDJP), Pratama Taxpayers’ Office in the Regional Office Daerah Istimewa Yogyakarta
No full textA key concern in Information System (IS) research has been to betterunderstand the linkage between information systems and individuals’ performance.The presence of technology in an organization will help the organization provideaccurate and relevant information to support individuals in making decisions.The level of technology utilization and task-technology compatibility determinethe effective impact of the technology on individuals’ performances. This study reexaminesa part of the Technology-to-Performance Chain (TPC) model by incorporatingindividual characteristics but it does not include the construct of utilization.When utilization is mandatory, it does not need to be considered. Unlikeprevious studies, the model is tested using a Structural Equation Model (SEM) toprovide evidence on the effectiveness of the TPC model. Data used in this studywere collected from individual information technology usersof the Sistem InformasiDirektorat Jenderal Pajak (SIDJP) in theregional office Daerah IstimewaYogyakarta, Directorate General of Taxes. Data were collected using 322 questionnairesthrough a contact person. Of those, 252 questionnaires were fit to beused (response rate 78.26%). Data analysis was conducted using multivariatestructural equation modeling by AMOS 7. The result shows that the individualcharacteristics of the users are associated with the task-technology fit. The TPCmodel test indicates that the model is robust with a goodness-of-fit index over 0.90.This research highlights the importance of the fit between technologies, users’tasks and users’ characteristics in achieving individual performance impacts frominformation technologies. The conclusion suggests that the needs and abilities ofindividual users be taken into consideration whenever an information system isimplemented. Another conclusion is to take the managerial level (echelon IV andabove) as a respondent to better measure the task characteristics which are definedby non-routine tasks and interdependence tasks
Analisis Perbedaan Antara Laba Akuntansi dan Laba Fiskal Terhadap Persistensi Laba, Akrual, dan Aliran Kas pada Perusahaan Perbankan yangTerdaftar di Bursa Efek Jakarta
No full textThe research aims to examine the role of book-tax differences in indicating the persistence of earnings, accruals, and cash flows for one period ahead earnings. This study also examines whether the level of book-tax differences influences investor's assessments of future earnings persistence. The hypothesis in the alternative form are (1) pre-tax earnings persistence for firms with large (positive or negative) book-tax differences is lower than pre-tax earnings persistence for firms with small book-tax differences; (2) The persistence of the accruals component of earnings for future earnings is lower for firms with large (positive or negative) book-tax differences relative to firms with small book-tax differences; (3) The expectation of pre-tax earnings persistence reflected in stock prices for the accrual component of pre-tax earnings is consistent with observed persistence of accruals for firms with relatively large book-tax differences.The sample of this study was banking companies listed in Jakarta Stock Exchange (JSX) within the period of 2000-2005. The data was collected using purposive sampling method. The amount of the sample was 20 banking. The statistic method using pooled regression.The results of this study showed that firms with large (positive or negative) book-tax differences have earnings and the accruals component of earnings that are less persistent than firms with small book-tax differences; and the stock prices fail fully reflect the information on the accruals component of earnings and cash flows. Investors appear to underestimate the accrual component of earnings and cash flows when firm-years have large book-tax differences
Is There Insider Trading? An Examination of Merger and Acquisition Announcements in the Indonesian Stock Market
No full textThis research examines whether domestic investors reacted to merger and acquisition announcements earlier than the foreign investors. Compared to foreign investors, domestic investors are more familiar with the market environment and have more access to information about companies (i.e., there is information leakage). The domestic investors take this informational advantage by initiating trading activities before the information is made public. The foreign investors react to the announcement when such information is officially announced by companies, and some time they do not react immediately. This so-called insider trading phenomenon commonly happens in emerging markets. Two proxies of market reactions were used: abnormal returns and trading volumes.Fifty-four M&A announcements were identified in the Jakarta Stock Exchange from 1999-2006. The price movements and trading activities of each of these two types of investors were analyzed thoroughly during the ninety-one day window test. The findings indicate that no abnormal returns and abnormal trading volumes were observed in the 91 days surrounding the announcement dates. Further analysis, however, shows that there was information leakage for domestic investors. It is further argued that information leakage exists; domestic investors reacted to the M&A information before companies announced that information to the public
The Intervening Effect of Interpersonal Trust on The Relationship Between Multiple Measured-Based Performanced Evaluation and Job-Related Tension
No full textThis study examines the effect of the use of multiple performance measures (a combination of financial and non-financial measures) in performance evaluations on subordinates’ job-related tension. Specifically, this study investigates whether the effect of such measures is indirect through interpersonal trust. This study hypothesizes that the relationship between multiple measures-based performance evaluation and subordinates’ job-related tension is indirect through subordinates’ interpersonal trust towards their superiors. The results, based on a sample of 70 managers, support the expectation that the use of a mix of financial and non-financial measures in performance evaluations has no direct effect on subordinates’ job-related tension. Instead, the effect of such a mix of performance measures on subordinates’ job-related tension is indirect through interpersonal trust
Dampak Earnings Reporting Lags Terhadap Koefisien Respon Laba
No full textThe objectives of the study are: (1) to analyze the mean difference of market reaction to semi-annual versus annual earnings announcement; (2) to analyze the mean difference of semi-annual versus annual ERC; and (3) to empirically investigate the impact of reporting lags on ERC. This study uses a time-series of 47-listed company on the JSX during 1992-2001. The sample was proportionally selected from 8 industries. This study uses the 10 years time-series on the equation 1 and 10 years pooled-time series on the equation 2. The t test on semi-annual versus annual abnormal return and ERC of equation 1 was used to test the hypotheses 1 and 2. Furthermore, multiple-regression analysis of equation 2 was used to test the hypotheses 3.The result of this study are as follows:(1) the investors respond indifferently of semi-annual and annual earnings announcement, but cumulatively the semi-annual abnormal return is larger relatively to the annual CAR; (2) semi-annual ERC is greater relatively to the annual ERC; (3) there is negative direction of length of reporting lags on the ERC; and (4) based on sensitivity analysis, the determinants of ERC are earnings persistence, earnings predictability, growth opportunity, leverage and industrial effect. The systematic risk and firm size was inconsistent to the previous studies. The reason is probably caused by the structural change bias during 1997-1998 period.The study extent the ERC issues and contribute to BAPEPAM, mainly to the decrees No. 17/PM/2002 that revised the decrees No. 80/PM/1996. This new decrees shorten the reporting lags of semi-annual and annual financial statement to BAPEPAM. Based on the finding that JSX’s investors respond statistically insignificant the signal of early (lately) issuance of financial statements, it (however) supports the BAPEPAM to gradually shorten the new reporting lags regulation. It is suggested to anticipate the global capital market that requires the real-time and more relevance informations
The Impact of External Pressure, Environmental Uncertainty, and Commitment of Management on Implementation of Financial Reporting Transparency
No full textIn Indonesia, studies on the implementation of financial reporting transparency are still very scarce and limited. Based on a survey conducted in the Special Region of Yogyakarta, the purpose of this study is to explore a conceptual model developed to explain the relationship between external pressures, environmental uncertainty, management commitment and in financial reporting transparency. The theoretical development and interpretation of this research is drawn from institutional theory. The samples for this study comprise 149 SKPD in the Special Region of Yogyakarta. This study uses mixed method, applying a combination of two approaches (quantitative and qualitative) at the same time with a sequential explanatory strategy. The Partial Least Square (PLS) method was used to analyze the proposed model and relationships. Content analysis was used to capture the phenomenon of isomorphism that occurred in implementation of the transparency financial reporting. This study provides evidence that the implementation of transparency in financial reporting in the Special Region of Yogyakarta is influenced by external pressures and management commitment. The major contribution of this research is to provide an understanding of the factors that affect the application of financial reporting transparency, which in turn could be used to formulate government policy in the future
Pengaruh Pengumuman Right Issue terhadap Tingkat Keuntungan dan Likuioditas Saham di Bursa Efek Jakarta Periode 1994 – 1996
No full textReal and Accrual-Based Earnings Management: Can A Qualified Auditor Detect It?
No full textThis study examines whether management of public companies in Indonesia engage real earnings management to meet earnings benchmarks. This paper documents evidence consistent with firms committing real earnings management around earnings threshold for poor performing firms. Manager opportunistically utilize price discounts to temporarily increase sales, overproduction to report lower cost of goods sold, and reduction of discretionary expenditures to improve reported margins. Consistent with the conjecture of Roychowdhury (2006) and Cohen & Zarowin (2010) auditors find it more difficult to detect real earnings management than accrual-based earnings management. The results of this study indicate that drawing inferences about earnings management by analyzing only accrual manipulation is inappropriate. This study contributes to the accounting literature by presenting evidence on the real earnings management, which has received relatively little attention to date
Transparency and Corporate Governance: Analysis of Factors Affecting Transparency and Its Effect on Market Valur of The Firm
No full textThis research has 2 models. The first model aims to investigate factors affecting the level of Good Corporate Governance (GCG) transparency in annual reports. Factors being predicted are firm’s specific characteristics and commissionaire characteristics. The second model aims to test empirically whether investors value that GCG transparency, which is reflected in the market value of firms. Moreover, the last model also investigates whether investors also consider other corporate governance variables, such as board characteristics.GCG transparency level is measured using 161 items recommended by GCG Codes, which are developed by KNKCG (2001). The statistical method being used is multiple regression analysis. The result shows that firm’s specific characteristics and commissionaire characteristics could affect the GCG transparency level, except for industry and cross-directorships variables. The GCG transparency level is also responded by the market, together with board characteristics, one of the other corporate governance variables