Earnings Management in Property Companies Seen from Financial and Control Factors
DOI:
https://doi.org/10.30737/risk.v6i1.6358Keywords:
manajemen laba, financial distress, cash holding, profitabilitas, Internal ControlAbstract
This study analyzed financial distress, cash holdings, profitability, and internal control’s moderating role on earnings management in Indonesian property/real estate firms (2019–2023). Utilizing secondary data from 21 IDX-listed companies, variables were measured via Debt Service Coverage Ratio (financial distress), cash-to-assets ratio (cash holdings), Return on Assets (profitability), Modified Jones Model (earnings management), and an aggregate loss dummy (internal control). Moderated regression analysis (SPSS 28.0) showed: (1) Financial distress and cash holdings negatively impacted earnings management, while profitability increased it; (2) Internal control moderated only financial distress, with no effect on cash holdings or profitability. Financial distress incentivizes earnings manipulation, whereas strong liquidity and profitability deter such practices. Internal control mitigates distress-related risks but lacks efficacy in liquidity/performance contexts. These findings highlight the necessity of robust governance and transparent reporting, especially for financially distressed firms, to reduce opportunistic accounting. Regulators should prioritize oversight mechanisms targeting financial distress, while acknowledging liquidity and profitability as natural safeguards. The study advances understanding of internal control’s conditional role, offering actionable insights for policymakers and corporate leaders in high-risk sectors. Future research should explore sector-specific external factors (e.g., market volatility) to refine governance frameworks.
References
Atmamiki, K. T., & Priantinah, D. (2023). Pengaruh Leverage, Cash Holding, Ukuran Perusahaan, dan Kualitas Audit terhadap Manajemen Laba. Nominal Barometer Riset Akuntansi Dan Manajemen, 12(2), 227–241.
Chairunnisa, Z., Rasmini, M., & Alexandri, M. B. (2021). Pengaruh Financial Distress terhadap Manajemen Laba pada Perusahaan Sub Sektor Telekomunikasi yang Terdaftar di BEI Periode 2015-2019. INOVASI: Jurnal Ekonomi, Keuangan Dan Manajemen, 17(3), 387–394.
Creswell John and Creswell David. (2023). Research Design, Qualitative, Quantitative and Mixed Methods Approaches. In SAGE Publications,Inc.: Vol. Sixth Edit (Issue 1). https://medium.com/@arifwicaksanaa/pengertian-use-case-a7e576e1b6bf
Dechow, P. M., Sloan, R. G., & Sweeney, A. P. (1995). Detecting Earnings Management. The Medical Journal of Australia, 2(1), 8–10. https://doi.org/10.5694/j.1326-5377.1952.tb109167.x
Diri, M. El. (2018). Introduction to earnings management. In Introduction to Earnings Management. https://doi.org/10.1007/978-3-319-62686-4
Elsa, I. J. (2021). Internal Control Sebagai Moderasi Dalam Hubungan Financial Distress Dengan Accrual Earnings Management. Jurnal Paradigma Akuntansi, 3(4), 1699. https://doi.org/10.24912/jpa.v3i4.15280
Felicia, F., & Natalylova, K. (2022). Pengaruh Profitabilitas, Likuiditas, Leverage, Dan Faktor Lainnya Terhadap Manajemen Laba. E-Jurnal Akuntansi TSM, 2(3), 185–198. https://doi.org/10.34208/ejatsm.v2i3.1700
Ghozali. (2021). Analisis Aplikasi Multivariate.
Kristyaningsih, P., Hariyani, D. S., & Sudrajat, M. A. (2021). Financial Distress Terhadap Manajemen Laba. Business Innovation and Entrepreneurship Journal, 3(3), 151–156. https://doi.org/10.35899/biej.v3i3.297
Linda Santioso, C. (2020). Pengaruh Financial Leverage, Profitability Dan Cash Holding Terhadap Income Smoothing. Jurnal Paradigma Akuntansi, 2(3), 1353. https://doi.org/10.24912/jpa.v2i3.9563
Musyafa, K. A., & Kholilah, K. (2023). Cash Holding, Financial Leverage, Profitability, Firm Size, Income Smoothing: Moderating Managerial Ownership. E-Jurnal Akuntansi, 33(4), 1085. https://doi.org/10.24843/eja.2023.v33.i04.p15
Putri, M., & Naibaho, E. A. B. (2022). the Influence of Financial Distress, Cash Holdings, and Profitability Toward Earnings Management With Internal Control As a Moderating Variable: the Case of. Jurnal Akuntansi Dan Keuangan Indonesia, 19(1), 120–138. https://doi.org/10.21002/jaki.2022.06
Qadri, R. A., & Najiha, N. A. (2021). “Tiga Wajah” Financial Distress: Determinan, Pemediasi, dan Pemoderasi dari Praktik Manajemen Laba di Indonesia. Jurnal Magister Akuntansi Trisakti, 8(2), 171–200. https://doi.org/10.25105/jmat.v8i2.9912
Rosiana, E., Rafa, W. D., & Heniwati, E. (2024). Pengaruh profitabilitas, cash holding, ukuran perusahaan terhadap manajemen laba dengan kepemilikan manajerial sebagai variabel moderasi. AKURASI: Jurnal Riset Akuntansi Dan Keuangan, 6(2), 203–218. https://doi.org/10.36407/akurasi.v6i2.1319
Wilamsari, F., Wardayati, S. M., & Winarno, A. W. (2022). Financial Distress and Earnings Management: The Role of Internal Control as Moderating Variable. International Journal of Social Science and Business, 6(3), 304–309. https://doi.org/10.23887/ijssb.v6i3.46510
Published
Issue
Section
License
Copyright (c) 2025 Rohan As Sadzili, Dwi Suhartini
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with RISK : Jurnal Riset Bisnis dan Ekonomi agree to the following terms:
1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike 4.0 International License. that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
2. Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
Deprecated: json_decode(): Passing null to parameter #1 ($json) of type string is deprecated in /home/ojs.unik-kediri.ac.id/public_html/plugins/generic/citations/CitationsPlugin.php on line 68
