Karakteristik CEO dan Manajemen Laba

https://doi.org/10.35912/jakman.v6i1.3566
Published: Dec 11, 2024

Abstract:

Purpose: The aim of this study is to investigate the effect of Chief Executive Officer (CEO) characteristic, containing CEO age, CEO tenure, and CEO gender on the earnings management examined by the discretionary accruals among 42 firms listed on Indonesia Stock Exchange (IDX) for five years in 2018 until 2022.

Results/findings: The results show that CEO age has no association with earnings management. CEO tenure has a significant positive association with earnings management, whereas CEO gender has a significant negative association with earnings management. Thus, to minimize earnings management, it is crucial to consider the length of time the CEO has been in their position (tenure).

Contribution: The results of this study support both investors and creditors in determining which energy company credit offers to accept. Before making decisions about investments and credit, creditors and investors may take the CEO's traits into account. The CEO's traits may have an impact on the company's earnings management. Managers who are motivated by personal interests control earnings in the financial accounts. Good financial statements serve as the foundation for decisions made by creditors and investors. When earnings management is included, financial statements become unqualified and may cause consumers to be misled when making judgments.

Keywords:
1. CEO age
2. CEO tenure
3. CEO gender
4. Earnings management
Authors:
1 . Made Dwi Ariesta Dennis
2 . Rousilita Suhendah
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How to Cite
Dennis, M. D. A., & Suhendah, R. (2024). Karakteristik CEO dan Manajemen Laba. Jurnal Akuntansi, Keuangan, Dan Manajemen, 6(1), 151–161. https://doi.org/10.35912/jakman.v6i1.3566
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Issue & Section
Vol. 6 No. 1 (2024): Desember
Articles
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This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

References

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    Alhmood, Mohammad Abedalrahman, Hasnah Shaari, and Redhwan Al-dhamari. 2020. “CEO Characteristics and Real Earnings Management in Jordan.” International Journal of Financial Research 11(4):255–66. doi: 10.5430/ijfr.v11n4p255.

    Altarawneh, Marwan, Rohami Shafie, Rokiah Ishak, and B. A. A. Ghaleb. 2022. “Chief Executive Officer Characteristics and Discretionary Accruals in an Emerging Economy.” Cogent Business and Management 9(1). doi: 10.1080/23311975.2021.2024117.

    Bouaziz, Dhouha, Bassem Salhi, and Anis Jarboui. 2020. “CEO Characteristics and Earnings Management: Empirical Evidence from France.” Journal of Financial Reporting and Accounting 18(1):77–110. doi: 10.1108/JFRA-01-2019-0008.

    Cai, Ye, and Merih Sevilir. 2012. “Board Connections and M&A Transactions.” Journal of Financial Economics 103(2):327–49. doi: 10.1016/j.jfineco.2011.05.017.

    Cho, Hyungjin, Ahrum Choi, and Taejin Jung. 2024. “Peer Effects in Investment: Evidence from Early-Tenure CEOs.” European Accounting Review. doi: 10.1080/09638180.2024.2363444.

    Elsheikh, Tamer, Hafiza Aishah Hashim, Nor Raihan Mohamad, Faozi A. Almaqtari, and Abdou Ahmed Ettish. 2022. “CEO Facial Masculinity, Characteristics and Earnings Management.” Management and Accounting Review 21(3):253–82. doi: 10.24191/MAR.V21i03-11.

    Ghaleb, Belal Ali Abdulraheem, Sumaia Ayesh Qaderi, Ahmad Almashaqbeh, and Ameen Qasem. 2021. “Corporate Social Responsibility, Board Gender Diversity and Real Earnings Management: The Case of Jordan.” Cogent Business and Management 8(1). doi: 10.1080/23311975.2021.1883222.

    Gull, Ammar Ali, Mehdi Nekhili, Haithem Nagati, and Tawhid Chtioui. 2018. “Beyond Gender Diversity: How Specific Attributes of Female Directors Affect Earnings Management.” British Accounting Review 50(3):255–74. doi: 10.1016/j.bar.2017.09.001.

    Harris, Oneil, J. Bradley Karl, and Ericka Lawrence. 2019. “CEO Compensation and Earnings Management: Does Gender Really Matters?” Journal of Business Research 98:1–14. doi: 10.1016/j.jbusres.2019.01.013.

    Hasan, Mohammad Tariq, Md Kaium Hossain, Mohammad Sarwar Rekabder, Mohammad Shahansha Molla, and Abu Sadat Muhammad Ashif. 2022. “IFRS Adoption and Real Earnings Management in Bangladesh: The Role of Board Characteristics.” Cogent Business and Management 9(1). doi: 10.1080/23311975.2022.2094587.

    Musa, Auwalu, Rohaida Abdul Latif, and Jamaliah Abdul Majid. 2023. “CEO Attributes, Board Independence, and Real Earnings Management: Evidence from Nigeria.” Cogent Business and Management 10(1). doi: 10.1080/23311975.2023.2194464.

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    Yahaya, Onipe Adabenege, Onipe Adabenege, and Yahaya Phd. 2022. “Do CEOs Influence Earnings Management?” South African Journal of Accounting Research 1 South African Journal of Accounting Research 36(2):2022. doi: 10.1080/10291954.2020.186048x.

  1. Al-Begali, Safia Abdo Ali, and Lian Kee Phua. 2023. “Accruals, Real Earnings Management, and CEO Demographic Attributes in Emerging Markets: Does Concentration of Family Ownership Count?” Cogent Business and Management 10(2). doi: 10.1080/23311975.2023.2239979.
  2. Alhmood, Mohammad Abedalrahman, Hasnah Shaari, and Redhwan Al-dhamari. 2020. “CEO Characteristics and Real Earnings Management in Jordan.” International Journal of Financial Research 11(4):255–66. doi: 10.5430/ijfr.v11n4p255.
  3. Altarawneh, Marwan, Rohami Shafie, Rokiah Ishak, and B. A. A. Ghaleb. 2022. “Chief Executive Officer Characteristics and Discretionary Accruals in an Emerging Economy.” Cogent Business and Management 9(1). doi: 10.1080/23311975.2021.2024117.
  4. Bouaziz, Dhouha, Bassem Salhi, and Anis Jarboui. 2020. “CEO Characteristics and Earnings Management: Empirical Evidence from France.” Journal of Financial Reporting and Accounting 18(1):77–110. doi: 10.1108/JFRA-01-2019-0008.
  5. Cai, Ye, and Merih Sevilir. 2012. “Board Connections and M&A Transactions.” Journal of Financial Economics 103(2):327–49. doi: 10.1016/j.jfineco.2011.05.017.
  6. Cho, Hyungjin, Ahrum Choi, and Taejin Jung. 2024. “Peer Effects in Investment: Evidence from Early-Tenure CEOs.” European Accounting Review. doi: 10.1080/09638180.2024.2363444.
  7. Elsheikh, Tamer, Hafiza Aishah Hashim, Nor Raihan Mohamad, Faozi A. Almaqtari, and Abdou Ahmed Ettish. 2022. “CEO Facial Masculinity, Characteristics and Earnings Management.” Management and Accounting Review 21(3):253–82. doi: 10.24191/MAR.V21i03-11.
  8. Ghaleb, Belal Ali Abdulraheem, Sumaia Ayesh Qaderi, Ahmad Almashaqbeh, and Ameen Qasem. 2021. “Corporate Social Responsibility, Board Gender Diversity and Real Earnings Management: The Case of Jordan.” Cogent Business and Management 8(1). doi: 10.1080/23311975.2021.1883222.
  9. Gull, Ammar Ali, Mehdi Nekhili, Haithem Nagati, and Tawhid Chtioui. 2018. “Beyond Gender Diversity: How Specific Attributes of Female Directors Affect Earnings Management.” British Accounting Review 50(3):255–74. doi: 10.1016/j.bar.2017.09.001.
  10. Harris, Oneil, J. Bradley Karl, and Ericka Lawrence. 2019. “CEO Compensation and Earnings Management: Does Gender Really Matters?” Journal of Business Research 98:1–14. doi: 10.1016/j.jbusres.2019.01.013.
  11. Hasan, Mohammad Tariq, Md Kaium Hossain, Mohammad Sarwar Rekabder, Mohammad Shahansha Molla, and Abu Sadat Muhammad Ashif. 2022. “IFRS Adoption and Real Earnings Management in Bangladesh: The Role of Board Characteristics.” Cogent Business and Management 9(1). doi: 10.1080/23311975.2022.2094587.
  12. Musa, Auwalu, Rohaida Abdul Latif, and Jamaliah Abdul Majid. 2023. “CEO Attributes, Board Independence, and Real Earnings Management: Evidence from Nigeria.” Cogent Business and Management 10(1). doi: 10.1080/23311975.2023.2194464.
  13. Qawasmeh, Saja Yousef, and Mohammad Jamal Azzam. 2020. “Ceo Characteristics and Earnings Management.” Accounting 6(7):1403–10. doi: 10.5267/j.ac.2020.8.009.
  14. Shauki, Elvia R., and Eva Oktavini. 2022. “Earnings Management and Annual Report Readability: The Moderating Effect of Female Directors.” International Journal of Financial Studies 10(3). doi: 10.3390/ijfs10030073.
  15. Thi, Hanh, My Le, Thi Nguyen, Vu Tien Pham, and Thi Vo. 2020. The Impacts of CEO Age and Education Level on Earnings Management: Evidence from Listed Vietnamese Real Estate Firms. Vol. 12.
  16. Yahaya, Onipe Adabenege, Onipe Adabenege, and Yahaya Phd. 2022. “Do CEOs Influence Earnings Management?” South African Journal of Accounting Research 1 South African Journal of Accounting Research 36(2):2022. doi: 10.1080/10291954.2020.186048x.